- As India looks to fulfil energy transition goals with energy exuberance, Chile’s nimbleness with green hydrogen and renewables comes as a most auspicious opportunity to partner.
- Chile is the second-largest lithium producer in the world, and with India ramping up its electric vehicle program, a consistent lithium supply is a huge task.
- Both India and Chile also have similar positions on global issues such as UNSC reforms, climate change, sustainable development, etc., along with their bilateral relations.
Gabriel Boric Font, President of the Republic of Chile, is on a state visit to India from April 1 to 5, 2025, at the invitation of Narendra Modi, Prime Minister of India. President Boric’s visit, along with a high-level delegation of ministers, lawmakers, business executives and cultural leaders, also signals the strengthening of ties between India and Chile. His first official visit to India that would take him to Agra, Mumbai and Bengaluru is likely to add an impetus to bilateral cooperation in diplomacy, business and culture.
Chile is now a prominent player in the region, whereas India had little communication with Latin America before. At a critical juncture in global geopolitics, when the cross-section of multilateralism, sustainable development, and economic partnership can set future courses for all, Boric’s visit holds the potential to reimagine ties between India and Chile.
Strengthening the Economic Pillar: Trade and Investment Prospects
India and Chile share strong economic relations, with Chile being one of India’s largest trading partners in Latin America. The India-Chile Preferential Trade Agreement (PTA) was expanded in 2017, during which more than 2,000 tariff lines were covered, leading to increased trade growth. India exports pharmaceuticals, automobiles, textiles and IT services to Chile while the latter is a key supplier of copper, lithium and a host of other minerals essential for India’s manufacturing and renewable energy industries.
As India looks to fulfil energy transition goals with energy exuberance, Chile’s nimbleness with green hydrogen and renewables comes as a most auspicious opportunity to partner. Boric’s meeting with business executives in Mumbai and Bengaluru reflects a widespread desire for enhanced trade and investment relations. The trip will probably emphasize expanding the PTA and promoting increased Indian investment in Chilean infrastructure and resource extraction.
The Lithium Factor: A Strategic Resource for India’s Green Transition
Chile is the second-largest lithium producer in the world, a mineral that is key for batteries for electric vehicles (EVs) and energy storage. With India ramping up its electric vehicle programme via the National Electric Mobility Mission, a consistent lithium supply, its key resource for battery manufacturing, is a huge task. President Boric’s visit provides India with an opportunity to talk about long-term deals on lithium imports and for both countries to work together on battery production. Given China’s dominant position in world lithium processing, extending supply chains through Chile would play into India’s strategic and economic objectives.
Technology, Innovation, and Startups: The Bengaluru Connection
Bengaluru, the tech hub of India, assumes importance during Boric’s visit, as India and Chile could potentially collaborate in the areas of IT, AI and Space technology. Programs like Digital India and Startup China are helping transform India’s digital landscape; an opportunity for Chilean startups and innovators.
India’s expertise in digital governance and fintech dovetails with Chile’s large focus on digital governance and fintech developments. Bilateral frameworks can also be established to share knowledge, co-research, and formulate digital alliances, which can drive cooperation in defining and governing emerging technologies. Chilean business executives participating in the Bengaluru meetup show keen interest in tapping into the growing tech world of India.
Geopolitical and Multilateral Dimensions: A Convergence of Interests
Both India and Chile also have similar positions on global issues such as UNSC reforms, climate change, sustainable development, etc., along with their bilateral relations. Similarly, in 1947, of all Latin American countries, only Chile had a special representative at the celebrations of India’s Independence Day, exemplifying a historical inclination to maintain strong diplomatic relations.
The two nations back a multipolar international order and a greater role for the Global South in global organizations. Boric is a top of the mind man in the Latin American political firmament and has also expressed views on reforms to world governance that are in sync with India’s call for expanding inclusiveness of global multilateral institutions. Such a visit would provide both countries with the ability to work together on global climate initiatives, renewable energy projects and South–South partnerships.
Cultural Diplomacy and People-to-People Ties
Cultural exchanges remain an important pillar of India- Chile relations. Chilean fascination with Indian philosophy, yoga and Bollywood has grown steadily, and, in turn, India has reciprocated with more academic and linguistic engagement in Latin America. Boric’s delegation included cultural envoys, underscoring the soft power of diplomatic engagement. Strengthening cultural diplomacy through greater academic collaboration, exchange programs, and media partnerships would promote greater mutual understanding and connectivity.
Challenges and the Road Ahead
The future of the India- Chile relationship seems bright, but there are challenges. Trade volumes are rising but below potential due to logistical challenges and limited direct shipping routes. Moreover, while Chile’s lithium reserves have strategic importance to India, competition from China and the United States in securing supply chains must be navigated.
Moreover, India’s engagement with Latin America has historically been overshadowed by its focus on its long-standing partners in Asia and Africa. Boric’s visit allows India to recalibrate its approach to Latin America, using Chile as a gateway to enhanced regional engagement.
Conclusion: A Defining Moment for Bilateral Relations
President Gabriel Boric’s visit to India is more than just a diplomatic function, it therefore marks a crucial milestone in India-Chile relations. Certainly, with a steer towards economic collaboration, strategic resource alliances and multilateral coordination, the visit will pave the way for a sustainable, credible and long-lasting partnership.
As India broadens its international presence and looks for new economic and strategic partners, collaborating with Latin America, beginning with a dedicated ally like Chile, could transform its position in the developing global landscape. The outcome of this visit in terms of concrete agreements and an enhanced bilateral framework will rely on the political determination and economic motivations propelling both countries ahead.
References:
- Press Information Bureau. (2025, April 1). India – Chile Joint Statement [Press release]. Press Information Bureau. https://pib.gov.in/PressReleasePage.aspx?PRID=2117396
- Ministry of Foreign Affairs, Chile. (2025, April 1). Canciller participa en visita de Estado del Presidente Gabriel Boric a la India donde se anunció inicio de negociación para un Acuerdo de Asociación Económica Integral [News article]. Ministerio de Relaciones Exteriores, Chile. https://www.minrel.gob.cl/canciller-participa-en-visita-de-estado-del-presidente-gabriel-boric-a
Shashank is a Master’s student in Diplomacy, Law, and Business at O.P. Jindal Global University. He is also a researcher and coordinator at the Center for Global South and the Center for Southeast Asian Studies. His research interests include Southeast Asia, Chinese foreign policy, India’s Act East Policy, and global security dynamics. Views expressed are the author’s own.
Balaji Subramanian 
Bishwarupa Kar 
Parag Gilada