On the invitation of the President of India, H.E. Dr. Ricardo Lagos, President of Chile, was on a State Visit to India from 18 to 22 January, 2005. This was the first-ever visit by a Chilean Head of State to India.

During this visit, a Framework Agreement on Economic Cooperation was signed between India and Chile on January 20, 2005. This Agreement envisages Preferential Trade Agreement between the two sides to be concluded by September 2005. The Framework Agreement also provides for a Joint Study Group to identify the potential for cooperation between the two sides in trade in goods and services, investments and other areas of economic cooperation.