Chile–India relations

Chile–India relations
Chile–India relations
Map indicating locations of Chile and India

Chile

India

Chile was the first country in South America to sign a trade agreement with India, in 1956. An ongoing dialogue has nurtured bilateral political understanding. The mechanism of Foreign Office level consultations was initiated in Santiago in August, 2000, and was followed up with a second meeting in New Delhi in April, 2003. However, high level political exchanges have been few and far between. Prime Minister Indira Gandhi visited Chile in 1968, Transport and Communications Minister K.P. Unnikrishnan in 1990, and President Shankar Dayal Sharma in 1995. From the Chilean side, there has not been any HOS/HOG visit to India. As an indication of Chile’s interest in an enhanced relationship, the Chilean Minister of Agriculture visited India in December, 2001.

The Chilean Vice Minister of Economy Mr. Alvaro Diaz visited India on 10–12 November 2002, and the Minister for Mines, Mr. Alfonso Dulanto, visited India on 13–15 November 2002. Foreign Minister Maria Soledad Alvear’s visit from 24–25 April was the first bilateral official visit to India by a Chilean Foreign Minister after a gap of 46 years.

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Trade Relations

As part of its foreign trade policy, oriented to strengthening the liberalization of trade through the signature of Free Trade Agreements (FTA) and similar instruments, Chile evaluated the convenience of accepting a proposal made by India in the year 2003, to negotiate a Partial Scope Agreement (PSA) that would include tariff reductions, rules of origin, customs procedures, and safeguards.

The fact that Indian exports grew over 11-fold in the last 11 years from US$7 million to US$82 million in 2002 is a clear indication of the trend. Chile's exports also grew from US$30 million to US$180 million during the same period.

Indian exports destined for South American countries are trans-shipped via Singapore/Hong Kong or Europe due to the absence of direct shipping links, resulting in high freight costs and longer duration of voyages. A study by Exim-Bank of India has concluded that establishment of direct shipping links between India and South America via South Africa would reduce voyage time by nearly 50% and freight costs by 25%. Other barriers to trade are the inability of Indian exporters to provide long and short term credits required by Chilean importers, and lack of mutual awareness of market possibilities, compounded by problems of language. However, with the introduction of high value items such as motor vehicles and pharmaceuticals, India's exports can be expected to rise significantly in coming years.

Indians in Chile

The Indian community in Chile numbers around 1100, mostly residing in Santiago, Iquique, and Punta Arenas. Largely engaged in small business and trade, the community is gradually being assimilated into the mainstream through naturalisation. An average of 1000 Chileans visit India annually, mainly for tourism.

Cultural ties

Indian culture is highly regarded and appreciated in Chile. Chile’s cultural openness and receptivity is also remarkable. Yoga is widely practised there. Santiago hosts 16 yoga training centres. Four monuments have been raised to honour Mahatma Gandhi: one in Santiago, erected in 1968, one in Curico, erected in 1999, one in Sagrada Familia in May, 2002, and one in Rancagua in April, 2003. A fifth monument of Mahatma Gandhi is expected to be erected shortly in Valparaiso, a port city recently declared by UNESCO as a World Heritage Property. To give effect to a Bilateral Cultural Agreement signed in 1993, a Cultural Exchange Programme for the years 2003-2005 was signed in New Delhi in April, 2003. The CEP is now under implementation.

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