Scaling New Heights in India- Peru Business Relations

The year 2025 is instrumental in the relationship between India and Peru, as both countries push for a Free Trade Agreement. Originally launched in 2019, the negotiations had come to a halt due to disruptions caused by the COVID-19 pandemic, but resumed in 2023 and have gained momentum since then with the seventh round concluding just last year. The FTA will reduce barriers, enhance market access across key sectors and initiate discussions on duty concessions. 

Confederation of Indian Industries (CII) in its report From Andes to Himalayas Scaling New Heights in India- Peru Business Relations, highlights the critical juncture the countries are currently at and how their relationship can help build economic resilience and regional integration. 

Bilateral trade between the two nations surged to USD 5.98 billion in 2024-25, up from USD 2.34 billion in 2019–20, reflecting a strong compound annual growth rate (CAGR) of 20.64%. According to the Annual Report, 2023-24 by the Department of Commerce, Peru accounts for 15.42% of India’s total imports from LAC (Latin American Countries). The top export items to Peru include vehicles, cotton, pharmaceuticals, nuclear reactors, organic chemicals, rubber and copper. Whereas India imports natural or cultured pearls, ores, aluminium, salt, mineral fuels, edible fruit and man-made staple fibres. Companies from both the countries also have significant presence in each other’s market. This not only signifies the strategic importance of trade relations between the two countries, but also the potential to expand business relations and economic cooperation. 

Benefits of an FTA with Peru 

Currently, Indian exporters face major challenges related to Non-Tariff Measures (NTMs) in Peru. The most frequently applied NTMs on Indian exports are Sanitary and Phytosanitary (SPS) measures and Technical Barriers to Trade (TBT), which relate to product safety, health standards, labelling requirements, and other regulatory compliance issues. Ongoing FTA negotiations can help address the issue of NTMs and also unlock the full potential of India’s export competitiveness in the Peruvian market.

As the FTA will also address movement of people across the two nations, it can help improve mobility and deepen economic cooperation between the countries. 

As the world’s second-largest copper exporter, Peru offers substantial opportunities for India’s mining industry and rising copper demand. Peru’s lithium reserves have also emerged as a game-changer. The discovery of high-grade lithium also offers a significant opportunity for India’s EV and solar power sectors, as the country seeks to secure essential resources for battery storage. This can also help India achieve its renewable energy target of 500 GW by 20230, while shifting to a cleaner and greener future. 

India’s robust IT industry can play a key role in supporting Peru’s digital transformation initiatives. Collaborations in software development, IT services, and digital infrastructure can significantly enhance Peru’s technological landscape while creating market opportunities for Indian firms. India can also aid Peru in large infrastructure projects and provide expertise in developing inclusive and sustainable Digital Public Infrastructure (DPI). 

Furthermore, both the countries can also expand their areas of collaboration to include tourism, IT training, affordable healthcare, finance, telecommunications, e-commerce and much more. 

As the government continues to invest significantly in the relationship, the role of other stakeholders is just as crucial. CII, with its deep commitment to help Indian companies, has been actively involved in organising the India-LAC Conclave, an annual event that brings together all LAC countries, including Peru. It has also helped organise interactive sessions with Diplomats from Pacific Alliance Countries (Colombia, Chile, Peru, & Mexico) and explore trade prospects. 

Despite the significant geographical distance, both the countries are increasingly interconnected through global value chains, international trade routes, technological collaboration and mutual economic interests. Through closer cooperation and familiarity between the countries, global value chains and information networks can be expanded even further.