India targets South American markets to diversify trade partnerships

India's push to diversify its trade portfolio will gain momentum with Commerce Secretary Rajesh Agrawal's visit to South America from August 24 to 28, focusing on three key economies: Chile, Argentina, and Brazil.

During the tour, Agrawal will chair bilateral trade meetings in both Argentina and Brazil to review existing agreements and identify fresh avenues for commercial collaboration. The visits form part of New Delhi's broader strategy to reduce trade concentration and develop partnerships beyond traditional markets.

Chile holds particular significance in this initiative, with negotiations for a Comprehensive Economic Partnership Agreement (CEPA) in advanced stages. Officials indicate that discussions are close to resolution, with only select issues requiring attention. Market access for Indian goods and critical minerals—essential for India's manufacturing and energy sectors—are expected to dominate talks in Santiago.

The two nations have built their commercial relationship on a Preferential Trade Agreement established in 2006. The proposed CEPA would supersede this framework, enabling deeper economic integration across a wider range of sectors and removing additional trade barriers.

India's engagement with South America reflects its wider strategy to strengthen commercial ties with emerging economies outside Asia and Europe, seeking to capitalise on growing demand and untapped export markets in the region.