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Context

President Gabriel Boric state visit to India deepens economic & strategic cooperation with key agreements on trade, critical minerals, defence, space, green energy & cultural exchange reinforcing India Chile diplomatic relations.

Key Highlights

Strengthening Bilateral Trade & Economic Cooperation

Launch of Comprehensive Economic Partnership Agreement Negotiations

India & Chile agreed to begin negotiations on CEPA to enhance economic integration.

The agreement aims to expand bilateral trade, create jobs & foster economic growth.

Preferential Trade Agreement (PTA) Expansion

Acknowledging success of 2017 PTA both sides agreed to further strengthen trade mechanisms.

Indian businesspersons will now receive a Multiple Entry Permit from Chile streamlining visa process.

Focus on Critical Minerals & Supply Chain Resilience

Both nations will collaborate on exploration, mining, processing & investment in critical minerals like lithium & copper.

India seeks a long term supply of minerals from Chile to support its clean energy & advanced manufacturing industries.

Investment in Infrastructure

Chile invited Indian companies to participate in railway & infrastructure projects.

Defence & Security Partnership

Capacity Building & Military Training

Chile was placed on priority for training at Indian defence institutions like Defence Services Staff College, NDC, NDA & HDMC.

Specialised courses in mountain warfare & peacekeeping operations were offered.

Defence Industrial Collaboration

Both sides agreed to explore joint development & manufacturing of defence equipment.

Counter Terrorism & Global Security Cooperation

Strong condemnation of terrorism in all forms including cross border terrorism.

Commitment to implementing UNSC Resolution 1267 & strengthening cooperation under FATF & No Money For Terror (NMFT).

Science, Space & Digital Cooperation

Chile launched a satellite (SUCHAI-1) via India ISRO in 2017; both countries agreed to expand joint projects.

A Space Executive Committee was formed in Chile to collaborate with ISRO & IN-SPACe.

Focus on Digital Public Infrastructure (DPI), fintech, digital payments & AI development.

Chile expressed interest in adopting Indian digital transformation models.

Health, Pharmaceuticals & Traditional Medicine

Boosting Pharmaceutical Trade

Chile acknowledged India as key supplier of affordable & high quality medicines.

Both sides agreed to facilitate market access for Indian pharmaceutical products.

MoU to promote traditional medicine, homeopathy & yoga in Chile.

Multilateral Cooperation & Global Governance

Chile reiterated its support for India permanent membership in reformed & expanded UN Security Council (UNSC).

India committed to advocating for Chile inclusion as a guest country in G20 discussions.

Chile supported Indian Global South initiatives including digital transformation & green energy.

Climate Change & Renewable Energy

Both countries committed to joint investment in solar, wind & hydrogen energy.

Chile reaffirmed support for Indian leadership in International Solar Alliance (ISA) & Coalition for Disaster Resilient Infrastructure (CDRI).

Education, Research & Cultural Exchange

Chilean universities encouraged to partner with Indian institutions under National Education Policy (NEP) 2020.

Agreement to establish an ICCR Chair on Indian Studies in Chile.

Strengthening ties in music, dance, theatre, literature, museums & festivals.

Letter of Intent signed to deepen cooperation on Antarctic research.

Joint commitment to conserving marine biodiversity & sustainable use of resources.

India Chile Relations

Aspect	Details
Historical Ties	Diplomatic relations established in 1949. Chile was one of first Latin American countries to sign a trade agreement with India in 1956.
Strategic Cooperation	India & Chile share a commitment to multilateralism, South-South cooperation & global governance reforms. Both support a rules-based international order & freedom of navigation.
Political Engagements	Regular high level visits including President Pranab Mukherjee visit to Chile in 2014 & Chilean President Michelle Bachelet visit to India in 2009 & 2015.
Chile’s Role in Global Organizations	Chile is a member of APEC, OECD, Pacific Alliance & supports Indian participation in APEC.
Defence Ties	Chile has procured defence equipment from India including radars & weaponry components. Indian naval ships have visited Chilean ports as part of international cooperation.
Bilateral Trade (2024 Data)	Trade volume exceeded $3.5 billion. India mainly exports pharmaceuticals, IT services, automobiles, textiles while Chile exports copper, lithium, pulp & wine.
Investment & Economic Ties	Indian companies like Tata Consultancy Services (TCS), Mahindra & Bajaj have operations in Chile. Chilean investments in India focus on mining, agro products & wine.
Agriculture & Food Security	Chile is a major supplier of blueberries, avocados, grapes & wines to India. India has facilitated export of mangoes & spices to Chile.
Collaboration in Lithium & Battery Tech	Given Chile's large lithium reserves, India is exploring joint ventures in lithium ion battery production for electric vehicles & renewable energy storage.
Education & Research	Chilean students benefit from Indian ITEC (Indian Technical & Economic Cooperation) scholarships. Academic partnerships between Jawaharlal Nehru University (JNU) & Chilean universities are being developed.
Energy Partnership	Chile is among Indian key partners in solar energy & green hydrogen production, supporting India 2050 net-zero emission goals.
Cultural & Language Exchange	Spanish is widely taught in Indian universities, while Chile has Indian cultural centers promoting Yoga, Bollywood & Hindi learning.
Indian Diaspora in Chile	Around 3,000 Indians reside in Chile mainly engaged in IT, business & academia.
Antarctic Research & Oceanography	India & Chile have joint research projects in Antarctica. Chile provides logistical support to Indian research teams at Maitri & Bharati research stations.
Tourism & People-to-People Ties	Chilean tourists increasingly visit India for spiritual tourism, Ayurveda & Yoga retreats. India has eased visa regulations for Chilean travelers.
Cooperation in Space & Technology	ISRO launched Chile SUCHAI-1 satellite in 2017 & future space collaboration agreements are in progress.
Climate & Environment Collaboration	Both nations work under Paris Agreement, COP forums & ISA (International Solar Alliance) to combat climate change & promote sustainable practices.
Future Prospects	India & Chile are set to deepen cooperation in renewable energy, space, AI, digital economy, critical minerals & defence technology under new Comprehensive Economic Partnership Agreement (CEPA) negotiations.

Chile

Category	Details
Geographical Location	Chile is located on western edge of South America, with Pacific Ocean to west. It stretches over 4,300 km from north to south but has an average width of only 110 miles (178 km).
Bordering Countries & Territories	North Peru Northeast Bolivia East Argentina West Pacific Ocean
Territories & Islands	Easter Island (Rapa Nui) Famous for its Moai statues. Juan Fernández Archipelago Home to Robinson Crusoe Island. Desventuradas Islands & Diego Ramírez Islands Remote Pacific territories.
Topography & Physical Features	Andes Mountains dominate terrain. Atacama Desert Driest non polar desert in world. Coastal lowlands & Central Valley Most populated regions.
Highest Peak	Ojos del Salado (6,893 m) highest active stratovolcano in world located in Atacama Desert.
Major Rivers	Loa River longest river in Chile originating in Andes & flowing through Atacama Desert.
Natural Disasters	Earthquakes & tsunamis Due to location on Pacific Ring of Fire. Volcanic eruptions Several active volcanoes.
Climate Zones	North Hyper arid desert climate (Atacama Desert). Central Mediterranean climate (wine growing regions). South Rainforests & cold temperate climate. Far South Subpolar & tundra climate (Patagonia & Antarctica).
Capital & Largest City	Santiago Economic, political & cultural hub of Chile.
Official Language	Spanish (with unique Chilean dialects).
Government & Political System	Unitary Presidential Republic President is both Head of State & Government.
Economic Importance	Copper Mining World largest copper producer (key in electronics & renewable energy). Lithium Reserves Part of Lithium Triangle (Argentina Bolivia Chile) crucial for EV batteries & renewable energy storage. Wine Industry Top 10 global wine producers. Agriculture Blueberries, avocados, grapes, citrus fruits & seafood exports.
Chile-India Economic Relations	India Chile Preferential Trade Agreement (PTA) expanded in 2017. Chile exports copper, lithium, wine & salmon to India. India exports pharmaceuticals, IT services & textiles to Chile.
Scientific & Antarctic Research	Chile is Gateway to Antarctica due to its proximity to Antarctic continent. India & Chile signed a Letter of Intent for joint Antarctic exploration. Punta Arenas in Chile is a key hub for Antarctic expeditions.
Culture & Heritage	Mix of European (Spanish) & Indigenous (Mapuche, Aymara, Rapa Nui) influences. Famous poets Pablo Neruda & Gabriela Mistral (both Nobel Prize winners). Cueca National folk dance. Latin American music, literature & film industry thrive.
Space & Science Collaboration with India	Chilean SUCHAI 1 satellite launched by ISRO (2017). Collaboration on astrophysics & space technology.
Environmental Commitments	Chile joined International Solar Alliance (ISA) in 2023. Strong focus on green hydrogen & renewable energy.
Tourism & Natural Attractions	Patagonia & Torres del Paine National Park One of most scenic landscapes in world. Easter Island UNESCO heritage site with Moai statues. Atacama Desert Best place for stargazing in world. Chilean Wine Routes Famous for Carmenère & Cabernet Sauvignon.
Sports	Football (Soccer) is most popular sport. Hosted 1962 FIFA World Cup. Strong presence in rugby, tennis & motorsports.
Global Influence & Diplomacy	Member of APEC, Pacific Alliance, OECD & UN bodies. Supports India’s inclusion in APEC & UN Security Council reforms.

For more such articles, please refer to IAS GYAN

Sources:

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PRACTICE QUESTION

Q. Discuss strategic significance of Chile in Indian engagement with Latin America. How can India Chile partnership contribute to a multipolar world?