Brazil, India Forge New Trade Agreements
(MENAFN) Brazilian President Luiz Inácio Lula da Silva hosted Indian Prime Minister Narendra Modi in Brasília on Tuesday, following their participation in the BRICS summit held in Rio de Janeiro.
Modi was welcomed with a formal ceremony at the Alvorada Palace, which featured an elaborate 114-horse military parade.
During bilateral talks, Lula and Modi explored ways to elevate the partnership between their nations, discussing cooperation in sectors such as trade, investment, defense, infrastructure, security, health, pharmaceuticals, space, renewable energy, and food production.
The two leaders also pinpointed promising areas for joint efforts, including artificial intelligence, cutting-edge technologies, and critical minerals.
Their wide-ranging conversation led to the signing of multiple agreements designed to deepen collaboration across these domains.
"Held fruitful talks with President Lula, who has always been passionate about India-Brazil friendship," Modi stated on X. "Our talks included ways to deepen trade ties and also diversify bilateral trade. We both agree that there is immense scope for such linkages to thrive in the coming times."
Among the outcomes of the meeting was a decision to initiate studies aimed at expanding the preferential trade agreement between India and Mercosur, the South American trade bloc led by Brazil for the current six-month term. Mercosur also includes Argentina, Uruguay, and Paraguay, with Bolivia in the process of joining. The current agreement with India dates back to 2004 and has yet to be revised.
"We have agreed to work on expanding the agreement between Mercosur and India," Modi said, stressing the importance of injecting "new impetus" into a trade relationship that "is far from reaching its full potential."
Despite both being key members of the BRICS alliance, India remains a relatively minor trading partner for Brazil. The current bilateral trade volume is significantly lower than Brazil’s trade with countries such as China, the United States, Argentina, and Germany.
President Lula admitted that commercial exchange with India "could be much higher" than the $12 billion recorded in 2024.
Amid growing global trade tensions—especially due to proposed U.S. tariffs under President Donald Trump—Lula has been working to diversify Brazil’s economic partnerships. He strongly criticized Trump’s recent threat to impose a 10% tariff on nations trading with BRICS countries.
In line with that strategy, Brazil is seeking to broaden the scope of its exports to India, which are currently concentrated in raw materials like crude oil and sugar.
Earlier this year, Brazilian aerospace firm Embraer SA—the world’s third-largest aircraft manufacturer—launched a subsidiary in New Delhi to expand operations within India’s defense and aviation industries.
On Tuesday, Modi received Brazil’s highest civilian honor, the Grand Collar of the National Order of the Southern Cross.
President Lula awarded the distinction in recognition of Modi’s role in advancing India-Brazil ties and promoting bilateral cooperation.
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