India is hopeful of securing access to Peruvian mines, as part of the free trade agreement (FTA) being negotiated, for an assured supply of critical minerals such as copper, zinc, lithium, molybdenum and rare earth elements, essential for its green energy transition and manufacture of electrical vehicles, sources said.

New Delhi has submitted a non-paper to Peru listing its areas of interests and its sensitivities, and the two sides are scheduled to meet in July-end for the next round of FTA negotiations, a source tracking the matter told businessline.

“If India is able to secure mines as part of the India-Peru FTA, it will ensure a permanence of term for the minerals and supplies will not be hit by policy changes,” the source explained.

India is not looking to secure a particular mineral, but a whole range of elements, including copper and lithium and also rare earth, which are all essential in green energy transition, including manufacturing of EVs, the source added.

Exports to Peru

India’s exports to Peru in FY25 increased 9 per cent to over $1 billion, while its imports increased 60 per cent to about $5 billion. 

An FTA with Peru will help India increase exports of traditional items, such as automobiles, cotton yarn and pharmaceuticals, and enable it to secure a foothold in the Latin American market.

With FTA talks also going on with Chile, New Delhi is hopeful that the efforts would help the country diversify by exporting more to the region.

In the non-paper submitted to Peru, India has pointed out that it had sensitivities in the agriculture sector, which is largely protected for ensuring food and livelihood security of Indians, the source said. Peru is interested in exporting more of items, such as avocados, grapes, blueberries, coffee, and cocoa.

import duties

Peru would also hope to export more gold to India, mined in abundance in the country and its primary export. However, India may not be ready to substantially bring down import duties as concessions extended to the UAE on precious metals resulted in misuse by importers.

“The non-papers broadly lays down the expectations and the redlines so that time is saved during the negotiations. The actual give and take would happen when negotiators meet,” the source said.

Peru can play a pivotal role in reducing India’s dependence on import of lithium from Asian countries, leading to greater diversification in sourcing inputs for Advanced Chemistry Cells (ACCs) manufacturing, according to India-Peru Report 2025 compiled by industry body CII. “Cooperation in joint mining of critical minerals will aid downstream industries in the broader EV manufacturing sectors of India and Peru,” it said.

Published on June 17, 2025