PERU AND INDIA FORGING A SHARED FUTURE

During his visit to New Delhi—the first by a Peruvian Foreign Affairs Minister in 38 years—The Blue Moon Magazine had the privilege of sitting down with H.E. Mr Elmer Schialer, Peru’s Minister of Foreign Affairs. In an engaging and insightful conversation, Minister Schialer delved into the motivations behind rekindling Peru-India relations, opportunities for bilateral collaboration in trade, technology and renewable energy and his vision for deepening South-South partnerships amidst a shifting multipolar world order. He also highlighted Peru’s participation in the Raisina Dialogue and shared strategic perspectives on fostering inclusive growth, cultural diplomacy and addressing global challenges together.  

                                                                                                 --------Jjuliaa Gangwani

1. After 38 years, your visit to India marks a significant moment in Peru-India relations. What motivated this re-engagement, especially amid global geopolitical turbulence and the rise of a multipolar world order? How does this align with Peru's foreign policy priorities and what opportunities does it open for deeper collaboration?

H.E. : My visit underscores Peru’s commitment to diversifying partnerships in a multipolar era, prioritizing South-South collaboration and shared priorities such as sustainable development, technological innovation and inclusive trade. Amid global turbulence, aligning with India—a key Global South partner—opens avenues of collaboration for mutual benefit in trade and commerce, agriculture and food security, mining and minerals, renewable energy and the environment, education and culture, defense and security, tourism and connectivity, pharmaceuticals and particularly in information technology communications, while strengthening multilateral cooperation for a balanced world order.

2. The Raisina Dialogue is a prestigious platform addressing global challenges. What strategic importance does Peru attach to its participation and how do you see this aligning with Peru's national development goals? Are there key areas, such as economic partnerships, technological collaboration, or multilateral diplomacy, that Peru aims to prioritize at this forum?

H.E.: Peru's participation in the Raisina Dialogue underscores its commitment to multilateral engagement and advancing national priorities through global collaboration. Aligning with Peru’s development goals, this forum offers opportunities to strengthen economic partnerships, particularly in trade, sustainable infrastructure and investment and to foster technological innovation in areas such as digital transformation and climate resilience. Prioritizing multilateral diplomacy, Peru aims to amplify its voice on climate action, inclusive governance and regional stability, ensuring global strategies complement its domestic agenda for equitable and sustainable growth.

3. India is playing an increasingly significant role on the global stage. How do you view its engagement with Latin America and Peru specifically, in this evolving geopolitical landscape? What opportunities or challenges do you foresee in strengthening this partnership?

H.E.: India's growing global influence presents a unique opportunity for Latin America and Peru to foster a strategic partnership. I envision enhanced cooperation in trade, technology and energy, driven by India's increasing demand for natural resources and Peru's rich mineral wealth. However, challenges involving logistical hurdles, competition from other emerging economies and building deeper institutional ties must be addressed to fully realize the potential of this partnership. Strengthening this partnership could bolster South-South cooperation, balancing global influence amid shifting dynamics.

4. Peru-India trade remains heavily centered on goods like minerals and pharmaceuticals, while the services sector is underexplored. What measures could help diversify this trade relationship, tapping into areas like IT, tourism and education? How might both nations use emerging technologies, such as green tech, to foster a more balanced and dynamic partnership?

H.E.: To diversify trade, Peru and India must work together to overcome existing challenges and prioritize service-based trading. Establishing IT hubs and innovation centers can foster collaboration in software development, AI, and data analytics. Additionally, joint initiatives in sustainable development, clean tech research and eco-tourism can drive growth in services and align mutual climate goals, promoting balanced and tech-driven economic ties.

5. Investments between Peru and India remain limited despite immense potential. What policies or partnerships could attract more private-sector participation? How can both nations collaborate in sectors like renewable energy, technology, and agribusiness to unlock these opportunities?

H.E.: To unlock the immense potential between Peru and India, finalizing the FTA negotiation and streamlining regulatory frameworks and tax incentives is crucial to attract private-sector investments. Establishing public-private partnerships in renewable energy, technology and agribusiness can also drive growth. Creating joint ventures and innovation hubs will foster collaboration and knowledge sharing, while enhancing trade facilitation and logistics infrastructure will reduce costs and increase efficiency.

By working together, Peru and India can develop renewable energy projects such as solar and wind farms and collaborate on technology initiatives, including AI, IoT, and cybersecurity. Promoting agribusiness partnerships, focusing on sustainable agriculture and food processing, will also be beneficial.

6. In the era of rapid technological advancements, how can Peru and India collaborate in areas like digital infrastructure, AI and renewable energy? What frameworks could drive mutual benefits while addressing shared goals like sustainable development and economic growth?

H.E.: Peru and India can harness technological advancements through joint frameworks in digital infrastructure, AI and renewable energy. Collaborative investments in digital infrastructure, AI partnerships between tech hubs and academia and aligned policies for cross-border renewable energy ventures can drive growth and sustainability. A bilateral "Green Tech Corridor" can streamline R&D, skill exchanges and pilot projects. To sustain momentum, both nations should prioritize public-private partnerships, harmonize regulatory standards and embed climate-smart targets into trade agreements. This collaboration can drive shared prosperity, advance global climate goals and promote digital equity.

7. Beyond current collaborations, which underexplored sectors—such as cultural exchange, agricultural innovation or climate-resilient infrastructure—hold promise for deeper Peru-India engagement? How can joint initiatives in these areas address priorities like inclusive growth and regional stability?

H.E.: Beyond current collaborations, Peru and India can deepen their engagement by exploring underexplored sectors like cultural exchange, agricultural innovation and climate-resilient infrastructure. These areas offer immense potential for mutual benefit, driving sustainable development and strengthening their bilateral relationship.

Cultural exchange programs can foster people-to-people connectivity, while agricultural innovation can enhance food security and sustainable farming practices. Climate-resilient infrastructure initiatives can help mitigate climate change impacts, supporting regional stability and inclusive growth.

8. The Peru-India FTA has been under negotiation for nearly a decade. What are the main hurdles and how soon might it be finalized? Once implemented, how could the FTA drive growth in sectors like agriculture, critical minerals and green technologies?

H.E.: The Peru-India Free Trade Agreement (FTA) has been underway since 2017, with the sixth round of negotiations taking place in February 2024. Key challenges to finalizing the agreement include reconciling differences in tariffs, sanitary measures, and technical barriers to trade. Once implemented, the FTA is expected to drive growth in sectors like agriculture by increasing market access and reducing tariffs on agricultural products, benefiting farmers and consumers in both countries.

The agreement could also facilitate trade in critical minerals like copper, gold and silver, supporting industries like electronics and renewable energy. Additionally, the FTA could promote the exchange of green technologies, expertise and investments, helping both countries transition to a more sustainable economy.

9. Peru and India share rich cultural histories. How can cultural diplomacy foster deeper connections between the two nations? Could initiatives like digital cultural platforms, joint educational programs or creative industries amplify people-to-people engagement while also boosting tourism and economic ties?

H.E.: Peru and India can leverage cultural diplomacy to foster deeper connections between the two nations. Initiatives like digital cultural platforms, joint educational programs and creative industries can amplify people-to-people engagement, boost tourism and strengthen economic ties. By promoting cultural exchange and collaboration, our countries can celebrate their rich cultural heritage, enhance mutual understanding and create new opportunities for cooperation and growth.

10. As we conclude, what message would you like to share with the people of India about Peru’s vision for this partnership? How do you see Peru and India working together to address global challenges like climate change while advancing shared goals of economic and cultural progress?

H.E.: I would like to share a message with the people of India about Peru's vision for this partnership. Peru envisions a collaborative relationship with India that tackles global challenges like climate change while driving economic and cultural progress.

By working together, both nations can share knowledge, expertise and innovative solutions to mitigate the impacts of climate change, such as rising sea levels, glacial melt and extreme weather events. Peru and India can join forces to promote sustainable development, renewable energy and green technologies, ultimately reducing their carbon footprints and creating a more environmentally friendly economy.

This partnership can also foster cultural exchange, education and tourism, enriching the lives of citizens in both countries. By combining their strengths and resources, Peru and India can create a powerful alliance that drives positive change and prosperity for generations to come.