India speeds up FTAs with Peru, Chile, Mexico to offset US tariffs: Report

The move is anticipated to particularly benefit engineering goods, textiles, and gems and jewellery, which collectively make up about $40 billion of shipments to America.

India is reportedly ramping up efforts to finalise free-trade agreements (FTAs) with Peru, Chile, and Mexico as part of its strategy to reduce dependence on the U.S. after steep tariff hikes by the Trump administration.

According to a report by The Mint, the three Latin American markets together could absorb around 20 percent of India’s exports currently shipped to the US, worth nearly $17 billion, without requiring major supply-chain changes.

The move is anticipated to particularly benefit engineering goods, textiles, and gems and jewellery, which collectively make up about $40 billion of shipments to America, states the report.

India exported goods worth $86.5 billion to the US in FY25, accounting for one-fifth of its total merchandise exports. However, the latest 50 percent duties imposed in August risk cutting these flows by up to 40 percent, a Global Trade Research Initiative (GTRI) report has warned.

Talks with Peru are already advanced, it has been learnt from the report, with the eighth round of negotiations held in August 2025, focusing on lithium and copper access. Peru’s envoy has indicated a deal could be sealed by late 2025 or early 2026.

With Chile, India launched Comprehensive Economic Partnership Agreement (CEPA) negotiations earlier this year, covering 17 thematic tracks, including technology and critical minerals.

Meanwhile, Mexico, India’s largest trading partner in the region, remains without a formal trade pact despite strong bilateral ties, though discussions are gaining momentum.

According to trade experts cited in the report, diversifying into Latin America would help cushion Indian exporters against tariff shocks while opening new opportunities in technology, clean energy, and pharmaceuticals.