The negotiations for the free trade agreement (FTA) with Chile will be closed soon and once it is done it will boost India’s access to critical minerals, said Commerce and Industry Minister Piyush Goyal on Friday.
“We are engaged in active dialogue with many developed nations (for free trade agreements)...We will soon close the FTA with Chile. It will open up critical minerals for us," Goyal said at an event of the Institute of Chartered Accountants of India.
The proposed pact with the South American country would help secure supplies of minerals such as lithium, copper, rhenium, molybdenum and cobalt—key inputs for sectors including electronics, automobiles and solar energy. Goyal said the agreement would support India’s efforts to strengthen supply chains for emerging and strategic industries as demand for these materials rises.
Chile is among the world’s major holders of critical mineral reserves, and the agreement is seen as part of India’s broader push to diversify sourcing and reduce dependence on a limited set of global suppliers. India and Chile signed the Terms of Reference (ToR) for a Comprehensive Economic Partnership Agreement (CEPA) in May 2025. The proposed CEPA seeks to build on the existing preferential trade agreement between the two countries and expand coverage to a wider set of sectors, including digital services, investment facilitation, MSMEs and critical minerals.
With India aiming to scale up manufacturing of electric vehicles, the need for the critical mineral is also on the rise. Currently, India is heavily dependent on Chinese imports for critical minerals.
The Economic Survey 2025–26 flagged intensifying global competition for critical minerals such as lithium, cobalt, nickel, copper and rare earths, which are vital for EV batteries and clean technologies. It said these metals are central to energy security and geopolitics, with India balancing strategic autonomy and global integration through the National Critical Mineral Mission and international partnerships.
Currently, India has a trade deficit of $1.4 billion with Chile. As of 2024-25, India's exports to Chile went down by 2.46% to just $1.15 billion. Imports, however, grew 72% to $2.60 billion.