India And Peru To Resume Free Trade Talks In June With Copper Supply In Focus

India and Peru are set to resume negotiations on a Free Trade Agreement in June 2026, with both sides aiming to conclude the deal by the end of the year. Copper and critical minerals are central to the talks, reflecting India’s urgent need to secure long-term supply chains for its fast-growing economy.

India and Peru are preparing for the next round of discussions on a proposed Free Trade Agreement, scheduled for June. Peru’s ambassador to India, Javier Paulinich, confirmed that negotiations will resume next month, with the possibility of a deal being signed before the year’s end.

The talks are expected to cover a wide range of trade issues, but a particular focus will be placed on critical minerals, especially copper, given Peru’s position as the world’s third-largest producer.

Peru produced approximately 2.7 million metric tons of copper in 2024 and attracted nearly USD 4.96 billion in foreign investment in the sector. India’s Hindalco Industries is reportedly exploring copper purchases from Peru, with negotiations underway.

This aligns with India’s broader policy of encouraging its mining companies to invest overseas to secure supply chains and mitigate potential disruptions. The government has warned that India may need to source between 91% and 97% of its copper concentrate requirements from abroad by 2047.

India’s copper imports rose by 4% to 1.2 million metric tons in the fiscal year ending March 2025. Demand is projected to climb sharply, reaching 3 to 3.3 million tons by 2030 and between 8.9 and 9.8 million tons by 2047. As the world’s second-largest importer of refined copper, India’s dependence on overseas supplies is expected to intensify, making agreements with resource-rich countries like Peru strategically vital.

Beyond copper, the Free Trade Agreement is expected to address tariff reductions, non-tariff barriers, and investment flows across sectors such as agriculture, pharmaceuticals, IT, and clean energy. Bilateral trade between India and Peru has already grown significantly, doubling in five years to reach USD 4.03 billion in 2023–24.

However, India runs a trade deficit due to high gold imports from Peru, which account for nearly 80% of its total imports from the country. Tariff concessions on gold remain a sensitive issue under negotiation, as even minor reductions could substantially increase imports and affect India’s domestic market.

Peru’s exports to India include copper, gold, zinc, silver, molybdenum, and agro-products such as blueberries, avocados, quinoa, asparagus, and grapes. India’s exports to Peru are led by pharmaceuticals, automobiles, IT solutions, and industrial machinery. Addressing logistical challenges, such as limited direct shipping routes and restrictive work permit regulations, will be critical to maximising the potential of the agreement.

The June talks will therefore be pivotal, not only for trade diversification but also for India’s long-term economic security. With copper demand set to surge due to electrification and energy transition, securing stable supply chains through agreements with resource-rich partners like Peru is becoming a strategic necessity.

Reuters

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India Accelerates LNG Diversification From US, Australia, Africa, And Russia To Sidestep Gulf Risks

India is accelerating a strategic shift in its liquefied natural gas (LNG) procurement to reduce dependence on the Gulf region amid escalating tensions in West Asia. The conflict has disrupted supplies, particularly from Qatar, which provides 40 to 47 per cent of India’s annual LNG imports. 

Production halts at Qatar’s Ras Laffan facility and instability in the Strait of Hormuz have exposed vulnerabilities in India’s energy security, prompting New Delhi to overhaul its national energy strategy.

For decades, the Gulf has anchored India’s energy matrix, with Qatar alone supplying nearly half of its LNG needs. However, recent events have highlighted this reliance as a major strategic liability. In response, India is fast-tracking a diversification programme to build a more balanced LNG portfolio, ensuring long-term national security and resilience against future disruptions.

Central to this pivot are expanded supply chains from the United States, Australia, and African nations, alongside Russia, Norway, Canada, Peru, Angola, and Nigeria.

To avoid the volatile Strait of Hormuz, shipments from the US will leverage routes like the Panama Canal, offering safer alternatives. Australia has emerged as a priority due to its shorter and more secure shipping routes, minimizing exposure to regional instability.

This realignment prioritises supply security over cost in the short term, as Indian importers such as GAIL, Petronet LNG, and Indian Oil turn to the spot market. Spot prices have spiked to approximately USD 24 to 25 per million British thermal units (MMBtu), imposing a financial premium that is nonetheless deemed essential for continuity. Domestic gas and imported LNG are now strictly allocated to critical sectors, including household piped natural gas (PNG), compressed natural gas (CNG) for transport, and fertilizer production.

Beyond sourcing diversification, the government is enhancing the physical security of energy supply lines. Engagements with global suppliers include exploring safer shipping routes and potential naval escorts for LNG vessels in high-risk areas.

India is also deepening ties with major traders like Total Energies, Vitol, and Trafigura, as well as state firms such as Algeria’s Sonatrach and the UAE’s ADNOC, to strengthen its supply network.

These measures reflect a comprehensive response to the crisis, blending immediate mitigation with a forward-looking strategy. The pivot underscores India’s recognition that over-reliance on any single region poses unacceptable risks to its economic and strategic interests.

By broadening its LNG footprint, New Delhi aims to fortify resilience against future disruptions and safeguard national energy security.

News18

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India Presses For Diversified Critical Minerals Partnerships At Minerals Ministerial, With Talks Focussed On De-Risked Supply Chains

Indian External Affairs Minister S Jaishankar held a series of bilateral meetings on the sidelines of the Critical Minerals Ministerial in Washington.

Notably, he met Canadian Foreign Minister Anita Anand and Peruvian Foreign Minister Hugo de Zela, with both engagements focusing on deepening and expanding cooperation between their respective countries and India.

In his X posts, Jaishankar conveyed that it was “great to see FM Anita Anand of Canada today” and that their discussions aimed at taking bilateral ties forward.

He also noted his conversation with Peru’s Foreign Minister de Zela, stating that there was agreement to deepen cooperation between India and Peru, underscoring a broader trend of India diversifying its diplomatic and economic partnerships beyond traditional alignments.

The meetings occurred as part of India’s broader participation in the Critical Minerals Ministerial, a gathering designed to advance international cooperation on supply chains for essential minerals. Jaishankar emphasised the need for structured international cooperation to de-risk critical mineral supply chains and warned against excessive concentration, which he described as a major global risk. 

He highlighted India’s own initiatives to bolster resilience in this space, including the National Critical Minerals Mission, the Rare Earth Corridors, and efforts to promote responsible commerce. He also signalled India’s support for the FORGE initiative on critical minerals, which seeks to accelerate collaboration in research, development, and manufacturing within the minerals sector.

In his public remarks on X, Jaishankar referred to the importance of diversifying supply chains for rare earth elements and other critical minerals such as lithium, cobalt, and nickel. The aim, he indicated, is to reduce overreliance on a single country for processing and mining, thereby enhancing global resilience. 

His statement aligned with India’s broader aim of strengthening supply chain diplomacy through multi-nation cooperation and regional partnerships, a theme that has gained traction among participating countries at the ministerial.

The discussions with Anand and de Zela thus fed into a wider narrative about cooperative measures to secure and diversify mineral supplies while addressing the environmental and governance considerations that accompany mineral extraction and processing.

Jaishankar’s engagements also touched on wider economic and strategic themes. Ahead of the ministerial, he shared photographs from meetings with other foreign ministers, including those from the Netherlands, Italy, Malaysia, Bahrain, and Mongolia, signalling a busy diplomatic program and an intention to foster a diverse network of partnerships.

The ministerial itself attracted delegations from more than 50 countries, with the European Union viewed as a pivotal forum for advancing supply chain diplomacy. In his messages, Jaishankar framed the discussions within a context of global supply chain resilience, partnership diversification, and collaborative approaches to critical minerals governance.

Beyond discussions on minerals alone, there was anticipation around Prime Minister Mark Carney’s scheduled visit to India in early March. Reports suggested that the visit could yield deals related to uranium, energy, minerals, and artificial intelligence, with trade occupying a central place on the agenda.

While formal announcements were limited at the time, sources within India’s Ministry of External Affairs indicated that trade would be a key focus of Carney’s trip, alongside broader cooperation on energy, minerals, and technology sectors. The exchanges during the ministerial therefore occurred against a backdrop of evolving strategic and commercial interests, with both sides signalling a readiness to pursue tangible outcomes in the immediate and medium term.

Jaishankar’s Washington engagements represented a concerted effort to broaden India’s strategic partnerships in the critical minerals domain, while also underscoring the importance of diversified and de-risked supply chains.

The conversations with Canada and Peru, coupled with his broader participation in ministerial discussions, reflected India’s aim to position itself as a key player in global mineral security and in the architecture of supply chain resilience.

The statements issued through X and subsequent media interactions reinforced a narrative of pragmatic collaboration, structural cooperation, and a forward-looking agenda on critical minerals governance and trade.

Based On ANI Report

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Why India Is Rushing To Seal New Trade Deals With Peru & Chile As Trump’s Tariffs Bite

India is moving swiftly to finalise new trade agreements with Latin American nations, notably Peru, Chile, and Mexico, as escalating U.S. tariffs strain its export-dependent sectors.

The recent tariff measures imposed by President Donald Trump’s administration have disrupted access to the American market, prompting New Delhi to recalibrate its trade strategy.

The focus is not just on offsetting immediate losses but on achieving deeper structural resilience against external economic pressures.

Negotiations with Peru and Chile have reached an advanced stage, with both sides aiming to close talks within months. These agreements are expected to cover goods, services, and investment flows, offering Indian exporters preferential access to high-value markets in South America.

For Peru, which supplies copper, zinc, and silver, India’s fast-growing industrial demand offers reciprocal benefits. In return, India seeks to expand its footprint in pharmaceuticals, engineering goods, and textiles, which have shown considerable growth potential in the Andean region.

Chile remains a crucial partner due to its stable economy and rich reserves of lithium and copper — minerals that are vital for India’s green energy and battery manufacturing goals.

A renewed FTA with Chile, building on the 2017 Preferential Trade Agreement, could allow deeper tariff reductions on nearly 90 percent of traded goods. This would help India secure critical mineral supply chains and reduce its dependence on traditional partners such as China and Australia.

The inclusion of Mexico in the list of target nations underlines India’s broader strategic intent. Mexico’s industrial capacity and proximity to the U.S. market make it a natural node for Indian manufacturers seeking to hedge tariff risk.

By engaging Mexico, India aims to integrate more fully into North and Latin American value chains, which are being reshaped under new U.S. trade policies. Such partnerships also extend India’s geopolitical reach, creating south-south linkages that complement its growing role in the Global South.

Indian policymakers view Latin America as a long-term trade and investment frontier. The region’s combined GDP exceeds 5 trillion dollars, and its demand for affordable pharmaceuticals, processed food, and affordable engineering goods matches India’s export strengths.

Although logistics costs remain a challenge, the ongoing push to develop direct shipping routes and banking facilities is expected to lower trade friction over time.

In parallel, India is intensifying cooperation with CELAC (Community of Latin American and Caribbean States) to forge a collective framework that supports diversified supply chains. The emphasis is on technology transfer, digital cooperation, and sustainable agriculture, areas where both sides can benefit from mutual expertise.

The government’s proactive outreach underlines its intent to ensure that India does not remain overexposed to Western markets or protectionist policy shocks.

Analysts believe that if the FTAs with Peru and Chile are signed by early 2026, they could together re-channel nearly 20 percent of exports that were originally bound for the United States.

This would not only stabilise India’s external trade balance but also reinforce its position as a reliable partner for the Latin American bloc. The policy signals a structural realignment of India’s trade diplomacy — from dependency to diversification — driven by both necessity and opportunity.

Based On MINT Video Report

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Sweden Seeks Green Light For Fighter Jet Sale To Peru

Sweden has taken a major step toward expanding its defence industry presence in Latin America by formally requesting parliamentary approval for a government-to-government sale of up to 12 Saab JAS 39 Gripen E/F multi-role fighter jets to Peru.

This proposed package, valued at approximately $2 billion, also includes unspecified air defence systems and is designed to address Peru’s urgent need to modernise its ageing air force, which currently relies on outdated Mirage 2000 and MiG-29 aircraft.

The Swedish government’s proposal, submitted as part of its 2025 supplementary budget, aligns with Peru’s preference for a direct state-backed procurement process. If approved by the Swedish Parliament—a move widely expected given Sweden’s robust support for defence exports—the deal would enable a formal intergovernmental agreement, with Sweden overseeing procurement and delivery, and the costs covered by sale revenues.

The Peruvian government has already allocated $2 billion through its Public Debt Law for the first batch of 12 aircraft, as part of a broader $3.42 billion program to acquire a total of 24 new fighter jets, with a second phase planned for 2026.

The Gripen E/F stands out for its advanced avionics, AESA radar, electronic warfare capabilities, and cost-effective operation. Its adaptability to harsh environments and ability to operate from short or improvised runways make it particularly suitable for Peru’s diverse geography. The aircraft is positioned as a top contender against rivals such as the U.S.-made F-16 Block 70 and France’s Rafale, which were also shortlisted by the Peruvian Air Force.

Sweden’s offer goes beyond just aircraft, incorporating technology transfer and potential local co-production, similar to the model used in Brazil’s Gripen program. This could provide a significant boost to Peru’s domestic defence industry by creating jobs and building technical expertise. If the deal proceeds, initial deliveries could begin between 2028 and 2030, with primary production in Sweden and possible assembly or maintenance support from Brazil’s Embraer-Saab hub, fostering regional cooperation among Gripen operators.

Geopolitically, the proposed sale signals a shift in Latin America’s defence procurement landscape, which has traditionally favoured U.S.-sourced aircraft. With Brazil and Colombia already selecting the Gripen, Peru’s move could further solidify Saab’s dominance in the region and enhance interoperability among allied air forces.

However, the deal also faces potential obstacles, such as U.S. export controls related to the Gripen’s GE engine and possible reactions from other global actors with interests in Peru.

Sweden’s proposed Gripen sale to Peru is a strategic initiative that promises to modernize Peru’s air force, strengthen Sweden’s defence export footprint, and reshape regional security dynamics. It reflects both countries’ ambitions: for Sweden, to expand its influence and industrial partnerships in Latin America; for Peru, to secure advanced air combat capabilities and greater autonomy in defence procurement.

Agencies

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Indian Team In UK For Advanced Negotiations On India-UK Free Trade Agreement

New Delhi: Indian negotiation team is in United Kingdom for advanced stage of negotiations for the India-UK Free Trade Agreement (FTA). According to the government sources, both countries have made significant progress following the completion of the 14th round of negotiations in January 2024.

Recently a team from the UK visited India between 5th to 7th March to continue the advanced discussions on outstanding matters. Government sources said while most challenging issues in finalizing the agreement are nearing resolution, a few key priorities are being addressed to achieve a balanced outcome. Other than United Kingdom (UK), India is actively engaged in negotiations also with the European Union (EU), the Peru to strengthen trade ties and foster economic cooperation.

A senior government official told ANI, the India-EU Free Trade Agreement (FTA) have completed the 7th round of negotiations in February 2024. Now both sides are making efforts to address key issues through meetings and also with virtual inter-sessional meetings before the commencement of the 8th Round, scheduled for May 2024 in Brussels.

Additionally, India is also in negotiations with Peru for a bilateral trade agreement. Both countries are engaged to sign the trade deal. During the recent 7th round of talks held in New Delhi from 8th to 11th April, both sides covered various chapters, including Trade in Goods, Trade in Services, Rules of Origin, and Dispute Settlement. The commerce ministry statement says that significant progress has been achieved in areas such as Customs Procedures and Trade Facilitation.

Now the next round of negotiations between India and Peru is expected in June. Over the past two decades, bilateral trade between India and Peru has witnessed remarkable growth, increasing from US$66 million in 2003 to approximately US$3.68 billion in 2023.

As the negotiations are progressing, stakeholders from both sides remain optimistic about the prospects of deepening economic cooperation and unlocking new opportunities for trade and investment in their regions.

This report is auto-generated from a syndicated feed

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EAM Jaishankar Begins Engagements At Munich Security Conference, Meets His UK, Peru Counterparts

EAM Jaishankar with his UK counterpart, David Cameron

Munich: External Affairs Minister S Jaishankar on Friday began his engagements on the sidelines of the Munich Security Conference by meeting United Kingdom Foreign Secretary David Cameron and Peru Foreign Minister Javier Gonzalez-Olaechea.

In the meeting, EAM Jaishankar and his UK counterpart discussed India-UK bilateral cooperation and global and regional issues.

Taking to X, EAM Jaishankar shared details of the meeting saying, "Started my engagements at #MunichSecurityConference by meeting UK Foreign Secretary @David_Cameron. A good discussion on our bilateral cooperation as well as global and regional issues. Also exchanged views on the cricket match underway."

Additionally, EAM Jaishankar also met with Peru Foreign Minister Javier Gonzalez Olaechea and spoke about the significant reforms in the United Nations and India-Peru economic cooperation.

"Good to meet Peru Foreign Minister Javier Gonzalez-Olaechea. Spoke about UN reform and our economic cooperation," Jaishankar posted on X.

The meetings come as EAM Jaishankar reached Germany for the 60th Munich Security Conference (MSC) taking place as an in-person event from February 16 to 18, 2024, at its traditional venue, the Hotel Bayerischer Hof in Munich, an official statement said.

This year's conference is being held under the chairmanship of the German Ambassador to the US, Christoph Heusgen.

As per the statement, "the MSC will once again welcome a series of high-ranking international decision-makers and experts, including heads of state and government, ministers, and diverse voices from international organizations, civil society, the private sector and the media."

Meanwhile, US State Department said that United States Secretary of State Antony Blinken will meet with Chinese Foreign Minister Wang Yi at the Munich Security Conference on Friday.

The planned meeting on the sidelines of the security conference (February 16-18) is part of efforts to increase high-level engagements after months of heightened tensions over issues ranging from a suspected Chinese spy balloon and Taiwan to trade restrictions, according to Kyodo.

Secretary Blinken will participate in the conference, which begins today, as part of the US delegation led by Vice President Kamala Harris, who will deliver a major policy speech at the event.

This report is auto-generated from a syndicated feed

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Soft Power To Strategic Presence: Why India Is Giving A Renewed Push To Ties With Latin America

Latin America and The Caribbean region had remained out of sight for long, but its relations with India have gained traction since the beginning of this century and a new thrust in recent years

Latin America may be on the other side of the globe, but not out of sight from the heights of Raisina Hills. This is evident from the fact that External Affairs Minister Dr S Jaishankar visited four Latin American countries in a row this year — Guyana, Panama, Colombia and the Dominican Republic. The nine-day visit in April was his first as EAM in Latin America and the Caribbean this year. He had last year travelled to three Latin America and The Caribbean (LAC) members: Brazil, Argentina and Paraguay.

It would not be wrong to say that this region had remained out of sight in the corridors of South Block for long, but has gained traction since the beginning of this century and a new thrust in recent years. These efforts are yielding results and according to the EAM, Indian businesses have till now invested over USD 15 billion in the LAC region. Though India-LAC bilateral trade grew to USD 40 billion in 2022 from USD 29 billion in 2018, but compared to China (USD 482 billion in 2022), the Indian-LAC trade is far behind.

Perhaps, the distance and the transport cost of exportable goods to the small and big countries of the region factored prominently for the Ministry of External Affairs mandarins, and hence the lesser push to the Indian business community to register their footprint, and the lesser diplomatic presence so far. The MEA is now taking care of this. To increase the footprint in LAC countries, India organises an India-LAC conclave supported by the Ministry of External Affairs. This year also, the Confederation of Indian Industry (CII) hosted a three-day India-LAC business conclave in early August, in which 11 LAC countries were represented and the conclave was inaugurated by Jaishankar.

There are 33 countries in ‘Latin America and Caribbean’, which include Mexico and the countries from Central America, South America and the Caribbean islands , with a rough population of over 650 million. As China has projected its Belt and Road Initiative as a key platform for expanding its influence and connectivity in the region, China’s strategic link to the region is mainly based on promoting its economic interests and hence China intends to develop strategic partnership with the region by engaging in infrastructure and energy linkages.

India, meanwhile, has a natural bonding and convergence of interests on key global issues with Latin America and Caribbean countries, India is banking on its soft power like culture, heritage, philosophy ,yoga, ayurveda, films etc , which is very popular because of large number of people of Indian origin who populate mostly the Caribbean region. India used to treat LAC as the last frontiers of its foreign policy, but in fast changing geo-political equations, India needs to expand its influence in the region with greater focus, make visible economic presence and enhance people to people exchanges, which will build a bridge between India and LAC.

India Has The Potential To Enter Latin America And The Caribbean Market

To showcase India in a better manner, India needs to open it’s mission in all of 33 LAC members, but presently 17 of the countries do not have Indian missions. Missions have a significant role in strengthening trade and economic relations and promoting the country's political interests especially in garnering support in UN for India sponsored resolutions. The missions also have a role in better explaining India’s views on global and regional issues. They also have a role in supporting Indian companies wanting to enter the LAC region, with catalogues and policies of the host governments.

To develop a deeper interaction with the Latin American region, India has to deal with four major players — CARICOM (Caribbean community), SICA (Central American Integration system), SELA (Latin American Economic System) and the Permanent Secretariat of the General Agreement on Central American Economic Integration (SIECA). The four are the founding observers in the Association of Caribbean States.

CARICOM or the Caribbean Community comprises 15 member states Antigua and Barbuda, Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saint Kitts and Nevis, Saint Lucia, Saint Vincent, and ‘Trinidad and Tobago’ and one dependency.

Some of these are cricket-playing countries, and hence well known in India. But Indians are not very familiar with the intricacies of these groupings, which are actually heavily populated with the people of Indian origin — around 2.5 million. They want to reconnect with their ancestral lands. Their emotional bond towards India needs to be exploited for developing deeper people-to-people connect that will help in transforming better bilateral diplomatic relations. Of late, the geopolitical significance of these small island states has increased tremendously, as they not only form a strong collective vote bank in the United Nations, they can be tapped for increasing diplomatic clout in the UN. India has received significant support from LAC for the Permanent seat in the United Nations Security Council. The group of LAC also supports India on many issues in the United Nations.

Most Latin American countries are not involved in any major conflict, and hence there is not much requirement for defence products. But small arms and light helicopters are in demand to control criminal activities. Large countries like Brazil have made good progress in high-end products like small passenger aircraft, but mostly dependent on imports for other arms. India has imported Embraer aircraft from Brazil for converting them to early warning aircraft. India has been able to make an entry in the defence sector in LAC, but not in a big way. Ecuador had purchased four Advanced Light Helicopters almost a decade and a half ago in 2008, but its image was dented due to some crashes. Ecuador cancelled export orders for seven more DHRUV Helicopters in 2015.

Due to the prevalence of drug mafia in Latin American countries, they need air assets to deal with them in the dense forests. Of late, these countries have reduced their defence business with the US due to tough competition from China. But India has the potential to enter the market with its niche defence products like night vision glasses, cyber security, patrol vessels, body armour etc. Indian manufacturers specialising in security equipment and technology have good potential in increasing their footprint in the LAC markets. To mark its defence footprint in the region, India has been undertaking military exercises with Brazil, Chile and Peru.

China is a competition for India too. But though it faces formidable challenges from the Dragon nation, it is gradually breaking the barriers. According to Jaishankar, "India is successfully implementing projects in the region to develop critical infrastructure, including in power transmission. There have been some notable contracts in roads, oil and gas, renewable energy, and are now seeing beginnings of defence.” These are positive trends and are expected to take India-LAC relations to newer heights in future.

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India's Envoy To Peru Vishvas Vidu Sapkal Also Appointed Ambassador To Bolivia

New Delhi: Vishvas Vidu Sapkal, India's Ambassador to Peru has been concurrently accredited as the next Ambassador to Bolivia.

Vishvas Vidu Sapkal is an Indian Foreign Service Office of 1998 batch. He is expected to take up the assignment shortly.

Ministry of External Affairs in the press release said, "Shri Vishvas Vidu Sapkal (IFS: 1998), presently Ambassador of India to the Republic of Peru, has been concurrently accredited as the next Ambassador of India to the Plurinational State of Bolivia, with residence in Lima."

In his previous assignments, Vishvas Vidu Sapkal served as High Commissioner of India to Fiji, Cook Islands, Kiribati, Nauru, Tonga, Tuvalu and Vanuatu, and Consul General of India in Russia's Petersburg. He has also served in different capacities in Russia, Armenia, Egypt and the US, according to his profile mentioned on Indian Embassy in Peru's website.

He has done special assignments at India Africa Forum Summit as Director (IAFS) in New Delhi in November 2015, Chief Coordinator for the 12th World Hindi Conference, Fiji in February 2023, Chief Liaison Officer - 3rd Summit of “Forum for India-Pacific Islands Cooperation (FIPIC) held in Papua New Guinea in May 2023.

In the Ministry of External Affairs, Vishvas Vidu Sapkal worked in Northern Division, MER Division and Finance Division in various capacities. He was Joint Secretary (BIMSTEC, SAARC and NALANDA) in May-November 2019. He was Joint Secretary (South) from November 2019- June 2023. He also worked as Joint Secretary (Indo-Pacific) from August 2021 to January 2022.

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Peru Compliments India For Giving Voice To Global South In G20

New Delhi: Peru on Saturday complimented India for giving voice to the South in the G20 and inviting President Dina Boluarte to participate in the Voice of Global South Summit, held earlier this year, according to a Ministry of External Affairs press release.

On Saturday, the 2nd India-Peru Joint Commission Meeting was co-chaired by Saurabh Kumar, Secretary (East) and Ignacio Higueras, Vice Minister of Foreign Affairs of Peru, in New Delhi.

Both sides reviewed their traditionally friendly relations and discussed ways to take forward cooperation in areas of mutual interest, including trade and investments, health and pharma, traditional medicines, mines & minerals, energy & renewables, science & technology, agriculture, defence, space, capacity building, education, culture and people to people exchanges, added the release.

They also discussed regional and multilateral issues of current relevance and took note of cooperation between the two countries in multilateral forums and international organizations.

Both sides agreed to exchange visits and organize a series of trade, cultural, educational, and other bilateral events as part of the celebrations to commemorate the 60th anniversary of diplomatic relations, read the release.

Notably, Peru has been in peril and gripped by protests and political intrigue since the ouster of its former president, Pedro Castillo on December 7.

Peru's security forces imposed a 30-day state of emergency on December 14, banning demonstrations, curtailing freedom of movement and allowing police to search homes without a warrant.

Dina Boluarte, who served as Castillo's vice-president, was sworn into office on Dec. 7, the same day Castillo was ousted.

She is the country's first female president and was not a high-profile politician before gaining power.

She's supported a plan to push up the 2024 elections for president and Congress initially scheduled for 2026. She's also supported judicial investigations into whether security forces acted with excessive force.

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US Wary of China's Expanding Footprints In Latin America

Beijing: US policymakers and military officials have raised concerns about China's growing presence in Latin America while Washington shifted its focus toward the Asia-Pacific and the Middle East, a think tank Council on Foreign Relations said.

Over the past two decades, China has developed close economic and security ties with many Latin American countries, including Brazil and Venezuela. But Beijing's growing sway in the region has raised concerns in Washington and beyond.

China is South America's top trading partner and a major source of both foreign direct investment and lending in energy and infrastructure, including through its Belt and Road Initiative. It has invested heavily in Latin America's space sector and has strengthened its military ties with several countries, particularly Venezuela.

Washington is wary of all these developments, and critics say Beijing is leveraging its economic might to further its strategic goals. "We are losing our positional advantage in this Hemisphere and immediate action is needed to reverse this trend," argued Admiral Craig S. Faller, the former head of U.S. Southern Command, in 2021.

China's role in Latin America has grown rapidly since 2000, promising economic opportunity even while raising concerns over Beijing's influence. China's state firms are major investors in the region's energy, infrastructure, and space industries, and the country has surpassed the United States as South America's largest trading partner, as per the think tank.

Beijing has also expanded its diplomatic, cultural, and military presence. Most recently, it has leveraged its support in the fight against COVID-19, supplying the region with medical equipment, loans, and hundreds of millions of vaccine doses.

But the United States and its allies fear that Beijing is using these relationships to pursue its geopolitical goals, including the further isolation of Taiwan, and to bolster authoritarian regimes. U.S. President Joe Biden, who sees China as a "strategic competitor" in the region, is seeking ways to counter its growing sway.

In 2000, the Chinese market accounted for less than 2 per cent of Latin America's exports, but China's rapid growth and resulting demand drove the region's subsequent commodities boom. Over the next eight years, trade grew at an average annual rate of 31 per cent, reaching a value of USD 180 billion in 2010.

By 2021, trade totalled USD 450 billion, and economists predict that it could exceed USD 700 billion by 2035. China is currently South America's top trading partner and the second-largest for Latin America as a whole, after the United States.

Latin American exports to China are mainly soybeans, copper, petroleum, oil, and other raw materials that the country needs to drive its industrial development. In return, the region mostly imports higher-value-added manufactured products, a trade some experts say has undercut local industries with cheaper Chinese goods. Beijing has free trade agreements in place with Chile, Costa Rica, and Peru, and 20 Latin American countries have so far signed on to China's Belt and Road Initiative (BRI). Talks on a free trade agreement with Ecuador began in February 2022.

China's focus on soft power--including strengthening cultural and educational ties--has helped Beijing build political goodwill with local governments and present itself as a viable alternative partner to the United States and European states.

Venezuela became the region's top purchaser of Chinese military hardware after the U.S. government prohibited all commercial arms sales to the country beginning in 2006. Between 2009 and 2019, Beijing reportedly sold more than USD 615 million worth of weapons to Venezuela.

Bolivia and Ecuador have also purchased millions of dollars worth of Chinese military aircraft, ground vehicles, air defence radars, and assault rifles. Cuba has sought to strengthen military ties with China, hosting the Chinese People's Liberation Army for several port visits.

Despite U.S. warnings against using Huawei equipment, which policymakers say leaves countries vulnerable to Chinese cyber threats, Argentina and Brazil, among others, depend on it for their cellular networks.

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Indian Space Agency Interested In Cooperating With Latin America

New Delhi: The Indian Space Research Organization (ISRO) reiterated the need to explore opportunities in the application of satellites and building space infrastructure in Latin America.

ISRO so far has memoranda of understanding and mutual cooperation agreements with 61 countries, the Financial Express newspaper reported.

The Indian space agency is interested in establishing ground stations in the South American region to download remote sensing data, ISRO Chairman Sreedhara Panicker Somanath was quoted as saying.

Connecting with Latin American countries is of importance to ISRO, considering the growing interest in space activities there, especially the formation of the Latin American and Caribbean Space Agency, he asserted.

“We would like to showcase ISRO’s capabilities in remote sensing, government data utilization and resource mapping, and connect with Indian industries in the space sector,” Somanath said.

According to the official, space cooperation agreements are already in place with Argentina, Bolivia, Brazil, Chile, Colombia, Mexico and Peru, and further engagements with Panama and the Dominican Republic are in the pipeline.

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Vishvas Vidu Sapkal Appointed As Next Ambassador To Peru

New Delhi: Vishvas Vidu Sapkal, an IFS officer of the 1998 batch, has been appointed as the next Ambassador of India to the Republic of Peru, the Ministry of External Affairs informed.

He is presently the Joint Secretary in the Ministry of External Affairs. "Vishvas Vidu Sapkal (IFS: 1998), presently Joint Secretary in Ministry of External Affairs, has been appointed as the next Ambassador of India to the Republic of Peru," read the MEA statement.

He is expected to take up his assignment shortly.

Earlier the position was held by Mandarapu Subbarayudu, an Indian Foreign Service (IFS) officer of the 1994 batch. Before joining the IFS, Subbarayudu worked as an engineer in the public sector and as a lecturer at a premier technical university in India.

He has served at the Ministry of External Affairs, New Delhi as Deputy Secretary in the Central Europe Division and Joint Secretary in charge of Development Partnership Administration. Serving at India's Diplomatic Missions in Jakarta, Warsaw, Rome and Dhaka, he handled political, economic and commercial and cultural and information work.

Subbarayudu had also served as the Consulate General of India at Perth in Western Australia. He holds a Bachelor of Technology degree in Civil Engineering and a Master of Technology degree in Geotechnical Engineering.

Bilateral relations between India and Peru continued to grow in sectors like trade and commerce, traditional systems of medicine, defence, renewable energy, pharmaceuticals, capacity building, culture etc.

India-Peru bilateral trade also witnessed substantial growth in the current Financial Year. A series of virtual business interactions and Buyer-Seller Meets were held to highlight trade and business opportunities for Indian companies with a focus on sectors like medical devices, pharmaceuticals, critical health technologies, automobiles, agricultural machinery, customized vehicles, leather and footwear, electronic products, technology, tourism, services, textile machinery, etc.

Under the Promotion of Cultural Ties with Diaspora (PCTD) Scheme, a Festival of India titled "Amrit Mahotsav" was held in Lima on December 8, 2021, celebrating the great diversity of Indian culture and tradition. The 6th Ayurveda Day with "Ayurveda for Poshan" as the main theme was celebrated on November 2, 2021, through a virtual event highlighting

India's wisdom in Ayurveda and its significance in daily nutrition to maintain a healthy life. Several events were held highlighting India's cultural heritage, achievements, national unity, scientific and technological advancement, development partnership and contribution of diaspora. Constitution Day, Mahaparinirvan Divas, as well as various programs highlighting India's cultural diversity, tourism, development cooperation business opportunities etc. were held from January - to March 2022.

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‘Pacific Alliance At 10’ – India Seeks More Engagement With The Member Countries

More companies are expected to enter and are from energy, mining, IT, BPOs, software, pharmaceuticals, and manufacturing

To achieve a target of USD 30 billion over the next few years, India is exploring new opportunities in the Pacific Alliance (PA) countries (Colombia, Chile, Mexico and Peru). For India, the Pacific Alliance member countries have become a regular source of crude oil, copper and gold imports.

“The Alliance reinforces our already valued partnership with the member countries. Our shared interests, complementarity of economies and expected benefits make it imperative that India and the PA continue to build partnerships,” said (Mrs) Gloria Gangte, Joint Secretary, LAC Division, Ministry of External Affairs.

She was speaking on “Pacific Alliance @10’’, jointly organised by the Embassy of Colombia which is holding the Pro Tempore Presidency of Pacific Alliance in collaboration with Ananta Aspen Centre.

Reiterating that India, as an Observer country, is committed to engage more constructively at multiple levels with the member countries, Mrs Gangte, said “India has also offered to collaborate on digital tools for publishing, scholarships for Masters Program in Cultural Management, scientific and technical cooperation on climate change and fisheries and aquaculture.”

More institutional development and clear rules in the PA will lead to an increase in investment and employment, which will ensure equal opportunities and reduce poverty.

“Even during the pandemic, the Alliance members collaborated to tackle the challenges and highlighted the importance of e-commerce and relevance of Small and Medium Enterprises,” Mrs Gangte added.

She also highlighted some steps taken by the alliance like: Eliminating tariffs among the four member states, and continuing to liberalise services and investment markets; Facilitating the flow of people and talent across borders, by removing short-term and business visa requirements; and Establishing an integrated stock exchange — Mercado Integrado Latino Americano (MILA), the largest stock exchanges in Latin America. Also, institutionalisation of cooperation through the ‘Cooperation Forum’ for engagement with Observer States, focus on 2030 Agenda and its SDGs, creation of Cooperation Fund etc.

“The Pacific Alliance is a member of the Indo-Pacific family. And, if we put in the centre of the map the Pacific Ocean, we could see Colombia, Chile, Mexico and Peru as closer relatives of India on the eastern shore of the Pacific Ocean,” reiterated the new ambassador of Colombia to India, Mrs Mariana Pacheco Montes.

According to the Colombian envoy, “India’s trade with the Pacific Alliance, which accounts for 40 per cent of its trade with Latin America, has been growing rapidly before the pandemic, and now has the potential to reach USD30 billion in the coming years.”

“In Latin America and the Caribbean the block of countries represents 38 per cent of the GDP, 50 per cent of the total trade and attracts 45 per cent of the Foreign Direct Investment (FDI). The combined population of the four member countries is 225 million persons and have an average per capita GDP of USD 18 000,” Mrs Montes said.

According to Juan Angulo, ambassador of Chile to India, “The Alliance has been a key mechanism to enhance the free movement of goods, services, capital and people between our countries. During the years the Alliance has maintained its founding vocation, which is to deepen the integration among its members. Integration not only in the transaction of goods but also facilitating the movements of capital and investments, people and culture and also services, either in financial matters, in consulting, insurances, etc. We need to continue and deepen those policies. Even if we have done a lot, one of our challenges is to increase intra Alliance commerce. Currently 92 percent of all tariff lines are duty free and the goal is to reach 100 percent of goods by 2030.”

“We have also boosted the Digital Agenda of the Alliance, with the participation of the private sector and the academy. The objective is to identify private sector needs and demands on professionals and technicians to adequate the studies and availability offered to companies,” the envoy of Chile stated.

“We have also advanced in the elimination of barriers to electronic commerce, something of special interest in the current pandemic situation,” he added.

“Environment is one area of high importance for the Pacific Alliance. And work is going on and to also bring together the efforts of the private sector and governments, prioritizes sustainability, orients its efforts towards green growth and strengthens the environmental policies of each one of the member countries,” the Chilean ambassador said.

According to him, “The Declaration on the Sustainable Management of Plastics signed in 2019 by members will implement new policies to promote the integral management of this waste and reduce its presence in ecosystems. And, also considerations for fostering the circular economy, the blue economy and the prevention of micro plastics in marine, rivers and lakes environments”.

“PA challenge is to become an effective tool for social and economic recovery after the pandemic. For such recovery, Mexico actively supports initiatives regarding women empowerment, a regional digital market, promotion of innovation and entrepreneurship, tourism revitalization, promotion of employability, education and training,” said Ambassador of Mexico to India Federico Salas Lotfe.

Adding, “Mexico has its own program to improve employability for youngsters through grants for apprentices. So far more than 260,000 young people have been enrolled, 59 per cent of them are women”.

In his address the Mexican envoy highlighted the use of e-commerce “to grow our trade will allow more MSEs to access our regional market and face the current restrictions such as lockdown and social distancing”.

India & Pacific Alliance

Pacific Alliance has marked a momentous milestone in the regional integration process that began in Lima, back in 2011 and remains a champion of free and open trade.

India joined the Pacific Alliance as an Observer member in February 2014, and since has proposed a few areas for Technical Cooperation in the field of Science & Technology, Small and Medium Enterprises sector, IT and e-Governance. Due to the ongoing global crisis because of COVID-19, the overall trade with the four member countries touched USD 12 bn in 2020-21. However it was down compared to USD 14.08 bn in 2019-20 and 17 bn in 2018-19.

Indian Companies Present In The PA Countries

There are more than 30 Indian companies who have invested in the four countries. More companies are expected to enter and are from energy, mining, IT, BPOs, software, pharmaceuticals, and manufacturing.

More About Pacific Alliance

Recent inclusion of 4 Associate Members (Australia, Canada, Singapore and New Zealand) along with a network of 59 ‘Observer States’ spanning across 5 continents consolidates the emerging international outreach of the Pacific Alliance.

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China’s Influence Is Rising In Latin America

While Latin Americans consider China as a business ally, the soft power of India is more appealing in the region

Over the years, China has made all possible efforts to become the most important ally of Latin America. China has made investments in the development of regional infrastructures such as ports, roads, dams and railways. There is no denying the fact that China seems to be receiving dividends in terms of political returns from the investment made.

Latin America and the Caribbean (LAC) and China relations have grown exponentially after China became part of WTO (2001) and is currently the region’s top trading partner. The demographic association began towards the second half of the nineteenth century when the Chinese arrived to fill in the vacuum created by declining African plantation workers in Cuba and Peru in the wake of the abolition of slavery. Thereafter, a proliferation of the Chinese community, mostly wealthy merchants with flourishing businesses or professionals, in countries with enormous potential in industrial and agricultural sectors became the trend.

The established interaction from the mid-20th century to 2000 has been a period of consolidating the development agenda. In the 1990s, taking advantage of market-driven regional groupings like Mercosur, comparable companies across countries partnered to become powerful conglomerates, the multi-latinas which have become the drivers of the LAC-China integration. This phase witnessed a state-to-state relationship where Chinese state-owned companies bought natural resources—primarily energy resources. With the turn of the millennium, the state-owned banks generously provided easy loans to LAC governments for infrastructure development, social spending or even budgetary support. Through the global financial crisis of 2008, China lifted LAC through loans and investment with the ulterior motive of ensuring affordable and steady suppliers of natural resources, simultaneously gaining access to LAC markets for Chinese goods and services. Connectivity, an offshoot of the first CELAC-China Forum meeting, has been the fulcrum of the ongoing phase of the relationship since 2015. Nineteen governments across LAC have joined the Belt and Road Initiative (BRI) of China that would create hubs of energy, production, technology and finance all across Europe and Eurasia. The Digital Silk Road (Huwaei, Alibaba and ZTE) would help LAC companies develop 5G and other artificial intelligence technologies.

The discernible modes of Chinese engagements in LAC are through direct investment and institutional lending by China Development Bank and China Exim Bank towards infrastructure funding and for meeting the developmental needs of governments. China has become a stakeholder in the hemispheric banks like the Caribbean Development Bank (1998) and Inter-American Development Bank (2009). The loans come with minimal conditionalities and ostensibly give LAC governments plenty of tractability in spending without mandating alterations in the development models.

Furthermore, the China-LAC relations have a spatial peculiarity of being bilateral, regional or multilateral. Besides bilateral ties with countries, notably Brazil, Ecuador and Venezuela, China has signed free trade agreements with Chile (2006) and Peru (2010). Regionally, there are two patterns of association of China: the Mexican and Central American Model that is based on trade associated with export assembly (maquiladora) industries and export processing; and the South American Model which is capital-intensive associated with the processing of natural resources with low levels of domestic value-addition. Multilateral engagements of China have been evident in the CELAC-China Forum, membership of APEC, observer status in ALADI, as permanent Dialogue Partner in Mercosur and CARICOM.

For LAC, partnering with China can be seen as an opportunity to diversify from the traditional trade partners-the US or European nations. Chinese entry into LAC’s manufacturing sector, which is the former’s forte, can boost productivity and enhance competitiveness. The region through gaining access to the large domestic market of China can earn sizeable export revenue. Chinese investment could become a catalyst to Latin America’s infrastructure development.

Historically, the “periphery” as a supplier of raw material to the “core”, is optimistic of a quid pro quo relationship with China. From the Chinese position, enhanced LAC cooperation could mean tackling its energy and economic security interests. The Chinese seek out hitherto unexplored destinations for migration, possible expansion of BRI into LAC and gain geopolitical mileage by partnering in the Pacific-Atlantic trans-continental rail link. Other achievements have been accessing the US market through LAC, strengthening its position within WTO and attempting to gain diplomatic recognition for Beijing within the UN.

Interestingly, China’s presence in LAC has been guided by pragmatism and not by ideological motive. The changing nature of partnership amid the Covid-19 pandemic has opened up new vistas through Chinese medical aid that could build a new world order even while no new loans were granted to the region in 2020 reflecting recovery efforts of its economy. Apprehensions about China challenging the presence of the US are allayed because both of them have competence in different fields and engage with a different focus on countries.

The relations come with a fair degree of scepticism. Alicia Barcena, Executive Secretary of ECLAC is apprehensive that greater Chinese investment in high-technology sectors would entail a structural change in the region, ultimately leading to debt-trap diplomacy. The other unease is around the emergence of another variant of Import-Substitution Industrialisation through “reindustrialisation” of LAC and perhaps another “lost decade”.

The presence of both China with India in LAC becomes uneasy due to the regional rivalry and associated strategic considerations. The Chinese engagement with LAC can motivate India that barriers of language and distance are surmountable. The stronger linkages can be bolstered through South-South trade and cooperation. India is perceived as a more responsible economic partner that has more to offer than the trade in natural resources. The countries of LAC looking towards diversifying their markets from the US and now China can seek alternative sources of investment in India. Even though China has overwhelmed the region with sizeable investments, LAC governments are apprehensive about the dumping of goods that impacts indigenous industries, and the influx of immigrants who have inundated many countries. Indian companies which are purely business-oriented and employ local staff rather than bringing in their people are more acceptable. The presence of a large Indian Diaspora in the Caribbean can become the fulcrum of cooperation and assist in redesigning its strategy towards LAC. Admittedly, while Latin Americans consider China merely as a business ally, the soft power of India is more appealing in the region. India may be more acceptable than China on many counts. India needs to attempt leveraging its soft power diplomacy and promoting its interests by establishing educational and cultural centres as well as helping Latin American nations in tackling the current pandemic.

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