India-Peru Free Trade Agreement to focus on investments

India-Peru Free Trade Agreement to focus on investments

A feasibility study team from Peru is to visit India this month, to pave way for the negotiation on the Free Trade Agreement

The Dollar Business Bureau

The negotiation on Free Trade Agreement (FTA) between India and Peru will focus on investment in both countries and boosting economic relations, Indian Ambassador to Peru, Sandeep Chakravorty said. Both the countries have decided to fast-track the FTA talks. A feasibility study team from Peru is expected to visit India this month to meet Indian officials. “The FTA will keep in mind investment on both sides, because I believe it is impossible to have a positive balance trade without investment; we think investment is an important part of the agreement,” Chakravorty was quoted as having said by Peru’s Andina news agency. The statement came ahead of an international convention to be held in Peru’s capital Lima from August 5-7. More than 80 Indian and hundreds of global exhibitors will showcase their hi-tech products at the INDEE-Peru convention, being organised by India’s Engineering Export Promotion Council (EEPC). According to experts, while the FTA will give Peruvian companies access to the Indian market of 1.2 billion, India’s exports of IT services and engineering goods will get a major push in the low-import duty zone of the Latin American country. According to EEPC, India's engineering exports to Latin American countries during April-May this year was worth $550 million, up by more than 10% from $459 million recorded during the same period last year. Peru is the world's sixth largest gold producer with an average annual production of 5 million ounces. The country also trades in other metals like silver, copper, tin and zinc. India imports raw gold (dore) from Peru and other Latin American countries. Once the FTA is implemented, supply of dore from Peru will benefit Indian gold refiners in saving import duty and earning more foreign exchange on jewellery exports. At present, the bilateral trade covering sectors like mining, agricultural, fisheries, textiles, and pharmaceuticals is estimated at $1.15 billion. India’s export to Peru accounts for more than $875 million, while shipment from the Latin American country to India is valued at around $320 million.      

August 01, 2015 | 5:07 pm IST.

The Dollar Business Bureau - Aug 01, 2015 12:00 IST