India is actively working to stabilize supply chains of critical minerals by tapping into resource-rich nations in South America, including Peru, Chile, and Argentina. This initiative comes amid the country’s growing focus on renewable energy and green mobility, highlighting the strategic importance of securing essential raw materials.
Strengthening Trade Ties Through FTAs
To support this effort, India is preparing for the third round of FTA negotiations with Chile, while a high-level delegation from the Mines Ministry is visiting Peru to explore investment and import opportunities. These negotiations aim to accelerate agreements. They will ensure timely access to lithium, copper, and rare earths. These minerals are critical for India’s renewable energy and electric mobility ambitions.
Expanding Mineral Imports and Investments
India already imports gold from Peru, and a potential FTA with the country is under active consideration. Currently, five Indian companies have invested in Peru’s mining sector. Their total investments are estimated at $61 million, according to the Indian Embassy in Peru. Peru ranks among India’s top five trading partners in Latin America, making it a key focus for bilateral cooperation.
Strategic Focus on Chile
In Chile, home to some of the world’s largest lithium and copper reserves, India is aiming to strengthen its economic footprint. India aims to secure partnerships and trade agreements to ensure a stable, sustainable supply of critical minerals. This will help reduce vulnerability amid global supply chain disruptions and the strategic use of resources.
Towards a Resilient Green Economy
As reported by etenergyworld.com, India is using targeted negotiations, strategic investments, and stronger trade links in Latin America. These efforts aim to support its energy transition and green technology ambitions. These moves underscore a proactive approach to resource security and sustainable economic growth.
