Opinion Chile, India and South-South solidarity

Chile is the world’s largest producer of copper and a leading producer of lithium and other rare-earth elements. This makes it important for India’s advancements in new and emerging technologies as well as its green energy transition. Investments in Chile by Indian companies such as Coal India Limited (CIL), Hindustan Copper Limited (HCL), Hindalco, Vedanta, Adani, JSW, and JSPL are crucial for the former’s mineral exploration, sustainable mining practices, and value-added mineral processing. Therefore, both countries are increasingly focusing on resilient supply and value chains. As an advocate and pillar of strength for other Global South countries, India is keen on sharing its experience and expertise in DPI (digital public infrastructure), renewable energy, railways, and space with Chile.

Of the four MoUs between the two countries, the first is a Letter of Intent on Antarctic Cooperation. Chile is a “Gateway to the Antarctic” for India. The second was the signing of the Cultural Exchange Programme (2024-2028). Despite the vast distance between the countries, Indian art, culture, and cuisine are a part of India’s soft power in Chile, so much so that the latter has celebrated National Yoga Day every year on November 4 since 2021. The agreement also aims to deepen these existing cultural ties by exploring opportunities in traditional medicine, such as Ayurveda, and classical dance forms, such as Kathakali. In the joint press briefing, President Boric invited the Indian cinema industry to shoot in the beautiful landscapes of Chile.

The third agreement is an MoU on disaster management, and the fourth is on cooperation between Codelco (a Chilean state-owned copper mining company) and Hindustan Copper Limited, India (HCL). However, what caught most eyes was the India-Chile Mining Industry Round Table, which discussed the renewal of the existing India-Chile MoU on Geology and Mineral Resources, ensuring a more robust and future-ready framework for collaboration in the critical minerals domain.

Copper constitutes about 90 per cent of Chile’s exports to India. The two sides now aim to enhance cooperation in exploration and mining of, and trade in, lithium. Lithium is a critical mineral in the production of lithium-ion batteries, which power almost all modern portable electronics and are crucial for the green energy transition. This makes not only Chile but also the other two “Lithium Triangle” countries, Bolivia and Argentina, important for India’s military modernisation, advancements in technology, and economic security.

India’s outreach to Chile is also a reflection of its broader forays into South America. While these endeavours are driven by strong pull factors encouraging India to tap into the potential inherent in these resource-rich countries, the overwhelming Chinese presence in the region is acting as a force “pushing” India to act before it is too late. South American countries are already on the verge of falling into China’s “debt trap”. Ecuador, for instance, has agreed to sell 80 to 90 per cent of its crude oil to China in 2024 in exchange for $6.5 billion in Chinese loans. China has also been showing maritime belligerence in the territorial waters of these countries through Chinese trawlers invading the rights of the fishermen of these countries.

While Boric’s left-wing government in Chile was also believed to be giving in to the Chinese pressure, his India visit is a reflection that is not the full picture. Chile’s increasing engagement with India could, therefore, be coming to reduce its export dependence on China.

There is, in addition, a rediscovered South-South solidarity. The “resource-curse” destiny has eroded the trust with countries like the US. Chinese engagement with the Global South also comes with a brazen thrust of its geopolitical and geoeconomic interests. In stark contrast, the Indian engagement is based on mutual respect, non-interference, and respect for sovereignty. Delhi’s approach has earned it the trust of several Global South countries, with Chile committing support for India’s permanent membership at the UNSC and other UN reforms.

The writer is assistant professor, Centre for Canadian, US & Latin American Studies, School of International Studies, JNUolumn