new delhi, Sept. 10 -- India aims to conclude free-trade agreements (FTAs) with Peru, Chile and Mexico on priority, as they could absorb about 20% of goods shipped to the US without major supply-chain changes, said three people close to discussions. "Indian exporters stand to gain as FTAs with Peru, Chile, and Mexico could open a stronger foothold in Latin America, North America, and trans-Pacific trade, while also creating indirect linkages to Europe and Asia-Pacific markets," said the first of the three people mentioned above. The push comes after US imposed 50% duties on Indian goods, prompting New Delhi to accelerate efforts to diversify its export basket and cut reliance on the US. India shipped $86.5 billion worth of goods to the US in FY25, accounting for 20% of its total merchandise exports of $433.56 billion. "Peru, Chile, and Mexico together could absorb at least 20% of that volume, or about $17.3 billion worth of Indian goods," the third person said. "The FTAs would particularly benefit engineering goods, textiles, and gems and jewellery, which together account for $40.01 billion of India's exports," added the second person. Nearly 20% of these shipments-worth close to $8 billion-could be immediately diverted to the three Latin American markets once FTAs are in place, without major supply-chain realignment. India exports textiles worth $10.91 billion, engineering goods worth $19.16 billion, agriculture worth $2.53 billion, gems and jewellery worth $9.94 billion, leather worth $948.47 million, marine products worth $2.68 billion, and plastics worth $1.92 billion to the US. According to a Global Trade Research Initiative, Trump's tariffs could restrict these exports by as much as 40%. Queries sent to the Union commerce ministry remained unanswered. India and Mexico signed a Bilateral Investment Promotion and Protection Agreement in 2007, but it was terminated in 2019. However, a Double Taxation Avoidance Agreement and several memorandums of understanding remain in place. "The government is working to expedite discussions for an FTA with Mexico or to initiate a formal trade agreement to fast-track exports," the third person added. FTA talks with Peru began in 2017, with the latest round held in August 2025. India and Chile launched the Comprehensive Economic Partnership Agreement talks in April 2025. The first round, held from 26-30 May in New Delhi, covered 17 thematic tracks. India's trade with Latin American markets shows growing export potential, even as imports continue to outpace shipments. Exports to Peru rose from $0.92 billion in 2023-24 to $1.00 billion in 2024-25, while imports surged from $3.11 billion to $4.98 billion. In Chile, Indian exports remained steady at around $1.15 billion in 2024-25, compared with $1.18 billion in 2023-24, while imports climbed sharply to $2.60 billion from $1.51 billion. Mexico is India's largest trade partner among the three, with exports growing from $5.32 billion in 2023-24 to $5.75 billion in 2024-25. Imports moderated slightly from $3.10 billion to $2.87 billion....