Bilateral trade between India and Peru reached USD 3.12 billion in 2023, indicating a robust and expanding economic partnership, according to Javier Manuel Paulinich, Peru's Ambassador to India.
India's exports to Peru totalled USD 865.91 million, while Peru's exports to India amounted to USD 2.55 billion. India's key exports included automobiles, motorcycles, and pharmaceuticals, whereas Peru primarily exported gold and copper.
Ambassador Paulinich expects a Free Trade Agreement (FTA) between the two nations to be finalised by late 2024 or early 2025. This agreement is anticipated to boost trade volumes and diversify economic interactions, providing new opportunities for collaboration and growth.
The gold trade significantly influences this partnership. Between 2014 and 2023, Peru exported 357.23 tons of gold to India. Out of this, 73.65 tons were destined for Kundan Care Products, Kundan Refinery, and other companies associated with the Kundan Group, one of India’s leading gold importers.
This amount represents 20.6 per cent of all the gold sold to India during this period. Notably, in 2022 alone, Peru exported gold worth USD 1.9 billion to India.
This trade relationship has substantial economic implications for both countries. 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 vital in meeting the country's high demand for jewellery and investment.
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