Prime Minister Narendra Modi and President Luiz Inácio Lula da Silva on Saturday agreed to double bilateral trade to $30 billion by 2030, while signing key agreements on critical minerals and the steel supply chain, amid growing global trade uncertainty.
Trade Target Raised To $30 Billion
Two-way trade between India and Brazil crossed $15 billion in 2025, marking a 25% jump over 2024. The leaders had earlier set a $20 billion target for 2030, but during their latest talks in New Delhi, they decided to significantly upscale the ambition.
Modi described Brazil as India’s largest trading partner in Latin America, calling trade “a reflection of trust.”
Rare Earths & Critical Minerals Pact
A major highlight of the meeting was the agreement on rare earth and critical minerals cooperation, aimed at building resilient supply chains.
India is actively seeking to diversify rare earth sourcing to reduce dependence on China. Brazil, which holds vast reserves of iron ore and other critical minerals, is expected to collaborate in:
- Exploration and mining investments
- Steel sector infrastructure
- Supply chain resilience
Modi termed the rare earths pact a “major step” towards strategic coordination.
Focus On Defence, Energy & Technology
The leaders pledged deeper engagement in:
- Defence and security cooperation
- Oil and gas
- Renewable energy
- Healthcare and pharmaceuticals
- Digital public infrastructure
In defence, discussions included cooperation on French-origin Scorpene submarines through Mazagon Dock Shipbuilders Limited and the two navies. Modi also invited Brazilian aviation giant Embraer to set up a Maintenance, Repair and Overhaul (MRO) facility in India alongside its proposed E175 assembly line.
Lula highlighted India’s strengths in IT, AI, biotechnology and space, calling it a “digital superpower,” while describing Brazil as a “renewable energy superpower.”
Trade Policy & Global Developments
The two leaders also discussed recent US trade policy shifts and the US Supreme Court verdict striking down sweeping tariffs announced by Donald Trump. Both sides agreed to study the implications before drawing conclusions.
They emphasised strengthening multilateralism and expanding the India-Mercosur Preferential Trade Agreement (PTA) to deepen economic cooperation.
Healthcare & Global South Cooperation
India committed to increasing the supply of affordable generic medicines to Brazil. Both leaders reiterated their joint push for equitable access to medicines and reform of global governance institutions.
On global issues, they stressed cooperation within the Global South, counter-terrorism alignment, and the need for peaceful resolutions to ongoing international conflicts.
Why This Matters
- Signals stronger South-South strategic alignment
- Boosts India’s mineral security strategy
- Expands defence and aerospace cooperation
- Positions both nations as champions of multilateralism amid global trade turbulence
The meeting marks a significant step in elevating the India-Brazil partnership from a trade relationship to a broader strategic and geopolitical alignment.