The recently initiated talks for a Comprehensive Economic Partnership Agreement (CEPA) between India and Chile present a significant growth opportunity for Indian textile exports. While specific recent figures for textile's exact percentage of India's total exports to Chile are not readily available, data from 2024 indicates a diverse range of Indian textile articles being exported, including apparel, made-ups, cotton, man-made fibers, and technical textiles. This is a notable, though perhaps not dominant, presence in the Chilean market.

India currently faces stiff competition in the global textile market from major players like China, Bangladesh, and Vietnam. However, the anticipated tariff reductions under a strengthened FTA/CEPA with Chile could significantly boost India's competitiveness, making its products more attractive to Chilean buyers. This is particularly promising for segments like technical textiles and fabric exports, where India possesses considerable expertise and capacity.

To fully capitalize on this opportunity, India must address several key areas. Upgrading production facilities to meet international quality standards and efficiency benchmarks is crucial. Furthermore, tackling existing logistical constraints and strengthening transshipment routes will ensure timely and cost-effective delivery of goods to Chile, enhancing the reliability of Indian suppliers. By focusing on these strategic improvements, India can leverage the FTA to significantly expand its textile footprint in the South American market.