India, April 1 -- India and Chile on Tuesday announced they will begin negotiations for a comprehensive trade pact as Prime Minister Narendra Modi and Chilean President Gabriel Boric explored new avenues for cooperation in defence, critical minerals and technology.

The proposed comprehensive economic partnership agreement (CEPA) will build on a Preferential Trade Agreement that India concluded with Latin America's fifth-largest economy in May 2017. The move is also in line with New Delhi's focus on South America, where India has expanded its diplomatic footprint in recent years.

At a media interaction after his talks with Boric, Modi described Chile as India's "valued friend and partner country" in Latin America and said there is untapp...