By Vishu Adhana
New Delhi [India] November 19 : India wants a separate chapter on critical minerals in the under negotiation Free Trade Agreement (FTA) with Peru, Peruvian Ambassador Javier Manuel Paulinich Velarde toldon Wednesday, adding that Lima is studying the proposal.
"For India, these critical minerals are very important. They need it. They would like to have a separate chapter in our free trade agreement. We are studying this issue. But the most important thing is that we are willing to cooperate with India in this such an important good, critical minerals, because we have plenty of them to sell," Ambassador Velarde said.
He said that New Delhi has a "big opportunity" to acquire mining assets or secure access to key minerals in Peru, as the country tries to "balance" the participation in the mining sector, which is dominated by China.
He said Peru is open to cooperation with India on critical minerals, noting that "India needs this," but that the level of tariff cuts remains a technical matter still under negotiation.
India and Peru launched FTA negotiations in 2017, but the talks were stalled during the COVID-19 years. The 9th round wrapped up in November 2025 as both sides pushed to settle pending issues before the next round in January 2026 in New Delhi.
The ambassador noted that the pact will be finalised by July next year. "We are now moving on a fast track. The idea is to finalise the negotiations by June-July next year," Velarde said.
The ninth round of talks was recently held in Lima, and the tenth round is scheduled for January in New Delhi, with intersessional virtual discussions taking place in the meantime.
When asked whether Peru would welcome Indian companies investing in mining critical and rare earth minerals, the Ambassador said Peru has a "very liberal system" in which foreign companies enjoy the same rights and obligations as national companies.
He highlighted Peru's vast mineral potential, noting that the country is the world's largest holder of silver reserves, second in copper, third in zinc, fourth in molybdenum, fifth in lead and sixth in gold.
Currently, trade between the two nations stands at USD 6 billion as of 2024, for 2025, the target is set at USD 7 billion. The trade imbalance is in favour of Peru. Peru exports gold, copper, zinc, and iron ore to India, and India exports medicines, cars, and manufactured goods. Peru wants to import more from India, especially IT services and digital expertise.
Velarde stressed that Peru is looking to diversify its investor base and would like to see India scale up its presence in exploration and mining to a level that "benefits both countries."
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