New Delhi, Sept. 14 -- India and the South American trade bloc Mercosur have begun negotiations to expand their existing trade agreement, the commerce ministry said on Monday, as New Delhi seeks to diversify export markets and deepen trade ties amid global economic turmoil.

The agreement, operational since June 2009, currently provides India with duty concessions on 450 tariff lines, or product categories, while Mercosur offers concessions on 452. Bilateral trade between India and the bloc stood at $21 billion in 2025.

Commerce and industry minister Piyush Goyal and Uruguay's minister of foreign affairs Mario Lubetkin announced the start of the negotiations, according to the the commerce ministry statement.

Both sides are "in the proce...