Commerce and Industry Minister Piyush Goyal on Saturday said negotiations for a proposed India-Peru free trade agreement are unlikely to conclude anytime soon, citing concerns over market access in certain products.
"There are certain concerns. There are many products where we cannot offer them market access. I do not see Peru FTA happening very soon," Goyal said on the sidelines of the 17th Toy Biz International B2B Exhibition.
Trade between the two countries jumped 68% to $10 billion in 2025-26, from $5.98 billion the previous year. Exports stood at $1.4 billion and imports at $8.87 billion, leaving India with a trade deficit of $7.47 billion.
India mainly ships motor vehicles, cotton yarn and pharmaceuticals to Peru, while buying gold, copper ores and concentrates in return.
Gold, which makes up about 90% of India's imports from Peru, is likely to be the toughest sticking point in any deal, according to experts, since New Delhi would have to weigh duty concessions on it. Gold imports from Peru rose 78% to $7.9 billion in 2025-26, from $4.43 billion a year earlier.
Canada Talks To Resume
On a separate front, Goyal said an Indian team will travel to Canada on Monday for the next round of negotiations on the proposed Comprehensive Economic Partnership Agreement. "The Canada FTA is progressing well... we are trying that we should conclude it in the next six months or so," he said.
The two sides held their second round of talks in India on May 8. They have set a target of $50 billion in bilateral trade by 2030 — a steep climb from $7.95 billion in 2025-26, which was itself down 8.2% from $8.7 billion the year before.
Canada, home to over 425,000 Indian students, buys pharmaceuticals, iron and steel, seafood and cotton garments from India, and sends back pulses, coal, fertiliser and petroleum crude.
Brij Mohan Mishra, joint secretary in the Department of Commerce, is leading the talks for India, with Bruce Christie representing Canada.
(With PTI Inputs)
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