Mincetur: Peruvian exports to India would rise up to 8% with FTA

Peruvian exports to India would rise up to 8%, if the Free Trade Agreement (FTA) between the two countries is finalized, as confirmed to this medium by the Ministry of Foreign Trade and Tourism (Mincetur). The holder of this portfolio, Juan Carlos Mathews, specified that it is still too soon to have an official estimate because the trade agreement process that has been resumed will cover the analysis of each product and service that will be part of the negotiation; Likewise, some sensitive sectors, such as textiles and pharmaceuticals, could be excluded.

“Taking into account that it is the second largest economy in the world in terms of population and that it will soon become number one (…), that it has significant consumption capacity and an opportunity to capture investment here, there are quite interesting expectations. I would say that trade could grow 7% or 8%”, explained the minister.

Potential

For his part, the director of the HUNDRED-ADEXEdgar Vásquez Vela, points out that the elimination or reduction of entry barriers to this market will facilitate “greater diversification of our exports, especially those with added value”.
Today, more than 80% of what we export to this country is gold (US$2.3 billion), therefore, a niche that could be exploited is in the food sector. “It is still a destination that has not been explored, far away, logistically somewhat complex due to the distances, but that does not indicate that, therefore, there are not great opportunities for all kinds of industries, mainly food,” Vásquez points out.

MSMEs with the greatest opportunities

Trade between Peru and India has had a vigorous evolution, going from US$73 million (2003) to more than US$3.3 billion in 2022. Last year, 597 Peruvian companies made shipments to this country: 64% are micro, small and medium enterprises.

“(He FTA) will contribute to continuing on the path of economic recovery in the country, especially for our MSMEs, by opening up new opportunities in this market,” said Teresa Mera, Vice Minister of Foreign Trade.