Country profile

PERU

MARCH 22, 2025

Federation of Indian Chambers of Commerce and Indsutry
Federation House, New Delhi
 India – Peru Bilateral Economic Relations

1. Executive Summary
An economic model country for the past 15 years, Peru's growth peaked at an average of 6%
between 2004 and 2012. However, Peru faced economic difficulties in 2015, and while the
situation has improved since, growth levels haven't been able reach the same rates they
used to. In 2019, GDP grew 2.2%, driven by sound fiscal and monetary policies and by
growth in services, mining and fuel, and manufacturing.

According to the updated IMF forecasts from the 14th April 2020, due to the outbreak of the
COVID-19, GDP growth is expected to fall to -4.5% in 2020 and pick up to 5.2% in 2021,
subject to the post-pandemic global economic recovery.Peru recorded a budget deficit of 1%
of the GDP in 2019, and it should remain stable in 2020 and 2021. Inflation increased and
reached 2.1%, and it should remain practically unchanged in the next couple of years, at
1.7% in 2020 and 1.8% in 2021 (April 2020 World Economic Outlook IMF). Furthermore,
public debt was cut almost in half, from 44.3% of the GDP in 2004 to 26.9% in 2019 - one of
the lowest of Latin America.
IMF anticipates the government debt to slightly increase in 2020 to 27.2% and decrease in
2021 to 26.6%. The economy’s overall stable and strong performance has allowed the
government to increase its revenues and balance the budget. In October 2019, the
government announced it would be implementing some stimulating measures, such as an
increase in minimum wage and pension, tax relief measures for consumers, and USD 4
billion public investment plan that aimed to reactivate several public infrastructure
projects.In 2019, lower international commodity prices - including copper, the leading
Peruvian export commodity - led to a temporary reduction of private investment, less fiscal
income and a slowdown of consumption.
In 2019, the unemployment rate throughout Peru has remained stable, at 6.6% and is
expected to slightly increase to 7.1% in 2020 and to 7.3% in 2021, due to the outbreak of the
COVID-19 pandemic. However, the informal economy continues to employ a large part of
the active population. Moreover, the country has high levels of inequality, with a significant
concentration of wealt, and a poverty rate of 21.7%. About 7 million Peruvians now live in
poverty, 44% of whom are in rural areas. There are serious regional disparities in poverty
throughout the country, with the highest numbers being in the Andean and Amazonian
regions.The industry sector generates 31.5% of the GDP, employing 15.6% of the active
population. Peru has a large and dynamic mining industry, mainly for copper and gold
extraction. Peru has been a mining economy since colonial times, and the country is the
world’s top producer of silver, the fifth producer of gold, the second producer of copper, and
an important supplier of zinc and lead. Large mining projects are expected to begin in the
next years, which could further increase the importance of the mining sector. The country
also has large reserves of natural gas and oil, although Peru is a net energy importer. The
main manufacturing activities are textiles, consumer goods, food processing and fish
products. Furthermore, although the Peruvian government has tried to disperse industrial
production, the country's main industries are within the greater Lima area.
2. Political set-up
 Government type: Unitary presidential republic
 Chief of State: President Dina Boluarte
 Legislative Branch: The legislative branch of Peru is vested in the Congress of the Republic
of Peru, which is a 130-member unicameral house. The legislators are elected for five-year
terms on a proportional representation basis. The legislation is voted on in Congress, then
sent to the president, who may approve it.
 Next elections: 2026

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 3. Quick Statistics of India and Peru (Year: Apr 2024; Unit: US$)

India Peru
GDP (PPP) 14.59 trillion GDP (PPP) 556.6billion
GDP (Official Rate) 3.94 trillion GDP (Official Rate) 266.80 billion
GDP Growth Rate 6.8% GDP Growth Rate 0.16 %
Consumer Price 4.6% Consumer Price 6.27%
Population 1.44 billion Population 33.846 million
Source: IMF Data Mapper, World Bank & CIA Factbook

4. Trade & Investment indicators with world (Year: 2023; Unit US$ million)

India Peru
Merchandise 431,574 Merchandise 63,074
Exports Exports
Merchandise 672,231 Merchandise 52,329
Imports Imports
Services Export 337, 542 Services Export 5,808
Services 246, 495 Services Imports 13,149
Imports
Top trading US, UAE, China, Singapore, Top trading China, United States,
partners Hongkong Bangladesh partners Japan, Canada, Korea
Prime Exports Food items, Fuels, Prime Exports Coffee, tea, mate,
Manufactured Goods, Ores cereals, oil seeds, lac,
and Metals gums, sugars, organic
chemicals
FDI outflows as 0.4% FDI outflows as 0.1%
% of GDP % of GDP
Key sectors of Chemicals, Food Key sectors of Agriculture, industry and
economy processing, economy services, extraction,
Pharmaceuticals, Steel, manufacturing, natural
Software, Transportation resources.
equipment and Textiles
Source: UNCTADSTAT

5. Multilateral engagements

Peru: UN and WTO, United Nations Security Council Reforms

India: India has engagement with UN, ADB, WTO, ASEM, BIMSTEC, BRICS, RCEP, SCO, G-20,
G8+5, IBSA, IOR, ACD, Dialogue partner with ASEAN, East Asia Summit etc, where it regularly
presents its perspective.

6. Major Economic Agreements With world

Nearly 95% of Peru's exports are covered by Free Trade Agreements currently in force, which
enables Peruvian products to enter, subject to the rules of origin of each trade agreement,
under preferential conditions to 53 countries, including Canada, Chile, China, the member
countries of the European Union, Japan, Singapore, South Korea, Thailand and the United States,
among others. The country is seeking to position itself as a regional hub for trade between Latin
America and the APEC countries (Asia-Pacific Economic Cooperation).
With India:
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  India and Peru are in final stage of signing a PTA.

7. Recent Bilateral visits

 Minister for Finance, Corporate Affairs & Information & Broadcasting (participated in World
Bank/IMF Annual Meetings and Meetings of G24 and the Commonwealth FMs – October
2015.
 MOS Railways Shri Rajen Gohain transited through Lima in 19 & 22 April 2018 on his way to
La Paz

8. India- Peru bilateral Trade

India-Peru Merchandise Trade (US$ million)

2019-2020 2020-2021 2021-2022 2022-2023 2023-24

EXPORT 764.00 764.69 897.55 865.79 920.09
5.96 17.37 -3.54 6.27
%Growth 0.09
IMPORT 1,575.09 1,520.88 2,707.38 2,250.75 3,114.31
%Growth -34.52 -3.44 78.01 -16.87 38.37
TOTAL 2,339.09 2,285.57 3,604.93 3,116.54 4,034.41
TRADE
%Growth -25.18 -2.29 57.73 -13.55 29.45
Source: Department of Commerce

Top 10 Export items: Ores, slag, ash, Gems, precious metals, Fruits, nuts, Mineral fuels
including oil, Copper, Food industry waste, animal fodder, Fish, Knit or crochet clothing,
accessories, Zinc, Coffee, tea, spices

Top 10 Import items: Petroleum/petroleum products, chemicals, plastic, machinery, wheat,

corn, soybean products, vehicles, TV sets, front-end loaders, telecom equipment and
telephones, paper, cotton, and medicines.

9. Bilateral Investments
 FDI statistics:
 Top sectors for Peru investment: Mining, soft beverages, Lubricants
 Focus States for Peru Investors: Delhi/NCR, Haryana, Maharashtra
 Top sectors for Indian investment: IT, Mining, Motor Cars, Vehicles, Two Wheelers, Agro
Chemicals
 Top Indian companies in Peru: IFFCO, Zuari Agro, TCS, Tech Mahindra, Redbus, Bajaj Auto,
TVS Motors, Mahindra and Mahindra

10. Potential sectors of cooperation

 Mining, Energy, Hydrocarbons, Healthcare including pharmaceuticals, Automobile, Auto
parts and components, IT, Ayurveda
11. Cooperation in Start- ups and Innovation
 Government Support: The Peruvian government has shown commitment to promoting
innovation through various programs, grants, and incentives for research and
development (R&D) activities. These initiatives aim to encourage start-ups and
established companies to invest in innovation.
 Technological Advancements: As technology continues to advance, it opens up new
opportunities for innovation in Peru. The rise of digitalization, artificial intelligence, and
data analytics has the potential to transform industries and create new business models.

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  Access to Funding: Access to funding is crucial for supporting innovative start-ups. The
development of angel investor networks, venture capital firms, and crowdfunding
platforms in Peru has expanded the funding options available to entrepreneurs.
 Collaboration with Universities and Research Institutions: Collaboration between start-
ups and academic institutions can lead to groundbreaking research and development.
Many universities and research centers in Peru have been actively engaging with the
start-up community

12. Trade and Investment Issues (including NTB’s)

Sector Trade & Investment Issues

IT  Funding is an issue
 Availing credit from EXIM Bank is not easy.
 Private funding is very expensive (at times 2.5 times
higher)
 Procuring Credit facilities for SMEs is very difficult.
 Indian SMEs lose out on this.

Mining  Increased burden of the mining royalty tax

Petroleum  Issues handled by Ministry of Petroleum.

Pharmaceutical  Regulatory mechanism for drugs – Registration of drugs

with DIGEMID (the drug control authority) is very
difficult, costly and time consuming practically shutting
the window to Indian pharmaceuticals. Also cosmetic
products need DIGEMID registration, Peru does not
allow Indian products such as herbal cosmetics to
enter.
 In Peru, Pharma requires GMP certification as India is
not among the 15 countries. GMP member countries
have an advantage over non-members as registration
process gets lengthy and cumbersome

Textiles  Poly viscose fabrics: Peru in April 2011 imposed

antidumping duty on the import of Poly viscose fabrics
from India. The duties are in the range of US$ 1.12 to
2.76 per kg. The duty, after a sunset review, has
recently again been extended for a further period of 5
years w.e.f April 2016.
General Issues  Only single entry business visa is granted
 Getting multiple entry business visas is not granted
 Social security deposit is collected from expatriates to
grant work / resident permit visas. This deposit is not
refundable

13. FICCI Platforms

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  MOU partners in Peru: Pro-inversion Lima Chamber of Commerce, Indian Chamber of
Commerce in Peru (INCHAM), Innovando El Futuro – Fundacion Peru (The Peru Foundation),
Peruvian Confederation of Private Enterprises (CONFIEP)
 Forum of Parliamentarians: None
 State collaboration: None

14. Other Key institutional engagements

 Think Tanks, Research institutions, universities in country: GRADE

 Law firms and consultants: Caeheaux, Cavazos & Newton, Holland & Knight LLP

15. Indian Diaspora

 The size of the Indian community in Peru is small, numbering around 450, including PIOs,
mainly engaged in business and trade. The volume of travel between Peru and India for
tourism and business is growing. More Indian professionals are coming to Peru with the
entry of Indian companies. In addition, there are some Indian nationals with the
Missionaries of Charity and other Christian organizations in Lima, Chimbote and Puno.

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