India and Brazil on Saturday agreed to expand bilateral trade to $30 billion annually by 2030 and signed a landmark cooperation agreement on critical minerals, as Prime Minister Narendra Modi and Brazilian President Luiz Inacio Lula da Silva pledged to deepen strategic ties amid a changing global economic landscape.The two leaders also discussed the implications of the US Supreme Court’s striking down of reciprocal tariffs imposed by President Donald Trump during their wide-ranging talks in the capital.P Kumaran, Secretary (East) in the Ministry of External Affairs, said both sides reviewed the developments in US trade policy and agreed to closely monitor the situation.“Both leaders agreed that this is a new development and both sides need to study its implications and wait for further developments by the US administration,” he said, PTI reported.“We will essentially be in a wait-and-watch position to see how the administration responds to this decision and whether any further steps are taken and will study its impact on our business,” Kumaran said.The discussion came after the US administration imposed a new 10 percent global tariff following the Supreme Court’s decision to scrap previous reciprocal tariffs.
Business goals reset, strategic areas in focus
Kumaran said Modi and Lula agreed that bilateral trade should at least double to $30 billion by 2030. India and Brazil to record bilateral trade of $12 billion in 2024-25, which includes Indian exports of $6.77 billion and imports of $5.43 billion.“Brazil is India’s largest trading partner in Latin America. We are committed to taking bilateral trade beyond US$20 billion in the next five years. Our trade is not just a figure, it is a reflection of confidence,” Modi said in his media statement with Lula.Following the talks, the two countries signed nine agreements, including a Joint Declaration on Cooperation in Rare Earths and Critical Minerals and Digital Partnership. MoUs were also signed on mining, MSME, healthcare and traditional knowledge systems.The leaders agreed to expand cooperation in defence, energy, healthcare and digital public infrastructure, emphasizing stronger India-Brazil coordination to deal with geopolitical uncertainties.“The agreement on critical minerals and rare earths is a major step towards building resilient supply chains,” Modi said.
global south cooperation and security focus
Modi said India and Brazil share a common stance on global governance and security challenges, stressing that reform of international institutions is necessary to address contemporary global issues.He said, “We believe that every problem should be solved through dialogue and diplomacy. India and Brazil are unanimous that terrorism and its supporters are the enemies of all humanity.”Lula, who is on a five-day visit to India to attend the AI Impact Summit and hold bilateral talks, condemned the terrorist attacks in Kashmir and said terrorism should not be linked to any religion or nationality.Describing relations between the two countries as a partnership of “excellence”, Lula said, “In a turbulent global environment, India and Brazil need to deepen their strategic ties.”“We are not just the two largest democracies in the Global South. This is a digital superpower meeting a renewable energy superpower,” he said.The Brazilian President also stressed the need to reform global institutions, including the UN Security Council.“We stressed our commitment to reforming the United Nations, especially 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 in all areas
Defense cooperation was also discussed in the talks, including maintenance cooperation for the French-origin Scorpene submarines under the trilateral arrangement between Mazagon Dock Shipbuilders Limited and the Indian and Brazilian navies.Brazilian aerospace company Embraer’s proposal to set up an assembly line and build a maintenance, repair and overhaul facility for its E175 regional jet in India was also discussed.Modi said cooperation in technology and innovation will benefit both countries and the broader global south.“We are also prioritizing our cooperation in areas like Artificial Intelligence, Supercomputers, Semiconductors and Blockchain. We both believe that technology should be inclusive and it should become a bridge for shared progress,” he said.The Prime Minister welcomed Brazil’s participation in the Global Biofuels Alliance, highlighting cooperation in renewable energy, ethanol blending and sustainable aviation fuels, describing energy cooperation as a key pillar of bilateral relations.Brazil also proposed co-chairing the India-backed Coalition for Disaster Resilient Infrastructure (CDRI), an initiative which Modi said would further strengthen global cooperation in disaster resilience.Modi said Lula’s visit has injected new momentum into India-Brazil relations, adding that the partnership is playing an influential role on the global stage and in furthering the aspirations of the Global South.