India, Brazil eye $20 bn bilateral trade in 5 years

The decisions were announced after talks between PM Narendra Modi and Brazilian President Luiz Inácio Lula da Silva during the latter’s visit to India, where both sides also launched a wide-ranging “Digital Partnership for the Future” and signed multiple sectoral agreements.

Addressing a joint press interaction after delegation-level talks, Modi described Brazil as India’s largest trading partner in Latin America and said the economic relationship was “not merely a number but a reflection of trust”.

Officials said the two leaders directed their teams to work toward eliminating trade obstacles and improving market access, while also addressing anti-dumping and countervailing duty concerns to boost business confidence.

They also agreed to advance negotiations to expand the India–MERCOSUR Preferential Trade Agreement to cover a broader range of agricultural and industrial goods.

Bilateral trade registered a 25.5 per cent increase in 2025, and both countries emphasised maintaining momentum through stronger investment frameworks and business facilitation mechanisms. The entry into force of the Cooperation and Facilitation Investment Agreement and amendments to the double taxation avoidance convention were welcomed as steps toward a predictable investment environment.

A memorandum recognising electronic certificates of origin was also signed to simplify customs verification and improve transparency in trade flows.

President Lula’s visit — his fifth to India — follows PM Modi’s trip to Brazil last year and is aimed at strengthening the strategic partnership established in 2006 across defence, food security, energy transition, digital transformation and industrial cooperation.

A major outcome of the visit was the Joint Declaration on Digital Partnership for the Future, under which both countries will collaborate on digital public infrastructure, artificial intelligence applications and data protection frameworks.

President Lula attended the second AI Impact Summit during the visit, and the two leaders discussed joint projects, including model training, educational applications and innovation partnerships between research institutions and startups. They also supported global initiatives on AI governance and ethical standards.

The countries announced cooperation under the Open Planetary Intelligence Network to use digital platforms for climate action and sustainable development across the Global South.

India and Brazil agreed to expand collaboration in pharmaceuticals, including joint development of medicines and vaccines and cooperation between regulators for faster approvals. Agreements were also signed on rare earth minerals, renewable energy and steel supply chains, aimed at strengthening resilient industrial value chains.

Both sides highlighted opportunities in aviation, oil and gas exploration, sustainable fuels and critical minerals essential for clean energy technologies.

The leaders reaffirmed defence cooperation, including industrial partnerships and maintenance collaboration for Scorpene-class submarines. They also agreed to expand cooperation in cybersecurity, space research and maritime security.

Condemning terrorism in all forms, Brazil expressed support for India following recent attacks in Jammu and Kashmir and New Delhi, and both countries pledged closer coordination against terror financing.