Chilean fruit exports to India grew by 174 per cent to US$40m in the first six months of 2014 according to new figures from Chile’s central bank. As a result India moved three places up the rankings to become the sixth most important destination for Chilean fruit shipments in the first half of the year.
The recently elected government, led by prime minster Narendra Modi, has made trade reform one of its top priorities and is committed to opening up the Indian market to foreign trade.
Chile and India are in talks to expand a partial scope agreement into a full free trade agreement creating new opportunities to fruit exporters and other sectors such as the mining industry.
The expansion of India’s middle class has brought an increase in consumer purchasing power and the adoption of more westernised consumption habits, which is generating more demand for fresh fruits and vegetables.
Ronald Bown of Chilean exporter association Asoex said although India does not yet have the necessary infrastructure in place to handle fresh produce imports, the situation is changing rapidly.
“Year on year we’re seeing a strong increase in the volume of fruit we export to India and given the country has more than 1bn inhabitants, there is significant potential to further develop the market,” Bown noted.
