Informist, Wednesday, Jul. 9, 2025

NEW DELHI – Prime Minister Narendra Modi and Brazil's President Luiz Inacio Lula da Silva, in their meeting Tuesday, set a target to increase bilateral trade between the two nations to $20 billion over the next five years, according to a government press release. Among the host of partnership initiatives that the countries decided on, the two leaders decided to expand the India-MERCOSUR Preferential Trade Agreement, the release said.

MERCOSUR is a trading bloc in Latin America comprising Brazil, Argentina, Uruguay, and Paraguay. Formed in 1991, MERCOSUR is the third-largest integrated market after the European Union and North American Free Trade Agreement. India had signed a preferential trade agreement with the bloc in January 2004 with the aim of expanding and strengthening the existing relations between the countries and promoting the expansion of trade by granting reciprocal fixed tariff preferences with the ultimate objective of creating a free trade agreement between the parties.

In 2024-25 (Apr-Mar), bilateral trade between New Delhi and Brasilia totalled $12.21 billion.

Modi and Silva discussed cooperation in the areas of trade and investment, defence and security, health and pharmaceuticals, space, renewable energy, agriculture and food processing, energy security, infrastructure development, digital public infrastructure and Unified Payments Interface, the release listed out. Besides, they explored avenues for collaboration in new areas of cooperation like critical minerals, new and emerging technologies, artificial intelligence and supercomputers, digital collaboration and mobility.

Taking stock of the ongoing cooperation in the energy sector, the two leaders also agreed to explore investment opportunities given the "immense potential" in the hydrocarbon as well as renewable energy sectors in both countries, the release added. The meeting was held in Brasilia after the BRICS Summit concluded in Rio De Janeiro on Monday.

In a joint statement released after the meeting, the government said that India and Brazil signed six memoranda of understanding in sectors involving defence and security, food and nutritional security, energy transition and climate change, digital transformation and emerging technologies, and industrial partnerships in strategic areas.

The leaders instructed their respective authorities to identify and address existing non-tariff barriers in bilateral trade, in order to unlock the full potential of trade exchanges between the two countries. "The leaders directed their relevant government agencies to work together towards strengthening bilateral cooperation in the (above) five priority pillars and to report on progress made to the Brazil-India Joint Commission," the release said.

Acknowledging the recent increase in investments in both directions and partnerships between Brazilian and Indian businesses, the leaders agreed to establish a ministerial-level commerce and trade review mechanism, aimed at boosting bilateral trade, commerce and investment. They also agreed to expedite enforcement of the Bilateral Investment Cooperation and Facilitation Treaty signed in January 2020, and the protocol amending the Convention for Avoidance of Double Taxation, signed in August 2022, to further encourage entrepreneurs to engage in bilateral business partnerships and joint ventures.

Regarding sectoral investments, the leaders noted that currently, Sustainable Aviation Fuel remains a major and viable pathway to reduce emissions from the aviation sector and that India-Brazil partnership can work in the deployment and development of the product. Modi and Silva asked oil and gas enterprises from both sides to engage in joint projects in offshore fields and to explore new avenues of collaboration, like carbon capture technologies.

At a time when India is diversifying its sources of critical minerals, the two leaders welcomed a joint collaboration between public and private companies from the two sides in new and emerging areas, including strengthening the supply value chains and global competitiveness in mineral exploration, mining, beneficiation, processing, recycling, and refining of critical minerals. China has imposed restrictions on exports of rare earth elements causing a severe shortage of the minerals, hindering production at many automobile facilities around the world.

India and Brazil also called on the international community to ensure that agricultural trade is not undermined by unilateral restrictions or protectionist measures introduced under the pretext of "environmental, security or climate concerns while respecting open, fair, transparent, inclusive, equitable, non-discriminatory and rules-based multilateral trading system, with WTO (World Trade Organization) at its core." End

US$1 = INR 85.85

Reported by Priyasmita Dutta

Edited by Tanima Banerjee

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.