Under this expanded preferential trade agreement (PTA), both the countries have offered to lower or eliminate duties on a number of items traded with each other.
Chile has offered duty concessions on as many as 1,798 goods such as agri items, chemicals, pharmaceuticals, plastics, textiles, apparel, iron and steel items, copper machinery, to Indian exporters as compared to 178 items earlier.
On the other hand, India has offered concessions to Chile on 1,031 products including meat items, fish, vegetable oil, processed food, pharma, plastic and pearls as against 296 earlier.
Over 96 per cent of the total trade is now covered by this agreement.
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Meanwhile, the Commerce Ministry in a statement said that the expanded PTA would immensely benefit both sides as a wide array of concessions has been offered by the two countries on a number of products which will facilitate more trade.
Chile is the fourth largest trading partner of India in LAC region after Brazil, Venezuela and Argentina.
It also said that during the last few years, bilateral trade has been in favour of Chile because of import of high volume of copper ore which constitute more than 88 per cent of the imports from Chile.