According to www.thehindubusinessline.com, Tamil Nadu has formally proposed long-term manufacturing partnerships with Peruvian companies amid bilateral trade between India and Peru exceeding $10 billion.
Strategic alignment amid FTA negotiations
Speaking at the reception commemorating Peru’s 205th Independence Day in Chennai on Monday, June 29, 2026, Tamil Nadu Industries, Investment Promotion and Commerce Minister S Keerthana emphasized that the proposed India–Peru Free Trade Agreement (FTA) is entering its final stages. She stated the agreement would open new avenues across mining, pharmaceuticals, renewable energy, and advanced manufacturing.
The minister noted that bilateral trade has now crossed $10 billion, positioning Peru as one of India’s largest trading partners in Latin America by import volume. “Our bilateral trade has now crossed $10 billion, making Peru India’s one of the largest trading partners in Latin America by imports. The proposed FTA promises to unlock even greater opportunities,” she said.
Manufacturing ecosystem meets resource strengths
Tamil Nadu has developed a globally competitive manufacturing base spanning automobiles, electric vehicles, electronics, aerospace, and precision engineering — supported by skilled talent, robust infrastructure, and policy stability. According to the report, the State’s capabilities align directly with Peru’s export profile: Peru remains a major global supplier of critical minerals including copper, silver, and zinc.
“As the world reorganises supply chains around resilience, clean energy and advanced manufacturing, Peru and Tamil Nadu are natural partners. When Peru’s resource strengths meet Tamil Nadu’s manufacturing capabilities, both our economies stand to gain,” S Keerthana added.
The State’s geographic advantages include proximity to major ports and integrated logistics corridors, while Peru holds significant reserves of copper and rare earth elements — resources essential for battery production, grid-scale renewables, and semiconductor manufacturing infrastructure.
Enduring partnerships over transactional investment
The Tamil Nadu government is shifting focus from short-term investment attraction toward durable industrial collaboration. “We are not merely looking for investors in Tamil Nadu. We are looking for long-term partners in Tamil Nadu’s journey,” said S Keerthana.
This approach includes cultural and symbolic linkages: the minister highlighted that her constituency, Virudhunagar, includes Sivakasi — which produces over 70 per cent of India’s fireworks. She expressed hope that “a small part of Sivakasi will light up Peru’s sky” during Peru’s 206th Independence Day celebrations next year.
Diplomatic momentum and implementation readiness
Javier Manuel Paulinich Velarde, Ambassador of Peru to India, affirmed Chennai’s growing role in trade, innovation, and international collaboration. He outlined expanding cooperation between Peru and India across trade, investment, tourism, education, and culture — with Tamil Nadu expected to serve as a key node in bilateral engagement.
R Dinesh, Honorary Consul of Peru in Chennai, confirmed that “the FTA negotiations are in the final stages and we hope this will unlock the next phase of growth.” He underscored Tamil Nadu’s readiness to leverage the agreement through strengths in manufacturing, logistics, agriculture, and value-added processing — sectors where Peruvian raw materials can be transformed into higher-value exports.
With global supply chains prioritizing resilience, Peru’s mineral endowment and Tamil Nadu’s industrial capacity present a concrete opportunity for co-investment in green infrastructure and advanced manufacturing — particularly in battery component production, solar module assembly, and EV supply chain integration.
Source: thehindubusinessline.com
Compiled from international media by the SCI.AI editorial team.
