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

India and Peru are set to hold the next round of Free Trade Agreement negotiations in June 2026, following the most recent round concluded in Lima; a deal is...

What Happened

India and Peru are set to hold the next round of Free Trade Agreement negotiations in June 2026, following the most recent round concluded in Lima; a deal is now targeted for conclusion by end-2026.
The negotiations include, for the first time in any Indian FTA, a dedicated chapter on critical minerals — covering copper, zinc, silver, molybdenum, and lithium — reflecting India's strategic shift toward securing upstream mineral supply chains.
India's copper imports rose 4% to 1.2 million metric tonnes in FY 2024–25, and projections indicate demand will reach 3–3.3 million tonnes by 2030 and 8.9–9.8 million tonnes by 2047, with 91–97% of concentrate requirements needing to be sourced overseas by that date.
Bilateral trade between India and Peru reached USD 6 billion in 2024, doubling over five years; Peru's exports to India are dominated by copper, gold, zinc, silver, and molybdenum, alongside agro-products such as blueberries, avocados, quinoa, and asparagus.
Peru produced approximately 2.7 million metric tonnes of copper in 2024 and attracted USD 4.96 billion in foreign direct investment in the mining sector that year, making it the world's third-largest copper producer.

Static Topic Bridges

Free Trade Agreements (FTAs) — India's Policy and Framework

A Free Trade Agreement is a treaty between two or more countries to reduce or eliminate trade barriers — including tariffs, import quotas, and preferential tariffs — on substantially all trade in goods, and often services and investment. India negotiates FTAs through the Department of Commerce under the Ministry of Commerce and Industry, following a template that includes chapters on goods, services, investment, intellectual property, and dispute resolution. India currently has 13 FTAs in force, including with ASEAN, Japan, South Korea, UAE, and Australia.

India's most recent FTA entered into force: India-UAE CEPA (May 2022) and India-Australia ECTA (December 2022).
India is simultaneously negotiating FTAs with 6 countries/blocs: Australia (for a full FTA), Sri Lanka, Peru, Chile, Israel, and the UK.
An FTA differs from a Preferential Trade Agreement (PTA), which reduces — rather than eliminates — tariffs on a limited list of goods.

Connection to this news: The India-Peru FTA is being shaped not just by trade volumes but by critical mineral security — a novel driver for Indian FTA negotiations that signals a shift from market-access logic to strategic resource logic.

Critical Minerals and India's Resource Security

Critical minerals are raw materials that are economically significant and face supply risks due to geographic concentration of production or geopolitical factors. India's Critical Minerals List (2023) identifies 30 minerals, including copper, lithium, cobalt, nickel, graphite, and rare earth elements, as critical to energy transition, defence, electronics, and green infrastructure.

India's Critical Minerals List was published in 2023 following a government-commissioned study.
The Ministry of Mines has identified 30 critical minerals under the Mines and Minerals (Development and Regulation) Amendment Act, 2023.
India currently imports over 90% of its copper concentrates; domestic smelters (Hindalco at Dahej with 500,000 tonne capacity; Vedanta-Sterlite at Thoothukudi with 460,000 tonne capacity when operational) depend almost entirely on imported ore.
Adani Enterprises has set up a new USD 1.2 billion copper smelter at Mundra, further increasing India's smelting capacity but not its concentrate self-sufficiency.

Connection to this news: India's proposed critical minerals chapter in the Peru FTA is a direct response to the forecast that 91–97% of concentrate needs will be imported by 2047. A dedicated chapter aims to secure preferential access, joint exploration rights, and price stabilisation mechanisms — a template India is simultaneously pursuing with Chile.

Peru's Place in Global Copper Markets

Peru is the world's third-largest copper producer (after Chile and the Democratic Republic of Congo) and the second-largest silver producer globally. Its mining sector is governed by the General Mining Law (Legislative Decree 109, later consolidated as Supreme Decree 014-92-EM) and is open to foreign investment under Peru's 1993 Constitution, which guarantees equal treatment for foreign and domestic investors in natural resources.

Peru's copper output: approximately 2.7 million metric tonnes in 2024.
Major copper mines: Antamina (shared Glencore-BHP), Cerro Verde (Freeport-McMoRan), Las Bambas (MMG Ltd — Chinese owned), and Quellaveco (Anglo American).
Peru contributes approximately 10% of global copper supply.
Chile and Peru together account for nearly 40% of world copper mine output.

Connection to this news: Peru's offer to include a critical minerals chapter — with provisions for preferential copper concentrate supply — directly addresses India's import dependency. Indian firm Hindalco has already engaged with Peruvian suppliers to secure ore volumes.

Key Facts & Data

India-Peru bilateral trade: USD 6 billion (2024); USD 4.03 billion in FY 2023–24 by an alternative measure — target is USD 7 billion for 2025.
India's copper import volume: 1.2 million metric tonnes (FY 2024–25), up 4% year-on-year.
India's projected copper demand: 3–3.3 million tonnes by 2030; 8.9–9.8 million tonnes by 2047.
India's domestic copper smelting capacity: ~1 million tonnes (Hindalco + Sterlite when both fully operational).
Peru copper production: ~2.7 million metric tonnes (2024); world rank: 3rd.
Peru FDI in mining: USD 4.96 billion (2024).
India-Peru FTA: negotiations at 9th round as of 2025; 10th round expected in New Delhi.
FTAs India currently negotiating: 6 (Australia, Sri Lanka, Peru, Chile, Israel, UK).