India and Chile trade under an expanded Preferential Trade Agreement covering 2829 tariff lines

Background

India's Embassy in Santiago records Chile as the 5th largest trading partner of India in the LAC region. An Agreement on the expansion of the India-Chile Preferential Trade Agreement was signed in New Delhi on 6 September 2016, increasing the scope of the agreement from about 474 tariff lines to 2829 tariff lines, and the expanded preferential trade agreement came into force in May 2017. The Double Taxation Avoidance Agreement between India and Chile was signed on 9 March 2020 and came into effect from 19 October 2022 after ratification by both countries. India's exports to Chile include motor vehicles and cars, drug formulations, chemicals, products of iron and steel, auto components, leather goods and footwear of leather. Indian investment in Chile is estimated at about US$620 million, and Chilean investment in India at US$ 118 million. The two countries have signed agreements and memoranda covering Science and Technology, Antarctica, Defence, Air Services, Agriculture, New and Renewable Energy, Education, and Geology and Mineral Resources. Chile has articulated its support for India's claim to a permanent seat in the UNSC, 25 slots are offered to Chilean civilian candidates every year under ITEC, and Chile has declared November 4 as National Yoga Day.