Brasilia, July 8 — India and Brazil are deepening their bilateral trade and economic ties at a time when both countries face growing trade tensions with the United States. During Prime Minister Narendra Modi’s visit to Brazil, the two nations discussed new agreements aimed at expanding cooperation in key areas such as energy, critical minerals, defense, and agriculture.
India’s trade with Brazil is currently valued at approximately $12.2 billion, down from $16.6 billion in 2022–23 due to falling oil and gas prices. However, India still maintains a trade surplus with Brazil, exporting $6.7 billion worth of goods while importing $5.4 billion. The two leaders have set an ambitious target of reaching $25 billion in bilateral trade.
Brazil is particularly interested in expanding its exports to India beyond sugar and crude oil. Brazilian President Luiz Inácio Lula da Silva highlighted new opportunities in cheese, sesame, and ethanol, and also emphasized the entry of aircraft manufacturer Embraer SA into the Indian market. The recent BRICS Summit hosted in Brazil saw Lula criticizing US President Donald Trump for his threats of tariffs on BRICS member states. The group also reaffirmed its commitment to reducing dependency on the US dollar by enhancing cross-border payment interoperability.
India and Brazil are expected to sign agreements on renewable energy cooperation, agricultural research, and counter-terrorism. They are also working to expand the India–MERCOSUR Preferential Trade Agreement, with Brazil currently holding the MERCOSUR presidency.