In 2023, bilateral trade between India and Peru reached $3.12 billion, with notable exchanges in gold, copper, automobiles, motorcycles, and pharmaceuticals. The proposed Free Trade Agreement (FTA), expected to be finalized by early 2025, aims to boost trade volume and diversify economic interactions between the two nations.
Ambassador Javier Manuel Paulinich highlighted the depth of commercial ties, noting that India exported $865.91 million worth of goods to Peru, primarily comprising automobiles, motorcycles, and pharmaceuticals. Conversely, Peru’s exports to India amounted to $2.55 billion, predominantly gold and copper.
The gold trade significantly impacts both economies. Between 2014 and 2023, Peru exported 357.23 tons of gold to India, with notable amounts destined for Kundan Care Products. In 2022 alone, Peru’s gold exports to India were valued at $1.9 billion, supporting Peru’s mining industry and meeting India’s high domestic demand for jewelry and investment.
Bilateral talks concluded their seventh round on April 11, 2024, with the next round scheduled for later this year. The FTA aims to create a favorable environment for increased commerce and investments by reducing barriers and facilitating smoother transactions.
Additionally, Peru and India are exploring deeper cooperation in defense and space, with shared interests in disaster risk management, cyber attack prevention, and health. Peru’s forthcoming instant payment system, developed with NPCI International Payments Limited, exemplifies this growing collaboration, aiming to enhance financial inclusion and efficiency.
Source: Financial Express
