India’s Commerce Secretary is scheduled to visit Chile in late August 2026 to upgrade trade ties into a Comprehensive Economic Partnership Agreement. The move aims to secure stable supplies of lithium and copper, impacting mining firms like Coal India and Hindustan Copper.
India is set to intensify trade negotiations with Chile, with Commerce Secretary Rajesh Agrawal scheduled to visit Santiago in late August 2026. The primary goal is to upgrade the existing 2006 Preferential Trade Agreement into a Comprehensive Economic Partnership Agreement (CEPA). This shift aims to reduce trade barriers and provide India with more reliable access to essential resources needed for its growing economy and energy transition.
Strategic Focus on Critical Minerals
The negotiations are heavily focused on critical minerals, including lithium, copper, and molybdenum. These resources are vital for India’s clean energy shift, particularly for electric vehicle (EV) battery manufacturing and renewable energy infrastructure. By securing these minerals through a dedicated chapter in the potential trade deal, India hopes to reduce its reliance on single-source markets and mitigate supply chain risks. Global competition for these commodities has increased, with major economies actively vying for mining rights to secure their own future energy needs.
Impact on Indian Mining Companies
Several Indian public sector undertakings are already evaluating opportunities in Chile to integrate their supply chains. Coal India has been in discussions regarding the potential acquisition of a unit belonging to Canada-based Wealth Minerals, which holds significant lithium assets in Chile. However, any deal remains subject to regulatory license approvals and ongoing due diligence. Similarly, Hindustan Copper is exploring potential joint ventures with Chile's state-owned mining firm, Codelco, for mining operations and is evaluating the acquisition of copper mining blocks. These moves represent an effort by these companies to secure long-term raw material sources, though success depends heavily on navigating local mining regulations and project execution.
Trade Dynamics and Potential Risks
Bilateral trade between India and Chile has grown steadily, reaching $5.38 billion in 2025. While exports have risen, imports—largely driven by gold and mineral purchases—have increased at a faster pace, leading to a widening trade deficit for India. Investors should monitor how the new trade agreement addresses this imbalance while facilitating mineral imports.
There are also notable risks. The regulatory environment in Chile can be complex, with frequent policy shifts regarding mining concessions and environmental standards that could delay or stall investments. Furthermore, the global race for these minerals means that Indian firms face stiff competition, which could inflate costs for mining assets. For investors, the key monitorables will be the progress of the upcoming trade negotiations, the status of license approvals for specific mining projects, and management updates regarding the financial viability of these international ventures.