India-Latin America Trade Pacts Key to Critical Mineral Security: FIEO Chief

Trade pacts with Latin America can help meet India's growing critical mineral needs: FIEO Chief

New Delhi, June 24

"The government is also engaged in upgrading the India-Chile PTA to a comprehensive economic partnership. We are almost ready to sign an FTA with Peru also and our negotiations are going in expanding the India-Mercosur PTA also, bringing more countries into that and expanding the scope also," Sahai told ANI.

Speaking on the sidelines of LAC FIRST: India-Latin America & Caribbean Business & Diplomatic Conference, he said the government is exploring reliable sources of supply in terms of critical minerals and that Latin American countries are among the regions being closely evaluated.

Responding to a question on lithium imports from Argentina, he said the region remains an important partner in India's efforts to strengthen resource security.

"The government is exploring the reliable supply for the critical minerals. Latin American countries are definitely on our radar. We are also looking into some other countries also and these countries are also looking into new investment," he said.

"Basically, the idea of the event is to look into engaging with the Latin American countries. We have a Focus LAC programme and the government is looking into exploring new opportunities. The trade has increased but the potential lies there and probably this kind of conference will help us to identify the potential," he said.

Sahai said changing geopolitical dynamics have underscored the importance of creating secure and diversified supply chains, particularly for strategic resources such as critical minerals. He noted that Latin American countries, rich in metals and minerals, could emerge as important partners for India in this regard.

"We need to increase our basket of trade also with the countries and looking into the new geopolitical challenges we are looking into a new alignment for the supply chain. Latin American countries can be part of the supply chain. The world is looking into a safe and secure supply chain and Latin America and India can work together for developing such an ecosystem," he said.

Beyond minerals and commodities, Sahai said India is seeking to broaden its engagement with the region through services and technology partnerships.

He pointed to India's success in digital public infrastructure (DPI) and said Latin American countries could benefit from India's experience.

"Services will be also one option. People have talked about developing the digital public infrastructure where India has taken a lead and probably Latin American countries can learn and scale after learning from India," he said.

Sahai also highlighted growing interest among Indian companies in investing in Latin America. He said businesses are exploring opportunities to manufacture products in the region, utilise locally available raw materials and metals, and export finished goods to international markets.

"Indian companies are also looking into investment because in many cases the products can be manufactured in those countries. In many cases they can import the materials and metals directly, convert into finished product and export to other countries," he said.

On trade flows, Sahai said India's exports to the Latin America and Caribbean (LAC) region stood at USD 21.5 billion in calendar year 2025, while imports were around USD 32.5 billion, taking total bilateral trade to about USD 54 billion.

"As of now, if you are looking into our export to LAC in calendar year 2025, it was USD 21.5 billion and import from them around USD 32.5 billion. So it's a USD 54 billion imports and exports with them, but when you are looking into the appetite of the market, I think we are nowhere near the potential," he said.

Sahai said India has already established a strong presence in automobiles and auto components, pharmaceuticals, chemicals, machinery and electrical electronics in the region, but stressed that significantly greater opportunities remain untapped.

"I think we are nowhere near the potential. We have done reasonably well in automobile and auto components, pharmaceuticals, chemicals, probably in machinery and electrical electronics. Every market is open for us. We have the capability and the time has come that we can put the potential into opportunity," he said.

Addressing challenges in expanding trade, Sahai said distance and language should no longer be viewed as barriers. He added that rising metals and minerals prices could increase demand in Latin American economies and create additional opportunities for Indian exporters.

"I don't think prevailing challenges. It's basically a mental block. Today, distance and language are no longer a barrier," he said.

Commenting on the proposed US-Iran agreement, Sahai said it was premature to assess its impact on global trade and economic stability, noting that more clarity would emerge once the agreement is formally concluded.

"I personally feel that we have to live in an era of unended war. I am not sure whether we will be back to normalcy because it will take little more time. Let us first see how the agreement is finally concluded. Once the agreement is concluded, we will have greater certainty on that part," he said.

— ANI