India and Brazil on Saturday agreed to scale up bilateral trade to $30 billion annually by 2030 and signed a key cooperation pact on critical minerals, with Prime Minister Narendra Modi and Brazilian President Luiz Inacio Lula da Silva pledging to deepen strategic ties amid a shifting global economic landscape.
The two leaders also discussed the implications of the US Supreme Court striking down reciprocal tariffs imposed by President Donald Trump during their wide-ranging talks in the capital.
Secretary (East) in the ministry of external affairs P Kumaran said both sides reviewed developments in US trade policy and agreed to closely monitor the situation.
“Both leaders agreed that it is a rather new development that both sides need to study its implications and wait for further developments by the US administration,” he said, PTI reported.
“We will be essentially in wait and watch mode on how the administration responds to this judgement and whether any further steps are taken and to study the implications for our trade,” Kumaran added.
The discussions came after the US administration imposed a new 10 per cent global tariff following the Supreme Court’s decision striking down earlier reciprocal tariffs.
Trade target reset, strategic sectors in focus
Kumaran said Modi and Lula agreed that bilateral trade should at least double to $30 billion by 2030. India and Brazil recorded bilateral trade of $12 billion in 2024–25, including Indian exports of $6.77 billion and imports worth $5.43 billion.
“Brazil is India's largest trading partner in Latin America. We are committed to taking bilateral trade beyond USD 20 billion in the next five years. Our trade is not just a figure, it's a reflection of trust,” Modi said in his media statement alongside Lula.
Following the talks, the two countries signed nine agreements, including cooperation in rare earth and critical minerals and a joint declaration on a digital partnership. Memoranda of understanding were also concluded in mining, MSMEs, healthcare and traditional knowledge systems.
The leaders agreed to expand cooperation across defence, energy, healthcare and digital public infrastructure, emphasising stronger India-Brazil coordination to navigate geopolitical uncertainties.
“The agreement on critical minerals and rare earth is a major step towards building resilient supply chains,” Modi said.
Global South cooperation and security focus
Modi said India and Brazil share common positions on global governance and security challenges, stressing that reform of international institutions is necessary to address contemporary global issues.
“We believe that every problem must be resolved through dialogue and diplomacy. India and Brazil are unanimous that terrorism and its supporters are enemies of all humanity,” he said.
Lula, who is on a five-day visit to India to attend the AI Impact Summit and hold bilateral talks, condemned terror attacks in Kashmir and said terrorism must not be linked to any religion or nationality.
“The turbulent global environment requires India and Brazil to deepen our strategic ties,” Lula said, describing engagement between the two countries as a partnership of “superlatives”.
“We are not just the two biggest democracies of the Global South. This is a meeting of a digital superpower with a renewable energy superpower,” he said.
The Brazilian president also emphasised the need for reform of global institutions, including the UN Security Council.
“We emphasised our commitment to the UN reform, particularly of the UN Security Council so that it represents the interests of the Global South. Brazil and India are natural candidates to become permanent members of the Security Council,” he said.
Expanding cooperation across sectors
The talks also covered defence cooperation, including maintenance collaboration for French-origin Scorpene submarines under a tripartite arrangement involving Mazagon Dock Shipbuilders Limited and the Indian and Brazilian navies.
Brazilian aerospace company Embraer’s proposal to establish an assembly line for its E175 regional jet in India and the creation of a maintenance, repair and overhaul facility were also discussed.
Modi said cooperation in technology and innovation would benefit both nations and the broader Global South.
“We are also prioritizing our cooperation in areas such as Artificial Intelligence, supercomputers, semiconductors, and blockchain. We both believe that technology must be inclusive and it must become a bridge for shared progress,” he said.
The prime minister described energy cooperation as a key pillar of bilateral ties, highlighting collaboration in renewable energy, ethanol blending and sustainable aviation fuel, while welcoming Brazil’s participation in the Global Biofuel Alliance.
Brazil also proposed co-chairing the India-backed Coalition for Disaster Resilient Infrastructure (CDRI), an initiative Modi said would further strengthen global cooperation in disaster resilience.
Modi said Lula’s visit had infused new momentum into India-Brazil relations, adding that the partnership continues to play an influential role on the global stage and in advancing the aspirations of the Global South.