India in talks with Chile, Peru to source critical minerals, source says

India is holding talks with Chile and Peru to source critical minerals under ongoing free trade pact negotiations, a trade ministry source said on Tuesday.

Reliant on imports to meet demand, India already planned to include a chapter on copper in the trade talks with the two South American countries to secure a fixed quantity of copper concentrate, according to a government document earlier this month.

India meets more than 90 per cent of its copper concentrate needs through imports, and its dependency is expected to rise to 97 per cent by 2047, the document said.

India is also working with trading partners to reduce dependence on China for critical minerals, the trade ministry source said.

China, which produces around 90 per cent of the world’s rare earth magnets, in April put restrictions on their export as part of its response to US tariffs.

India, which has the world’s third-largest car market and the fifth-largest reserves of rare earths, is working on a new programme to incentivise local magnet production, Reuters reported last month.

Published on July 15, 2025