Building resilient supply chains through an India-Chile partnership

Chile holds a strategic position in the international market for critical minerals and rare earth elements. It possesses 22% of global production and 21% of global reserves of copper, 21% and 30% respectively of lithium, and is a significant producer of molybdenum, rhenium and iodine.

Chile's market positioning and share of these minerals opens possibility of establishing a strategic alliance with India. This is an alliance focused not merely on exploration and extraction of these minerals, but also on joint integration of value chains for products derived from them - products that will serve as essential inputs for data centres and AI factories.

A strategic partnership between the two countries - built on the foundation of comprehensive economic partnership agreement (CEPA) currently under negotiation - represents an opportunity that offers mutual benefits. Chile aims to serve as a reliable and key partner for India's energy security and help transit to a decarbonised economy.


Stable state Chile has a solid rule of law, political stability, open economy, high internet penetration, developed banking system, low country risk, world-class fibre connectivity, tax credit of 35% in R&D, well-established ecosystem for mining-related investments, and a no-hassle repatriation for capitals or dividends. The country, therefore, represents an excellent alternative for Indian investors. Also, a new bill, currently being examined by Congress in Santiago, to gradually lower corporate tax rate of 27% to 23% in 2029, represents a new incentive for investors.

New visa system for business Under the new system launched last month, businesspersons will have a multiple-entry visa, valid for up to 90 days and with a 2-yr validity. Opportunities are also present in the agri-food sector, where Chile has developed a robust and innovative ecosystem that could offer Indian consumers high-quality food products, and enable the establishment of JVs with Indian partners.

Investments and human capital Chile is a potential destination for some of India's vast pool of qualified human capital. It is developing clusters of innovation and is at the forefront in the region in implementing AI-based tools for industry and education, while keeping them human-centred and inclusive.

Chile's has a unique strategic position within the global economy, underpinned by a network of 36 trade agreements, spanning 66 economies and covering over 80% of global GDP, making the country one of the most commercially integrated in the world.

This network positions Chile as a secure and reliable gateway for Indian companies, products and services seeking to penetrate markets across the western hemisphere - where Chile shares the same time zone with all major economies - as well as other global markets.

The writer is ambassador of Chile to India