Peru Seeks Indian Investments In Rare Earth Collection & Logistics As FTA Nears

Peru has invited Indian companies to invest, start joint venture exploration, and technological tie-ups in the sector to source critical minerals from Peru. China's ban on the export of rare earths has raised concerns; Peru has resorted to inviting India to invest.

Diplomat From Peru's Statement

According to Business Standard, "A top diplomat from the Latin American country said on Monday in Chennai that both India and Peru are expected to finalise a comprehensive Free Trade Agreement (FTA) by the end of this year or early 2026."

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India-Peru Bilateral Trade

The India–Peru economic partnership has seen significant momentum in recent years, with bilateral trade growing from $2.34 billion in 2019–20 to $4.03 billion in 2023–24. India is now Peru’s third-largest trading partner in the Latin American and Caribbean region.

Peru's Rare Earth Minerals

Ambassador of Peru to India, Javier Manuel Paulinich Velarde, said that Peru's deposits of rare earth minerals are relevant to the world and India's strategic ambitions in clean energy and advanced technologies. Rare earth minerals like neodymium, praseodymium, dysprosium, and terbium. He explained that Peru welcomes Indian investment, joint exploration initiatives, and technological collaboration in the vital sector.

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Minerals Essential For Defense Systems

Addressing the first official Peruvian National Day celebration in Chennai, he added that these critical minerals are essential for the production of electric vehicles, wind turbines, electronics, and next-generation defence systems. “By the end of this year or early 2026, we expect to conclude the Free Trade Agreement negotiations, unlocking mutual opportunities in trade, investment, agribusiness, pharmaceuticals, and technology,” Velarde said.

India-Peru Collaborations

“As Peru emerges as a key source of critical minerals including rare-earth magnets, copper, and lithium, we see great potential for Tamil Nadu-based manufacturing industries to forge mutually beneficial partnerships,” said R. Dinesh, Honorary Consul of Peru in Chennai and Chairman of TVS Supply Chain Solutions. “I strongly believe that the deep, shared interests between India and Peru can foster meaningful collaborations among entrepreneurs, investors, and institutions—driving outcomes that are both commercially rewarding and culturally enriching,” Dinesh said.