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India-Chile FTA: A strategic push for Indian textiles in South America

India is already an observer in the Pacific Alliance, whose member countries include Chile, Colombia, Mexico, and Peru. This alignment underscores India’s broader geopolitical and trade outreach towards Latin America. While India currently lacks direct trade routes to Chile, efforts are underway to strengthen air connectivity and secure access to transshipment hubs, thereby addressing logistical barriers and enhancing trade efficiency.

Textiles and apparel remain one of India’s primary export categories to the Chilean market, despite India accounting for just * per cent of Chile’s overall imports. Indian textiles and apparel account for approximately ** per cent of India’s total exports to Chile, indicating the sector’s relative importance and potential for growth under a favourable CEPA framework.