As the world shifts toward sustainable technologies and resource independence, India and Peru are poised to redefine their partnership in groundbreaking ways. The recent India-Peru Joint Commission Meeting held in Lima on September 18, 2024, reflects a dynamic alliance eager to explore new horizons. Co-chaired by India’s Secretary (East), Jaideep Mazumdar, and Peru’s Vice Minister of Foreign Affairs, John Peter Camino Cannock, the meeting highlighted a broad range of collaborative efforts. Both nations are setting the stage for a transformative economic relationship, with discussions spanning vital sectors such as trade, energy, defense, and even the promising realm of lithium mining. At the heart of this collaboration lies the anticipated Free Trade Agreement (FTA), which is expected to unlock unprecedented opportunities for growth and mutual benefit.
Expanding Trade Relations and Free Trade Agreement Progress
The economic relationship between India and Peru has seen rapid growth, with bilateral trade reaching an impressive USD 3.12 billion in 2023. Peru has become India’s third-largest trading partner in the Latin American and Caribbean region, a testament to the increasing significance of this partnership. In 2023, India’s exports to Peru stood at USD 865.91 million, dominated by automobiles, motorcycles, and pharmaceuticals. Peru’s exports to India, on the other hand, were valued at USD 2.55 billion, primarily consisting of gold and copper.
The two countries are in the final stages of negotiating a Free Trade Agreement (FTA), which is expected to further enhance trade ties by removing barriers and facilitating smoother exchanges of goods and services. The discussions around the FTA have been thorough, covering critical sectors such as goods, services, and movement of natural persons, along with rules for sanitary measures, customs procedures, and trade facilitation.
NPS Vatsalya: Invest Rs 10,000 yearly and your child will receive Rs 11 crore on retirement – Check calculations
Technology-Enhanced Learning: The Role of AI in Education
NPS Calculator: Starting at 25? Here’s how much you need to invest for Rs 1.5 lakh pension post retirement?
Data deletion is costly: Privacy-related regulations underscore the need for a more nuanced approach
Peruvian Ambassador Javier Manuel Paulinich, in a recent interaction with Financial Express Online, expressed confidence that the FTA would be finalized by late 2024 or early 2025. This agreement is expected to play a pivotal role in broadening the economic framework between India and Peru. The FTA, once completed, will not only reduce tariffs and enhance market access but also create a conducive environment for businesses from both countries to collaborate more freely.
Lithium: A New Frontier in India-Peru Cooperation
One of the key areas that is set to transform the India-Peru relationship is the mining and export of lithium, a critical resource in the global shift towards clean energy. Peru is home to the Falchani mine, located on the Macusani plateau, which is the fourth-largest lithium rock mine in the world. With an estimated 9.5 million tonnes of lithium carbonate resources, Peru is positioning itself as a significant player in the global lithium market.
Peru’s potential in the lithium sector has caught India’s attention, especially as the demand for lithium is skyrocketing with the rise of electric vehicles and renewable energy storage systems. According to reports, Peru is building the largest lithium refinery in South America, set to begin operations in 2027. The refinery is projected to produce 100,000 tons of high-purity lithium carbonate annually, which could be critical in meeting India’s growing energy needs. This development places Peru in the South American lithium triangle, along with Argentina, Chile, and Bolivia, further consolidating its standing in the global supply chain.
India, eager to secure a stable supply of lithium for its electric vehicle (EV) and renewable energy industries, sees this partnership as vital for its energy security. Peru’s advancements in lithium refining will provide India with access to a crucial raw material needed for producing batteries, further strengthening the bilateral relationship in this emerging sector.
Strategic Partnerships Across Multiple Sectors
In addition to trade and lithium mining, the two countries are actively collaborating in other sectors such as defense, digital infrastructure, traditional medicine, and space. During the recent Joint Commission Meeting, Secretary (East) Jaideep Mazumdar emphasized the importance of fostering deeper ties across these sectors. For instance, collaboration in the digital public infrastructure arena could help both nations build secure and efficient platforms for governance and commerce. Similarly, scientific cooperation, especially in space technology, could lead to joint missions or research projects that benefit both nations.
Additionally, the defense relationship between India and Peru is expected to grow, with discussions about joint projects and training programs. Both sides are also keen to explore opportunities in traditional medicine, leveraging India’s expertise in Ayurveda and Peru’s rich heritage of indigenous healing practices. The cultural and educational exchanges between the two countries have also been emphasized, with plans to organize more frequent bilateral events to strengthen people-to-people connections.
Strengthening Multilateral Cooperation
Both countries acknowledged the importance of their cooperation in multilateral forums and international organizations. India and Peru are working closely on several global platforms, including the United Nations and the World Trade Organization, to address common concerns such as climate change, sustainable development, and global trade reforms. Peru’s participation in the third Voice of Global South Summit (VOGSS) earlier this year highlighted the growing alignment of their global priorities. India, in turn, congratulated Peru on its bicentenary celebrations, reflecting the deep cultural and historical ties between the two nations.
Source link : http://www.bing.com/news/apiclick.aspx?ref=FexRss&aid=&tid=66f3a9de8c404e16887b8ffac1bb20f7&url=https%3A%2F%2Fwww.financialexpress.com%2Fbusiness%2Findustry-india-and-peru-forging-new-frontiers-in-trade-and-resource-cooperation-3621250%2F&c=121853709042017596&mkt=en-us
Author :
Publish date : 2024-09-24 18:26:00
Copyright for syndicated content belongs to the linked Source.
