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Peru India Relations: Trade, Agreements, Recent Developments - UPSC Notes
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Bilateral Ties
India and Peru enjoy strong bilateral relations grounded in shared values and international cooperation. Situated in the South America, Peru plays a key role in international geopolitics and security. India established diplomatic ties with Peru in 1963, setting the stage for a lasting and multifaceted partnership. India and Peru keep a Embassies in Lima and New Delhi, where each country’s embassy in the other capital ensures smooth diplomatic exchanges. Indias ties with Peru are of Gateway to LatAm, Mineral resources, APEC, Pacific Alliance member, often involving defense cooperation, economic collaboration, cultural exchanges, and shared global security objectives.
- The partnership between India and Peru covers Trade, investment, culture, education, IT, space like defense, nuclear energy, trade, space, oil and gas, cybersecurity, culture, and education.
- India and Peru have forged important partnerships through agreements in Cultural (1987), Economic Cooperation (2007), Defence (2013) to foster greater cooperation.
- India and Peru report a trade volume of USD 368 billion (2022-23), signaling further growth in their economic engagement.
- India exports Vehicles, pharmaceuticals, cotton yarn, iron, steel products to Peru as part of their growing trade partnership and long-standing economic cooperation.
- India imports Gold, copper ores, concentrates, fertilizers, fish meal from Peru, highlighting the depth of their bilateral trade partnership.
ITEC scholarships, university MoUs, IT services forms an important part of India–Peru relations, strengthening knowledge-sharing and capacity building. Covering themes such as Lines of Credit, Export to India, and Indian Companies operating in Peru India Relations, this article is a one-stop reference for GS Mains and PSIR Optional.
Peru India Relations Overview for UPSC |
|
Country Name |
Peru |
Region / Continent |
South America |
Year of Establishment of Ties |
1963 |
Level of Diplomatic Mission |
Embassies in Lima and New Delhi |
Strategic Importance |
Gateway to LatAm, Mineral resources, APEC, Pacific Alliance member |
Major Areas of Cooperation |
Trade, investment, culture, education, IT, space |
Key Bilateral Agreements |
Cultural (1987), Economic Cooperation (2007), Defence (2013) |
Bilateral Trade Volume (Latest FY) |
USD 368 billion (2022-23) |
Top Indian Exports to Partner |
Vehicles, pharmaceuticals, cotton yarn, iron, steel products |
Top Indian Imports from Partner |
Gold, copper ores, concentrates, fertilizers, fish meal |
Technology & Education |
ITEC scholarships, university MoUs, IT services |
Indian Diaspora |
Approx 500-700, professionals, business |
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Peru India Relations Establishment of Diplomatic Ties
Initial engagements, including Non-Aligned Movement, Early trade relations, have shaped the trajectory of bilateral ties. PM Indira Gandhi (1968), President Alan Garcia (1987) stand out as milestones in the evolving diplomatic relationship between India and Peru.
- India–Peru relations can be traced through key stages, including NAM ties, Post-liberalization trade, Recent diversification.
Peru India Relations - Establishment of Diplomatic Ties |
|
Initial Engagements |
Non-Aligned Movement, Early trade relations |
High-Level Visits (Historic) |
PM Indira Gandhi (1968), President Alan Garcia (1987) |
Past Conflicts or Tensions |
N/A |
Phases of Engagement |
NAM ties, Post-liberalization trade, Recent diversification |
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Strategic & Political Cooperation of Peru India Relations
The India-Peru relationship is of Gateway to LatAm, Mineral resources, APEC, Pacific Alliance member, with defense collaboration, economic partnerships, cultural interactions, and aligned global security priorities forming key components.
- MoU on Defence Cooperation (2013), training exchanges between India and Peru contributes to regional stability, border security, and peace through coordinated military activities.
- India and Peru work together through MoU on combating illicit drug trafficking (2018), maintaining cooperation by sharing information and tracking terrorist threats.
- India and Peru pursue Emerging area, IT cooperation, digital transformation initiatives that promote digital safety, secure infrastructure, and technological cooperation.
- UN, NAM, G77, WTO, Peru: APEC, Pacific Alliance facilitate engagement between India and Peru, strengthening regional and international collaboration.
- The two nations are advancing their Potential in oil, gas exploration, renewable energy by supporting joint projects in solar, wind, and energy storage sectors.
- The collaboration between India and Peru in ISRO-CONIDA MoU, Peaceful uses of space (2015) supports joint research, technology exchange, and advancements in space exploration.
- India and Peru have strengthened ties through initiatives like Air Services Agreement (2018), Tourism promotion to promote greater connectivity and travel between their citizens.
- DTAA: Under negotiation between India and Peru play a crucial role in easing tax-related barriers for businesses and investors.
Strategic & Political Cooperation of Peru India Relations |
|
Strategic Importance |
Gateway to LatAm, Mineral resources, APEC, Pacific Alliance member |
Defense Cooperation |
MoU on Defence Cooperation (2013), training exchanges |
Counter-terrorism / Intelligence |
MoU on combating illicit drug trafficking (2018) |
Cyber-security & Tech Sharing |
Emerging area, IT cooperation, digital transformation |
Multilateral Groupings |
UN, NAM, G77, WTO, Peru: APEC, Pacific Alliance |
Energy Cooperation |
Potential in oil, gas exploration, renewable energy |
Space Cooperation |
ISRO-CONIDA MoU, Peaceful uses of space (2015) |
Tourism & Air-Services Agreements |
Air Services Agreement (2018), Tourism promotion |
Taxation Agreements |
DTAA: Under negotiation |
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Trade and Economic Overview of Peru India Relations
- Several significant agreements in areas such as Cultural (1987), Economic Cooperation (2007), Defence (2013) have been signed between India and Peru to promote cooperation.
- With a trade volume of USD 368 billion (2022-23), India and Peru continue to strengthen their bilateral economic relations.
- Investment flows account for Indian: mining, IT, pharma, Peruvian: food processing, mining machinery, together with significant collaborative ventures between India and the foreign counterpart.
- Meetings like India-Peru Joint Commission Meeting (JCM), held either yearly or biennially, are essential for reviewing and advancing bilateral trade and investment ties.
- Trade between the two countries includes exports from Peru valued at Approx USD 284 billion (2022-23).
- India supplies Vehicles, pharmaceuticals, cotton yarn, iron, steel products to Peru under their strong trade relations, boosting bilateral economic growth and cooperation.
The total value of goods imported by Peru from India stood at Approx USD 084 billion (2022-23). Several Indian firms such as TCS, Tech Mahindra, pharma companies, mining firms have a business presence in Peru.
Trade and Economic Overview of Peru India Relations |
|
Bilateral Trade Volume (Latest FY) |
USD 368 billion (2022-23) |
Top Indian Exports to Partner |
Vehicles, pharmaceuticals, cotton yarn, iron, steel products |
Top Indian Imports from Partner |
Gold, copper ores, concentrates, fertilizers, fish meal |
Key Bilateral Agreements |
Cultural (1987), Economic Cooperation (2007), Defence (2013) |
Investment Flows (FDI both ways) |
Indian: mining, IT, pharma, Peruvian: food processing, mining machinery |
Joint Economic Commissions / Dialogues |
India-Peru Joint Commission Meeting (JCM) |
Lines of Credit |
N/A |
Export to India (In $) |
Approx USD 284 billion (2022-23) |
Import from India (In $) |
Approx USD 084 billion (2022-23) |
Indian Companies Operating There |
TCS, Tech Mahindra, pharma companies, mining firms |
Socio-Cultural & Diaspora Engagement
The diaspora of India and Peru is a driving force behind the improvement of Promoting cultural ties, business linkages, soft power, fostering closer relations. India promotes friendship with other countries by encouraging ICCR scholarships, yoga, Ayurveda promotion, film festivals and cultural visits. India and its partner country support each other in education through programs like ITEC programme, university MoUs, student exchange.
- Peru, primarily consisting of students and professionals, enhances cultural, educational, and economic connections, with numbers around Approx 500-700, professionals, business.
- Leveraging Defence MoU (Hard), Culture, Yoga, ITEC (Soft), India and Peru work to enhance their strategic importance and increase their global reach.
Socio-Cultural & Diaspora Engagement |
|
Indian Diaspora |
Approx 500-700, professionals, business |
Diaspora Remittances |
N/A |
Role of Diaspora |
Promoting cultural ties, business linkages, soft power |
Cultural Exchanges |
ICCR scholarships, yoga, Ayurveda promotion, film festivals |
Education Cooperation |
ITEC programme, university MoUs, student exchange |
Hard Power & Soft Power Instruments |
Defence MoU (Hard), Culture, Yoga, ITEC (Soft) |
Peru India Relations Recent Developments
The diplomatic relationship between India and Peru is reinforced by EAM Jaishankar (2023), MoS Meenakashi Lekhi (2024) aimed at expanding mutual cooperation. The current diplomatic landscape is shaped by Air Services (2018), Drug Trafficking MoU (2018), whether through renewed dialogue or active MoUs in key domains.
- Trade Agreement negotiations, capacity building underline key areas of engagement between India and Peru.
- India and Peru have acknowledged Distance, language barrier, limited awareness, pending Trade Agreement as areas needing constructive resolution.
- Long-term engagement strategies reflect positive Trade Agreement finalization, increased trade, diversification, tech collaboration between the two partners.
Peru India Relations Recent Developments & Future Outlook |
|
Recent High-Level Visits |
EAM Jaishankar (2023), MoS Meenakashi Lekhi (2024) |
Recent Agreements Signed |
Air Services (2018), Drug Trafficking MoU (2018) |
Ongoing Projects |
Trade Agreement negotiations, capacity building |
Challenges / Issues |
Distance, language barrier, limited awareness, pending Trade Agreement |
Future Prospects |
Trade Agreement finalization, increased trade, diversification, tech collaboration |
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UPSC Relevance of Peru India Relations
- Key agreements, high-level visits, and organizations like SCO, BRICS, or UN involving Peru are often tested in the prelims.
- A strong grasp of challenges and future prospects enhances answer quality in international relations essays.
- The bilateral framework showcases how India’s foreign policy aligns with constitutional and ethical principles.
- International relations within Public Administration or Law optional papers can cite treaties, agreements, or global governance themes from this relationship.
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