"A joint study group will be formed after the new government takes charge. The group likely to be formed by June-July," Ambassador of Peru to India said on the sidelines of an interactive session with the Indian Chamber of Commerce.
The joint study group is the first step to begin negotiations for FTA.
Peru has signed 40-odd FTAs across the world including China and the European Union.
Paulinich said with an FTA in place bilateral trade will jump sharply from the current $1.5 billion.
He said Peru began exporting gold to India two years ago and that there are 4-5 gold mines which are keen to offer joint entrepreneurship opportunities to India.
"Currently, direct gold export to India is $250 million and we think with restrictions being relaxed there will be more export," he said.