India and Peru: Distance Makes Our Economic Ties Grow Stronger

Peru's investment environment, natural resources and trade connections make it a valuable partner

- JYOTI VIJ

For an Indian, Peru is far away geographically, nestled as it is on the Pacific coast of South America, but also in terms of its presence in public discourse. Yet, its economic ties with India have grown rapidly, with trade having risen from $66 million in 2003-04 to $4 billion in 2023-24; and there is greater potential to be tapped.

Peru is regarded as one of Latin America's most stable economies, primarily because of sound macroeconomic policies and rich natural resources. The Organization of Economic Co-operation and Development has projected its GDP growth at 2.8% in 2025 and 2.6% in 2026.

The Peruvian government is treading the path of fiscal prudence, which has had a salutary effect on growth. With inflation under control, Peru's central bank is expected to keep lowering its policy rate. The government is keen to boost investment, cut red tape, promote small-business formalization and accelerate infrastructure growth.