India, Peru likely to hold talks on free trade pact in June, diplomat says

India and Peru are expected to resume free trade agreement (FTA) negotiations in June 2026, with Peru's Ambassador to India, Javier Paulinich, indicating tha...

What Happened

India and Peru are expected to resume free trade agreement (FTA) negotiations in June 2026, with Peru's Ambassador to India, Javier Paulinich, indicating that a deal could potentially be finalised by end of 2026.
A dedicated chapter on critical minerals — particularly copper — is a central element of India's negotiating position.
Peru, the world's third-largest copper producer, produced approximately 2.7 million metric tonnes of copper in 2024, attracting USD 4.96 billion in foreign investment in the sector.
Indian firm Hindalco Industries is among the companies looking to secure copper supplies from Peru.
India's copper imports rose 4% to 1.2 million metric tonnes in the fiscal year ending March 2025; demand is projected to climb to 3–3.3 million tonnes by 2030 and up to 9.8 million tonnes by 2047.
Peru is studying India's demand for a separate standalone chapter on critical minerals within the FTA framework.

Static Topic Bridges

Free Trade Agreements (FTAs): Definition and Types

A Free Trade Agreement (FTA) is a treaty between two or more countries that reduces or eliminates tariffs, quotas, and other trade barriers on goods and services traded between them. FTAs are a form of preferential trade arrangement that operates outside the WTO's Most Favoured Nation (MFN) principle, permitted under GATT Article XXIV. India has 13 FTAs/CEPAs in force including agreements with ASEAN, Japan, South Korea, UAE, Australia, and EFTA (2025). Several more are under negotiation including with the EU, Canada, and now Peru.

Types of trade agreements by scope: Preferential Trade Agreement (PTA) — partial tariff concessions; FTA — substantial tariff elimination; Comprehensive Economic Partnership Agreement (CEPA) — covers goods, services, investment, and IPR; Comprehensive Economic Cooperation Agreement (CECA) — broadest coverage.
India-UAE CEPA (2022) and India-Australia ECTA (2022) are India's most recent bilateral FTAs.
India-EFTA FTA (March 2024, in force 2025) included Iceland and Norway, both of which are also Peru's regional neighbours in the OECD grouping.
Bilateral FTAs are governed under WTO rules (GATT Article XXIV for goods; GATS Article V for services).
India has had mixed experiences with FTAs — the India-ASEAN FTA led to trade deficits with some partners, prompting India to review its FTA strategy and emphasise reciprocity.

Connection to this news: The India-Peru FTA is part of India's renewed, more strategic approach to FTAs — one that explicitly includes resource security (critical minerals chapter) as a negotiating objective, moving beyond traditional tariff reduction frameworks.

Critical Minerals and India's Resource Security

Critical minerals are raw materials essential for clean energy technologies, semiconductors, defence electronics, and advanced manufacturing, for which supply chains are geographically concentrated and substitution is difficult. India's National Critical Minerals Mission (NCMM), launched in 2025 with a budget of approximately INR 16,300 crore, aims to secure critical mineral supply chains through domestic exploration and foreign mine acquisitions. Copper is central to India's energy transition — it is essential for electric vehicles (EVs), EV charging infrastructure, solar panels, wind turbines, and power grid upgrades. India currently imports 90–95% of its copper ore requirements and has been a net importer of refined copper since FY 2019.

India's copper demand: approximately 1.2 million tonnes (FY2025 imports); projected at 3.0–3.3 million tonnes by 2030 and 8.8–9.8 million tonnes by 2047.
The closure of the Sterlite Copper smelter in Tuticorin (2018) reduced India's refined copper output by approximately 40%, deepening import dependence.
Peru is the world's third-largest copper producer (after Chile and the DRC), producing approximately 2.7 million metric tonnes in 2024.
India's National Critical Minerals Mission (NCMM) targets 1,200 exploration projects and acquisition of 50 foreign mines.
Other critical minerals relevant for India: lithium (EV batteries), cobalt, nickel, rare earth elements (REEs), and manganese.
India has signed mineral security agreements with Australia, Argentina, and the US; Peru represents an expansion into Latin America.

Connection to this news: India's push for a standalone critical minerals chapter in the India-Peru FTA reflects a structural shift in how India frames trade negotiations — copper access is no longer just a commercial question but a strategic imperative for the country's Viksit Bharat 2047 and energy transition goals.

India-Latin America Economic Ties: Context

India's trade and investment engagement with Latin America has historically been limited compared to its ties with East Asia, the Gulf, and Europe. Total India-Latin America trade stood at approximately USD 50 billion in 2023. The region, however, holds disproportionate strategic value as a source of critical minerals: Chile and Peru together account for approximately 40% of global copper production; Argentina, Chile, and Bolivia hold the "lithium triangle" with 60%+ of global lithium reserves; Brazil is a major source of iron ore, nickel, and rare earths.

India has FTAs with Mercosur (preferential trade agreement only) and Chile (PTA, 2006) but no comprehensive bilateral FTA with any major Latin American economy.
India-Peru bilateral trade is relatively modest at approximately USD 3.4 billion, with Peru exporting minerals and India exporting pharmaceuticals and machinery.
Peru's ambassador's statement represents the first concrete timeline for resuming negotiations since earlier rounds stalled.
The critical minerals chapter demand aligns with India's broader minerals diplomacy under the Mineral Security Partnership (MSP) framework led by the US and G7.

Connection to this news: An India-Peru FTA, if concluded, would be India's first comprehensive trade agreement with a Latin American economy and a template for embedding resource security into future bilateral trade architecture.

Key Facts & Data

India-Peru FTA talks expected to resume in June 2026; deal potentially by end of 2026.
Peru: world's third-largest copper producer; produced approximately 2.7 million metric tonnes in 2024.
Peru attracted USD 4.96 billion in foreign investment in the copper sector in 2024.
India's copper imports: approximately 1.2 million metric tonnes (FY 2025), up 4% year-on-year.
India's copper demand projection: 3.0–3.3 million tonnes by 2030; up to 9.8 million tonnes by 2047.
India imports approximately 90–95% of its copper ore requirements; net importer of refined copper since FY 2019.
National Critical Minerals Mission (NCMM): INR 16,300 crore budget, targeting 50 foreign mine acquisitions by 2031.
Hindalco Industries (Aditya Birla Group) is among Indian companies in discussions for Peruvian copper supply.
India has 13 FTAs/CEPAs in force; India-Peru would be the first comprehensive bilateral FTA with a Latin American economy.