India is intensifying its strategic outreach in Latin America, with Peru emerging as a key partner in this expanding engagement. The two nations are working closely to build a comprehensive economic and diplomatic framework aimed at deepening bilateral relations and enhancing trade and investment flows.

Recognized for its rich natural resources and strategic location on the Pacific coast, Peru is being positioned by New Delhi as a pivotal gateway to Latin America. This focus aligns with India’s broader global strategy to diversify trade relationships and strengthen south-south cooperation. The collaboration between the governments and diplomatic missions of both countries has gained momentum, with ongoing efforts to establish mechanisms that simplify trade procedures, reduce bureaucratic hurdles, and create attractive investment opportunities across sectors such as mining, renewable energy, pharmaceuticals, IT, and infrastructure.

Central to this partnership is the ongoing negotiation of a Free Trade Agreement (FTA), which is expected to be concluded in the first half of this year. The agreement promises to unlock new dimensions in economic cooperation, offering a strong platform for bilateral commerce. If finalized, Peru would become the first Latin American nation to sign an FTA with India, reinforcing its role as a strategic hub for India's regional outreach.

The two sides are also promoting institutional frameworks to facilitate business expansion, encourage mutual investments, and increase connectivity. With Peru’s modern port infrastructure—such as the Chancay megaport and the Port of Callao—serving as logistical bridges to Asia, the country is set to play a crucial role in enhancing India’s trade footprint in Latin America.

In an exclusive conversation with The Pioneer, Ambassador Javier Paulinich shed light on the evolving Indo-Peruvian partnership and the transformative potential of the proposed FTA.

1. It is estimated that the Free Trade Agreement (FTA) with India will be finalized in the first half of this year. How important is it for India to achieve this trade agreement with Peru?

India considers it important to finalize a Free Trade Agreement (FTA) with Peru, as it would strengthen its strategic presence in Latin America and diversify its trade relations in the region. In 2024, bilateral trade between the two countries reached approximately USD 5.7 billion, of which Peruvian exports accounted for about USD 4.7 billion. Particularly noteworthy is the export of gold from Peru to India, which amounted to USD 4.2 billion, reflecting the dynamism and potential of this commercial relationship.

Moreover, Peru is positioning itself as a strategic hub for trade in Latin America, thanks to its privileged geopolitical location and the modernization of its port infrastructure, including the Port of Callao and the Chancay megaport, which will facilitate connections between Asia and the region, optimizing logistics costs and distribution times.

2. Could the FTA that Peru is negotiating with India reshape trade relations in the region?

Undoubtedly, the signing of an FTA between Peru and India has the potential to reshape trade relations in Latin America. By becoming the first country in the region to establish a free trade agreement with India, Peru would consolidate itself as a strategic axis for intercontinental trade in favor of India, as it would provide a tariff-free commercial platform for the rest of the region. Additionally, Peru's strategic location on the Pacific and its modern port infrastructure position it as a key logistics hub for the distribution of goods throughout South America. In short, this agreement would not only strengthen India’s presence in the region but also foster new investments and greater economic integration with Latin American markets.

3. What significant change could there be in the flow of investment and exports?

The implementation of the FTA with India could lead to a substantial increase in Peruvian exports, especially in the mining and agricultural sectors. In 2024, agro-exports to India reached a record USD 30.7 million, with key products including blueberries, avocados, quinoa, asparagus, among others. Furthermore, the agreement is expected to boost new Indian investments in key sectors of the Peruvian economy, such as the automotive and pharmaceutical industries, thereby diversifying the sources of foreign direct investment.

4. Could trade priorities be rearranged?

Indeed, the conclusion of the FTA with India could lead Peru to reorder its trade priorities, placing greater emphasis on Asian markets. This strategy would allow Peru to take advantage of the opportunities offered by the Indian market, with over 1.45 billion inhabitants, and reduce its dependence on traditional markets.

5. In which sectors could Peru be competitive with India?

Peru can be competitive in several sectors in the Indian market, particularly due to its abundant natural resources. The elimination of tariffs and other trade barriers could increase Peruvian exports of mining products, metal-mechanics, fishery products, as well as a wide range of agricultural goods.

6. Which sectors could be highly dynamic for India in Peru?

India’s competitiveness in the automotive, health, pharmaceutical, railway infrastructure, and ship and aircraft construction and repair sectors could be highly beneficial for Peru.

Tourism is another promising sector that could benefit from the FTA. Peru is an increasingly recognized destination, which could generate investment opportunities in the film industry for Bollywood productions and even in the tourism industry itself.

7. To what extent would a trade agreement with India facilitate a more intensive expansion of Peruvian exports?

A trade agreement with India would eliminate tariff and non-tariff barriers, facilitating access for Peruvian products to the vast Indian market. This would allow for a more intensive expansion of Peruvian exports, especially in sectors such as agriculture and mining, where Peru has already proven competitive.

8. Although gold, copper, and silver are the stars of Peruvian exports to India, what other products could also shine brightly?

The high quality of Peruvian agricultural products—such as avocados, blueberries, grapes, maca, cacao, coffee, asparagus, Brazil nuts, citrus fruits, and palo santo—positions them as promising in trade with India. Other minerals like zinc and lead, which are used in the production of inorganic chemicals, also have significant export potential.

9. Is Peru emerging as one of the most attractive countries for Indian investment?

Yes, Peru is positioning itself as one of the most attractive countries for Indian investment. The negotiations of a Free Trade Agreement seek to strengthen economic and commercial cooperation between the two countries. Peru offers investment opportunities in various sectors, including infrastructure such as airports, ports, and railway networks where India can contribute its expertise and technology.

10. Is India a strategic alternative for Peru in the context of the trade war between the United States and China?

In the context of global trade tensions, diversifying trade partners is essential not only for Peru but for many other countries. India presents itself as a strategic alternative, offering a growing market and opportunities to expand Peru's presence in Asia. Signing the FTA with India would strengthen Peru's economic resilience, mitigating risks associated with trade disputes between major powers.

India is intensifying its strategic outreach in Latin America, with Peru emerging as a key partner in this expanding engagement. The two nations are working closely to build a comprehensive economic and diplomatic framework aimed at deepening bilateral relations and enhancing trade and investment flows.

Recognized for its rich natural resources and strategic location on the Pacific coast, Peru is being positioned by New Delhi as a pivotal gateway to Latin America. This focus aligns with India’s broader global strategy to diversify trade relationships and strengthen south-south cooperation. The collaboration between the governments and diplomatic missions of both countries has gained momentum, with ongoing efforts to establish mechanisms that simplify trade procedures, reduce bureaucratic hurdles, and create attractive investment opportunities across sectors such as mining, renewable energy, pharmaceuticals, IT, and infrastructure.

Central to this partnership is the ongoing negotiation of a Free Trade Agreement (FTA), which is expected to be concluded in the first half of this year. The agreement promises to unlock new dimensions in economic cooperation, offering a strong platform for bilateral commerce. If finalized, Peru would become the first Latin American nation to sign an FTA with India, reinforcing its role as a strategic hub for India's regional outreach.

The two sides are also promoting institutional frameworks to facilitate business expansion, encourage mutual investments, and increase connectivity. With Peru’s modern port infrastructure—such as the Chancay megaport and the Port of Callao—serving as logistical bridges to Asia, the country is set to play a crucial role in enhancing India’s trade footprint in Latin America.

In an exclusive conversation with The Pioneer, Ambassador Javier Paulinich shed light on the evolving Indo-Peruvian partnership and the transformative potential of the proposed FTA.

1. It is estimated that the Free Trade Agreement (FTA) with India will be finalized in the first half of this year. How important is it for India to achieve this trade agreement with Peru?

India considers it important to finalize a Free Trade Agreement (FTA) with Peru, as it would strengthen its strategic presence in Latin America and diversify its trade relations in the region. In 2024, bilateral trade between the two countries reached approximately USD 5.7 billion, of which Peruvian exports accounted for about USD 4.7 billion. Particularly noteworthy is the export of gold from Peru to India, which amounted to USD 4.2 billion, reflecting the dynamism and potential of this commercial relationship.

Moreover, Peru is positioning itself as a strategic hub for trade in Latin America, thanks to its privileged geopolitical location and the modernization of its port infrastructure, including the Port of Callao and the Chancay megaport, which will facilitate connections between Asia and the region, optimizing logistics costs and distribution times.

2. Could the FTA that Peru is negotiating with India reshape trade relations in the region?

Undoubtedly, the signing of an FTA between Peru and India has the potential to reshape trade relations in Latin America. By becoming the first country in the region to establish a free trade agreement with India, Peru would consolidate itself as a strategic axis for intercontinental trade in favor of India, as it would provide a tariff-free commercial platform for the rest of the region. Additionally, Peru's strategic location on the Pacific and its modern port infrastructure position it as a key logistics hub for the distribution of goods throughout South America. In short, this agreement would not only strengthen India’s presence in the region but also foster new investments and greater economic integration with Latin American markets.

3. What significant change could there be in the flow of investment and exports?

The implementation of the FTA with India could lead to a substantial increase in Peruvian exports, especially in the mining and agricultural sectors. In 2024, agro-exports to India reached a record USD 30.7 million, with key products including blueberries, avocados, quinoa, asparagus, among others. Furthermore, the agreement is expected to boost new Indian investments in key sectors of the Peruvian economy, such as the automotive and pharmaceutical industries, thereby diversifying the sources of foreign direct investment.

4. Could trade priorities be rearranged?

Indeed, the conclusion of the FTA with India could lead Peru to reorder its trade priorities, placing greater emphasis on Asian markets. This strategy would allow Peru to take advantage of the opportunities offered by the Indian market, with over 1.45 billion inhabitants, and reduce its dependence on traditional markets.

5. In which sectors could Peru be competitive with India?

Peru can be competitive in several sectors in the Indian market, particularly due to its abundant natural resources. The elimination of tariffs and other trade barriers could increase Peruvian exports of mining products, metal-mechanics, fishery products, as well as a wide range of agricultural goods.

6. Which sectors could be highly dynamic for India in Peru?

India’s competitiveness in the automotive, health, pharmaceutical, railway infrastructure, and ship and aircraft construction and repair sectors could be highly beneficial for Peru.

Tourism is another promising sector that could benefit from the FTA. Peru is an increasingly recognized destination, which could generate investment opportunities in the film industry for Bollywood productions and even in the tourism industry itself.

7. To what extent would a trade agreement with India facilitate a more intensive expansion of Peruvian exports?

A trade agreement with India would eliminate tariff and non-tariff barriers, facilitating access for Peruvian products to the vast Indian market. This would allow for a more intensive expansion of Peruvian exports, especially in sectors such as agriculture and mining, where Peru has already proven competitive.

8. Although gold, copper, and silver are the stars of Peruvian exports to India, what other products could also shine brightly?

The high quality of Peruvian agricultural products—such as avocados, blueberries, grapes, maca, cacao, coffee, asparagus, Brazil nuts, citrus fruits, and palo santo—positions them as promising in trade with India. Other minerals like zinc and lead, which are used in the production of inorganic chemicals, also have significant export potential.

9. Is Peru emerging as one of the most attractive countries for Indian investment?

Yes, Peru is positioning itself as one of the most attractive countries for Indian investment. The negotiations of a Free Trade Agreement seek to strengthen economic and commercial cooperation between the two countries. Peru offers investment opportunities in various sectors, including infrastructure such as airports, ports, and railway networks where India can contribute its expertise and technology.

10. Is India a strategic alternative for Peru in the context of the trade war between the United States and China?

In the context of global trade tensions, diversifying trade partners is essential not only for Peru but for many other countries. India presents itself as a strategic alternative, offering a growing market and opportunities to expand Peru's presence in Asia. Signing the FTA with India would strengthen Peru's economic resilience, mitigating risks associated with trade disputes between major powers.