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India is actively negotiating with Chile and Peru to secure long-term access to critical minerals, especially copper concentrate, as part of ongoing free trade agreement (FTA) talks, according to a Reuters report. The move comes as the country seeks to reduce its reliance on China and strengthen its domestic supply chain for key industrial inputs.
As part of the FTA discussions, India aims to include a dedicated chapter on copper to ensure a fixed supply of copper concentrate from the South American nations. Currently, India imports over 90% of its copper concentrate requirements, a figure projected to rise to 97% by 2047 if domestic production does not increase.
The talks align with India’s broader strategy to diversify its sources of critical minerals amid rising global competition and geopolitical tensions. This includes an effort to lessen dependency on China, which remains a dominant player in the rare earth and magnet industries. China produces roughly 90% of the world’s rare earth magnets and recently imposed export restrictions on them in response to U.S. tariffs.
India’s push to secure alternative supply chains for critical minerals is seen as essential for its growing electronics, renewable energy, and electric vehicle sectors, all of which require copper and rare earth elements for production.
These FTA negotiations with resource-rich countries like Chile and Peru reflect a global shift toward resource security and supply chain resilience in strategic industries. Strengthening bilateral trade relationships and securing key raw materials are expected to support India’s long-term economic and technological ambitions.
