Recently, India interrupted its relationship with China and other members of the Regional Comprehensive Economic Partnership, RCEP, due to the volumized fall in the economy. Ironically, yesterday, India's import-export authorities declared that they would continue their trade agreement with Chile as it is in the final stage. Not only this, but India is also adding over 400 new goods for import and export to and from Chile respectively to strengthen the relations with the country. On the one hand, India has denied being a member of RCEP, which is a free-trade agreement. Luckily for India, its financial conditions are well-acknowledged, and at this moment, it cannot afford trade free of export duty. Yet, its enhancing relationship with Chile is one of the reasons why China is deranged.
India export data at Cybex.in disclosed that in 2006, India and Chile signed a preferential trade agreement and is continuing since 2007 till today. Until 2019, Chile and India import data reveal up to 2000 products under the mentioned agreement. In the 2018-19 period, India-Chile trade was valued at 2.22 Billion USD.
India and Chile export data show a high-end exchange of goods like pharmaceuticals, imitation jewelry, leather goods, engineering goods, transport equipment, agro and inorganic chemicals, garments, plastic products, tyres and tubes, polyester fibres, sports equipment, textiles, and handicraft. On the other hand, India import data shows that Chile brings fertilizers and machinery, copper, iron ores, lithium carbonates, metal scrap, pulp, and fruits & nuts to India.
According to the conditions of the Preferential trade agreement between India and Chile, the two countries heavily compromise on import duties. These import duties are targeted on certain goods that are exchanged at a heavy rate. In 2020, India and Chile will renew their trade agreement and have decided to add up to 400 new commodities to it.
Chile is one of the most developed nations in South America. It seems like India has widely grown its relationship with the United States. As per the past reports, India had major import pacts with China. China export data disclosed up to 14.37% of India's imports come from China. However, 2020 has come out as a different time. Many countries, including India, are taking a step back from on-growing relations with China as they believe that the widespread use of COVID-19 was intentional.
India's export-import data forecast that as 2020 ends soon, India will also end its entire foreign trade relation with China (which is currently at No. 1). Consequently, seek the largest import from the United States (which is at 7% approximately at present). How? To explain this, here's a fun fact: India's bilateral trade with China was only 81.87 Billion USD. On the other hand, its trade with the USA (2018-19) rests at 87.08 Billion USD already. Nevertheless, India has also declined its trade deficit with China by 48%.