The visit comes amid India’s effort to reduce dependence on China, which dominates global rare earth production, while expanding partnerships with resource-rich countries. Lula, who is leading a delegation of ministers and business leaders, is also expected to explore ways for deeper economic and industrial cooperation between the two emerging economies.
Trade cooperation and more: what’s on the agenda
A major outcome expected from the PM Modi-Lula meeting is the signing of an MoU on critical minerals, aimed at securing long-term supply chains and strengthening resource cooperation. Officials said the discussions will also focus on increasing bilateral trade, which will cross $15 billion in 2025, with both countries targeting $20 billion by 2030.
The talks will include efforts to enhance cooperation in strategic sectors such as clean energy, mining, aviation and manufacturing. Recent developments include a partnership between Brazilian aerospace firm Embraer and Adani Group to manufacture aircraft in India, indicating growing industrial cooperation.The leaders are also expected to exchange views on global economic challenges and multilateral trade tensions following tariff measures imposed by the United States in 2025. According to experts at the Council on Energy, Environment and Water, India has strengthened supply chain partnerships with France, the EU and others, while also prioritizing Global South partnerships to secure mineral access and shape emerging trade frameworks.Brazil remains India’s largest trading partner in Latin America, exporting crude oil, sugar, iron ore and agricultural commodities. Lula’s trip also includes participation in global technology discussions, and he is scheduled to visit South Korea for talks with President Lee Jae Myung and business leaders.The meeting comes as India looks to diversify sourcing of rare earth elements needed for electric vehicles, renewable energy systems, electronics and defense from countries like Brazil, which has the world’s second largest reserves.
