India-Peru Trade Relations Flourish, FTA On The Horizon
Date
7/19/2024 2:18:10 PM
(MENAFN- KNN India)
New Delhi, Jul 19 (KNN) The economic partnership between India and Peru has reached new heights, with bilateral trade hitting USD 3.12 billion in 2023, signalling a robust and growing alliance between the two nations.
Ambassador Javier Manuel Paulinich of Peru to India revealed these figures in a recent statement to FinancialExpress.
India's exports to Peru amounted to USD 865.91 million, while Peru's exports to India reached USD 2.55 billion in the same year. Key exports from India include automobiles, motorcycles, and pharmaceuticals, while Peru's primary exports consist of gold and copper.
Ambassador Paulinich anticipates the finalisation of a Free Trade Agreement (FTA) between the two countries by late 2024 or early 2025.
This agreement is expected to not only boost trade volumes but also diversify economic interactions, offering new avenues for collaboration and growth.
The gold trade plays a significant role in this partnership. Between 2014 and 2023, Peru exported 357.23 tons of gold to India, with 20.6 per cent of this volume destined for the Kundan Group and its associated companies. In 2022 alone, Peru's gold exports to India were valued at USD 1.9 billion.
This trade relationship has far-reaching economic implications for both nations. Peru's mining industry benefits from the revenue generated by gold exports, contributing to its GDP and employment rates.
For India, these gold imports are crucial in meeting the country's high demand for jewellery and investment purposes.
As negotiations for the FTA progress, both countries are poised to explore new opportunities for economic cooperation.
The proposed agreement is expected to further strengthen the bilateral ties between India and Peru, potentially reshaping their economic landscapes in the coming years.
(KNN Bureau)
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