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Home > India Chile Bilateral Relations

India Chile Bilateral Relations

 

I - Political Relations:

India-Chile relations are characterized by warmth, friendship and a commonality of views on a wide range of issues. Chile shares India’s concerns over the threat of international terrorism and has regularly condemned the acts of cross-border terrorism that India has suffered. Both countries cooperate extensively in multilateral fora and share similar views on climate change/renewable energy issues and on expansion and reforms of the UNSC. Chile articulated its support for India’s claim to a permanent seat in the UNSC in a Joint Statement issued at the conclusion of the official visit of Chile’s Foreign Minister to India in April 2003, and has consistently reiterated this support since. It also signed the International Solar Alliance Framework Agreement in November 2017.

 

The Defence Wing in the Embassy of India, Santiago, was established in July 2006. In 2009, India and Chile celebrated 60 years of the establishment of diplomatic relations which coincided with the visit to India by the President of Chile, H.E. Dr. Michelle Bachelet Jeria. This was in reciprocation of then Hon’ble President of India, Smt. Pratibha Devisingh Patil´s visit to Chile in 2008. The Sixth Round of India-Chile Foreign Office Consultations was held in New Delhi on 31 October, 2014. Hon’ble President Ram Nath Kovind visited Chile (30 March to 1 April 2019) which also marked the 70th Anniversary of establishment of India-Chile diplomatic relations. President Pinera has expressed a keen desire to visit India in 2019-2020.

 

India and Chile have signed Agreements/MoUs covering various fields of cooperation such as Sports, S&T, Antarctica, Defence, Air Services, Agriculture, New and Renewable Energy, Education, Outer Space, Geology and Mineral Resources, and Gainful employment of spouses and eligible dependents of diplomatic personnel. On 6 September 2016, an Agreement on the expansion of the India-Chile Preferential Trade Agreement (PTA) was signed in New Delhi which increased the scope of the agreement from about 474 tariff lines to 2829 tariff lines. A meeting of the Joint Administrative Committee under the PTA was held in Delhi on April 30, 2019. During MoS (VK)’s visit to Chile in May 2018, an MoU was also signed on establishment of a high-level Joint Commission between India and Chile. During visit of Hon’ble President on 1 April 2019, agreements for cultural exchange and cooperation in mining sectors were renewed and agreement was signed on cooperation in disability sector.

  

 

II - Trade and Economic Relations:

India’s exports to Chile have been growing steadily since 2009, with the exception of a slight decrease in 2014, when a new carbon tax on diesel vehicles in Chile adversely affected motor vehicle exports from India, but this sector has seen a big recovery. Chilean exports to India have also increased, though there was a slump in 2015 and 2016 due to the impact of low copper prices, the major export item in Chile’s basket. The bilateral trade increased in 2017 over 2016. In 2018, overall bilateral trade decreased but this was due to a decrease in India’s imports from Chile; India’s exports to Chile showed a significant increase.

 

 

Year

Exports from India to Chile (CIF)

Imports from Chile by India (FOB)

Total Indo-Chilean bilateral trade

2009

278.07

908.35

1186.42

2010

380.91

1581.95

1962.86

2011

467.03

1964.99

2432.02

2012

658.45

2636.82

3295.27

2013

693.90

2182.70

2876.60

2014

619.85

2571.75

3191.60

2015

685.76

2026.98

2712.74

2016

701.05

1398.53

2099.58

2017

776.99

1742.33

2519.32

2018

957.11

1480.62

2437.73

Jan-Sep 2019

689.66

919.91

1609.57

 Source:  Santiago Chamber of Commerce (In Million US Dollars)

 

High value-added items such as commercial vehicles (Telco, Mahindra), motor cars (Tata Motors, Maruti Suzuki, Hyundai), two-wheelers, and bulk pharmaceuticals have entered the Chilean market, and are among the top 10 Indian exports to Chile. Other traditional items being imported by Chile are home furnishings, garments, handicrafts, textiles, carpets and hand-tools. India’s imports from Chile are predominantly copper, iodine, chemical wood pulp, molybdenum concentrates, walnuts and apples. Discussions are underway to finalize phyto-sanitary requirements for the export of avacados and blue berries from Chile, and the import of mango, coco peat, pomegranate and pomegranate arils from India.

 

Visits of business delegations: Former President of Chile and President Bachelet´s Special Envoy to the Asia Pacific, Mr. Eduardo Frei, led business delegations to India in November 2015, October 2017 and August 2019. There have been many visits by various organisations (such as CII, FICCI, PHDCCI, ITPO, CLE, PHARMEXCIL, AMA, EPCH etc) from India to Chile to hold BSMs/B2B meetings, participate in Trade Fairs, and to organize road shows in the areas of pharma, apparel, handicrafts, leather, chemicals and allied products, sports goods, information technology, tourism, etc. The 8th India CII India-LAC Business Conclave was held in Santiago on 1-2 October 2018.

 

Investments: As far as Indian investment in Chile is concerned, based on the information given by various companies, it amounts to about US$220 million. Indian companies have entered the Chilean market by acquiring Chilean companies or setting up joint ventures. Chilean investment in India amounts to US$ 150.54 million (source: DIPP). However, independent information is that Chilean Financial Institutions have invested upto US$ 3244 million in the Indian Financial sector.

  

III – ITEC:

25 slots are offered to civilians every year and we have seen a good response, especially in courses for English language, IT skills, Legislative drafting, Audit, E-Governance, Renewable energy and Environmental technologies. On the defence side, slots are offered regularly for Staff College, NDC, NDA, and HDMC. In addition, slots have been offered in the past for specialized courses in peacekeeping operations and mountain warfare. However, uptake of these offers is not satisfactory, primarily because defence ITEC slots are only partially funded, and no airfares are provided unlike the civilian slots which are fully funded.

 

IV – Cultural Relations:

Indian culture is very popular here in Chile. There are a large number of local Yoga schools (Kundalini Yoga, Iyengar Yoga, Bikram Yoga etc.) and practitioners. There are also quite a few Chileans who have learned Indian classical dance and music, some of whom run their own schools. Bollywood music and dance is also popular. Indian cuisine is appreciated and there are many Indian restaurants in Santiago. Organisations such as ISKCON, Brahmakumari Samaj, and Art of Living are also flourishing. There are Hindu Temples in Santiago, Iquique and Punta Arenas. There is also a small but thriving community of Buddhists.

 

Cultural events are organised regularly by the Embassy, including groups from India such as Guru Shovana Narayan´s Kathak Group (April 2017). The International Day of Yoga is also celebrated annually and in 2017, was celebrated in the Chilean Parliament for the first time, and again in 2018. India@70 celebrations started off with the visit of the Mayadhar Raut group (Odissi) to Santiago in August 2017, followed by the visit of “Natya Vriksha” group led by Ms.Geeta Chandran (Bharatnatyam) in October 2017. For the first time, India officially participated in the “Santiago a Mil” International Theater Festival held in January 2018 in Santiago with performances/workshops by Mr. Astad Deboo and his group. The year long celebrations for the 150th Birth Anniversary of Mahatma Gandhi was launched by MOS (VK), Gen. (Dr.) V. K. Singh (Retd.), who was in Chile for the 8th CII India-LAC Conclave. India was the guest country at the the Expo Arte event in Santo Domingo in January 2019. A six member Manganiar group led by Shri Ghazi Khan, participated in Chile’s WOMAD festival in February, 2019.

 

V - Indian Community:

The origins of the Indian community in Chile can be traced back to 1905. Currently, it is estimated that there are around 3000 Indians living in Chile of which approx. 50% have obtained Chilean nationality. One third of them live in Iquique and the rest are in Santiago, Valparaiso, Vina del Mar and Punta Arenas. The majority are from the Sindhi community who are mainly engaged in business, and have integrated well with Chilean society. In addition, there is a constant flow of professionals and businessmen from India, working mainly in the ICT and financial services sectors and also in Indian companies represented in Chile. Some Indian labour is also present in Chile, working mainly in Indian restaurants and as agricultural workers.

 

 

Useful Resources:

Website          :          http://www.indianembassysantiago.gov.in/

Facebook        :           IndiaInChile/

Facebook        :           ItecinChile

Twitter           :           @Indiainchile

 

 

15 November, 2019.

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