India & Brazil Forge Deeper Ties: Targeting $20 Billion Trade Boom

In a significant stride towards bolstering economic and strategic partnerships, India and Brazil have set an ambitious target to nearly double their bilateral trade to $20 billion within the next five years. This bold declaration emerged from crucial talks held on Tuesday between Indian Prime Minister Narendra Modi and Brazilian President Luiz Inácio Lula da Silva, aiming to expand collaboration across diverse sectors from defense to technology.

During their high-level meeting, both leaders unequivocally reaffirmed their "zero tolerance" approach to terrorism, vowing to combat both the menace itself and those who support it. Prime Minister Modi's visit to Brasilia for these bilateral discussions followed his attendance at the BRICS Summit in Rio de Janeiro.

The deepened partnership was solidified through the signing of six key agreements. These included crucial pacts on combating international terrorism and transnational organized crime, as well as an agreement on the exchange and mutual protection of classified information. Further reinforcing their commitment, memorandums of understanding (MoUs) were inked for cooperation in renewable energy, sharing large-scale solutions for digital transformation, intellectual property, and agricultural research.

"In today’s discussions, we talked about strengthening cooperation in every field," Modi stated during a joint media interaction with Lula. "We have set a target to take bilateral trade to $20 billion in the coming five years."

Drawing a unique parallel, Modi quipped, "Football is the passion of Brazil, cricket is the passion of the people of India. Whether the ball crosses the boundary or scores a goal, when both are in the same team, a partnership of $20 billion is not difficult." He also highlighted plans to expand the India-Mercosur preferential trade agreement.

Currently, Brazil stands as India's largest trade partner in South America, with two-way trade reaching $12.2 billion in 2024-25. Indian exports, totaling $6.77 billion, primarily comprised diesel, insecticides, chemicals, pharmaceuticals, and engineering products. Brazil, in turn, exported crude oil, soya oil, gold, raw sugar, cotton, wood, and iron ore to India.

Modi also underscored the burgeoning cooperation in the energy sector, emphasizing that environment and clean energy are shared priorities. "The growing cooperation in the field of defence is a symbol of our deep mutual trust," he added. "We will continue our efforts to connect our defence industries."

Technological collaboration is also on an upward trajectory, with both nations actively exploring cooperation in artificial intelligence and supercomputers. Efforts are underway to facilitate the adoption of India’s successful Unified Payment Interface (UPI) digital payments system in Brazil. Modi expressed India's eagerness to share its expertise in areas like digital public infrastructure and space with Brazil.

Regarding counter-terrorism, Modi reiterated the aligned thinking of both countries, based on "zero tolerance and zero double standards." He firmly stated, "We are clear that there is no place for double standards on terrorism. We strongly oppose terrorism and those who support terrorism." This sentiment was echoed by Lula who, shortly after India's Operation Sindoor on May 7, had extended support during a phone call with Modi on May 8.

Modi emphasized that India and Brazil have consistently worked in close coordination on the global stage. "As two large democratic countries, our cooperation is relevant not only for the Global South, but for the entire humanity," he asserted. "We believe that it is our moral obligation to raise the concerns and priorities of the Global South at global forums."

At a time of global tension and uncertainty, Modi highlighted the India-Brazil partnership as an "important pillar of stability and balance," advocating for the resolution of all disputes through dialogue and diplomacy.

In a gesture of profound respect, President Lula conferred the Grand Collar of the National Order of the Southern Cross, one of Brazil’s highest civilian honors, upon Prime Minister Modi.