"From Walnuts to Wine: The 2024 Transformation of Agricultural Trade Between Chile and India"

Chile and India are strengthening their strategic partnership, particularly in the area of agricultural trade. In 2023, the bilateral trade between the two nations reached an impressive $2.847 billion, with Chile exporting $560 million worth of goods and services to India. Traditionally, this trade has focused on non-copper and non-lithium products, but agriculture is becoming an increasingly important sector for growth and collaboration. Chile is now exporting a variety of agricultural products to India, such as fruits, nuts, and wines. Both countries are working on initiatives to further enhance their trade potential.

Chile was the first nation to establish a Partial Scope Agreement (PSA) with India, a partnership that began in 2007 and was expanded in 2017. This agreement currently provides tariff preferences for 1,110 Chilean products entering the Indian market, paving the way for increased agricultural exports.

The agricultural trade between Chile and India presents significant opportunities, especially in areas like walnuts, cherries, and kiwis. A senior official from India’s Agriculture Ministry noted that Chile has great potential to increase walnut exports to India. He emphasized the mutual benefits that could arise from both countries complementing each other’s agricultural needs, such as by exchanging seasonal produce and leveraging their respective expertise.

This collaboration goes beyond just trading commodities. The official also highlighted the potential for India to adopt Chile's advanced agricultural technologies, including blockchain and processing methods, which could significantly enhance India's horticultural sector. He pointed out that by implementing these technologies, both nations could benefit from their complementarities.

With a rising trend of Chileans adopting vegetarian and vegan diets, there is increasing demand for organic and plant-based foods. Given India's strong tradition of vegetarian cuisine and focus on organic farming, it is well-positioned to meet this demand. The official noted that India has a significant advantage in vegetarian foods and can export high-quality products to Chile, highlighting the natural alignment between the two countries in this area.