Peru is looking to take the proposal ofFTA with the India government to increase
current bilateral trade with India from $1.5 billion to $2 billion.
The 3rd round of joint study group on FTA with Peru is
slated to meet shortly, discussing key features of the proposed FTA between the
There will be an
official delegation from the ministry of commerce that will be in Lima for the
The deal that could potentially bring trade up to $2 billion
with India, the free trade agreement (FTA) could “concretise” in the second
half of 2016 as the South American nation is heading for elections.
The commercial exchange between India and Peru has almost
doubled in the last few years, which has made the FTA possibility relevant.
Currently, Indian investments have been made in Peru in
mining, information technologies, and pharmaceuticals.
The FTA will just not be for goods and services, it will be
a comprehensive one that will have a holistic impact with even movement of
Peru got permission to sell gold to India in 2011.
India has exported in 2012 and shipped out 106 million
In 2013, we exported 270 million ounces.
The Latin American nation Peru is the sixth largest gold
producer, mining 5 million ounces every year.
Peru is also the second largest producer of silver and the
third biggest producer of copper, tin, zinc and lead.
Once the FTA is in place the gold from Peru can come in
directly in dore form.
India will save precious foreign exchange spent on refining,
while ensuring that the manufacturing facility in India can be used.
In India, the MMTC-Pamp Refinery uses these dores to refine
gold and make products such as coins and bars.
Trade with India is growing at 25% (year-on-year) without
FTA, with the expected trade agreement, we could soar to 60-70%. By the end of
2015 we expect bilateral trade to reach $2 billion.