A proposed free trade agreement (FTA) between India and Peru is still a long way from being sealed. Commerce and Industry Minister Piyush Goyal made it clear that the deal is nowhere near completion, because several issues around opening the market for certain goods remain unresolved. Goyal spoke to reporters on the sidelines of the 17th Toy Biz International B2B Exhibition.
Goyal acknowledged that New Delhi still has firm limits on what it can offer Peru. "There are certain concerns. There are many products where we cannot offer them market access. I do not see Peru FTA happening very soon," he said.
Talks Running Since 2017
Negotiations for the India-Peru FTA began back in 2017. Bilateral trade between the two countries climbed 67.5 per cent to USD 10 billion in 2025-26. During this period India exported goods worth USD 1.4 billion, while imports stood at USD 8.87 billion. That left India with a trade deficit of USD 7.47 billion in the same fiscal year.
India's exports to Peru include motor vehicles or cars, cotton yarn and pharmaceuticals. Imports from Peru, on the other hand, are made up of gold, copper ores and concentrates. Experts believe that granting duty concessions on gold could be the single toughest point in this deal. The reason is simple: gold alone makes up about 90 per cent of India's total imports from Peru.
Why Gold Imports Turned Sensitive
In 2025-26, India's gold imports from Peru jumped 78.45 per cent. Their value rose to USD 7.9 billion from USD 4.43 billion in 2024-25. These very numbers explain why gold duties remain so delicate in the proposed trade pact. India's import basket from Peru is far larger than what it currently exports.
Faster Track Planned With Canada
Goyal said India intends to move quickly on a trade agreement with Canada. "The Canada FTA is progressing well... our team is going on Monday for the next round of negotiations. We are trying that we should conclude it in the next six months or so," he said.
The two sides wrapped up the second round of talks for the Comprehensive Economic Partnership Agreement (CEPA) on May 8. India and Canada have set a target of reaching USD 50 billion in trade by 2030. However, bilateral trade in 2025-26 stood at USD 7.95 billion, down 8.22 per cent from USD 8.7 billion in 2024-25.
In 2025-26, India's exports to Canada were USD 4.67 billion, while imports came to USD 3.28 billion. Canada's market was estimated at 41.65 million people in 2025. At purchasing power parity, its economy was valued at USD 2.34 trillion. These figures are being cited as the scale of the opportunity on offer.
India sells pharmaceuticals, iron and steel, seafood, cotton garments, electronic goods and chemicals to Canada. Imports include pulses, pearls and semi-precious stones, coal, fertiliser, paper and crude petroleum. India also exports services such as telecommunications, along with computer and information services and other business services.
Canada is currently home to more than 4,25,000 Indian students and a large Indian community. India's chief negotiator in these talks is Brij Mohan Mishra, Joint Secretary in the Department of Commerce, while Bruce Christie is Canada's chief negotiator. Officials view the talks as part of a wider push to strengthen commerce and investment ties.
Israel Talks Slowed by Regional Crisis
Goyal said the India-Israel FTA talks have slowed because of the ongoing conflict in West Asia. "Israel, as you are aware, is currently having the West Asia crisis. Even then, our negotiations, our discussions are going on, albeit a little slow. Let us hope that we can fast-track it after the peace process is over," he said.
According to an official, India and Israel opened the first round of FTA negotiations on February 24. The stated goal was to boost commercial ties and support investment flows. Goyal's remarks suggest that despite the delays this track remains open, though its pace will depend on the regional situation stabilising.
Next India-EU Meeting on July 13
Goyal said the next India-EU Trade and Technology Council (TTC) meeting is scheduled for July 13 in Brussels. External Affairs Minister S Jaishankar and Ashwini Vaishnaw will travel with Goyal for the meeting. Vaishnaw holds the Railways, Information and Broadcasting, and Electronics and IT portfolios. These ministers co-chair the TTC on India's side.
Goyal said the TTC is meant to support the India-EU trade pact. "Our effort is that it becomes a supplement to the FTA which we have finalised and will help us to smoothen the edges and make it easier to implement the FTA going forward," he said. India and the 27-nation EU have already announced the conclusion of negotiations.
Both sides are now completing the legal scrubbing of the agreement text. The pact may be signed by the end of this year, while its implementation could begin in 2027. The second TTC meeting was held on February 28, 2025, while the first took place in Brussels on May 16, 2023.
Three Working Groups Reviewed
A stock-taking session was held online on November 24, 2023, reviewing the progress of three working groups. These covered Strategic Technologies, Digital Governance and Digital Connectivity. The other two groups focused on Clean and Green Technologies, and Trade, Investment and Resilient Value Chains. The exercise was aimed at tracking deliverables across all the pillars.
The TTC was set up in April 2022 by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen. It was designed as a platform linking trade and trusted technology with security concerns. Officials say it reflects the growing links between trade and technology, while underlining the need to cooperate on the security challenges tied to these areas.
