$30 Billion Trade Target, Critical Minerals Pact: Big Outcomes from Modi-Lula Meet Reshaping India-Brazil Partnership

Along with expanding its global ties and standing, critical minerals and rare earths seem to emerging a key priority area for the government as India has, over the past few weeks, entered into several such pacts with countries like France with Brazil being the latest to join the list.

India and Brazil have unveiled one of their most ambitious bilateral roadmaps in two decades, announcing sweeping agreements spanning digital transformation, critical minerals, defence, climate action, health, and trade, following extensive talks between Prime Minister Narendra Modi and Brazilian President Luiz Inácio Lula da Silva in New Delhi.

The high-level engagement marks a decisive shift toward structured, long-term cooperation between the two largest democracies of the Global South, building on the momentum of PM Modi’s State Visit to Brasília in July 2025 and reaffirming the Strategic Partnership first established in 2006.

India-Brazil relations: Major outcomes of PM Modi’s meeting with Lula da Silva

Trade and economic integration formed the backbone of the summit outcomes. Bilateral trade surged 25.5% in 2025, reaching $15.21 billion. Prime Minister Modi announced an ambitious push to take trade beyond $20 billion in the next five years, while both sides reaffirmed a longer-term target of $30 billion by 2030.

A major breakthrough came with the decision to expand and deepen the India–MERCOSUR Preferential Trade Agreement, which leaders acknowledged no longer reflects the full economic potential of the relationship. The expansion is expected to improve market access for agricultural, agro-industrial and industrial goods, while stimulating investment flows.

The signing of a Memorandum of Understanding on Mutual Recognition of Electronic Certificates of Origin is expected to streamline trade processes, reduce compliance burdens and enhance predictability for exporters.

President Lula, in a symbolic phrase, described the partnership as “a meeting of the world’s pharmacy with the world’s barn, and a digital superpower with a renewable energy superpower.”

India-Brazil critical minerals pact: How significant is the rare earth deal?

One of the most strategic outcomes was the signing of an MoU on rare earth elements and critical minerals, a move with far-reaching geopolitical implications. Prime Minister Modi noted that the agreement could potentially lower dependence on China, strengthening supply chain resilience for sectors such as electronics, clean energy, electric mobility and defence manufacturing.

Brazil, which holds significant rare earth reserves, with only about 30% explored so far, sees India as a long-term partner in exploration, processing and industrial development. The pact aligns with India’s broader push to secure strategic resources amid intensifying global competition over critical minerals.

How India-Brazil digital partnership could be a game-changer?

A defining highlight of the visit was the Joint Declaration on the Digital Partnership for the Future. Both leaders placed Digital Public Infrastructure (DPI) at the centre of cooperation, positioning India and Brazil as champions of inclusive digital transformation across the developing world.

Artificial intelligence emerged as a central pillar, particularly after President Lula attended the 2nd AI Impact Summit in New Delhi. The two sides committed to collaboration on AI governance, large language models, data protection and ethical frameworks, aligning efforts with BRICS and UN platforms.

The leaders stressed that AI must serve development goals and avoid deepening global inequalities, reinforcing their shared Global South positioning.

What progress was made in defence and security?

Defence and security cooperation were reaffirmed as core pillars of the strategic partnership. The leaders welcomed growing defence-industrial collaboration, linking India’s Atmanirbhar Bharat initiative with Brazil’s defence industrial base through co-design and co-production projects.

They strongly condemned terrorism in all its forms. Brazil unequivocally condemned the 2025 terrorist attacks in Pahalgam and New Delhi, signalling solidarity with India. Cybersecurity, maritime cooperation, space collaboration and peacekeeping operations were identified as priority areas for deeper engagement.

India-Brazil health and pharma ties

Healthcare emerged as another major focus area. The signing of an MoU between Brazil’s ANVISA and India’s CDSCO is expected to accelerate regulatory approvals and enable co-development and technology transfer in pharmaceuticals, including treatments for rare and oncological diseases.

India committed to expanding the supply of affordable, high-quality medicines to Brazil, while also promoting Ayurveda and traditional medicine. Both nations reiterated strong support for the World Health Organization and universal health coverage, emphasising sustainable financing and equitable access across the Global South.

Cooperation on climate and energy

Climate leadership featured prominently, especially as Brazil prepares to host COP30 in Belém. Prime Minister Modi welcomed Brazil’s Tropical Forests Forever Facility initiative, aimed at mobilising long-term financing for forest conservation.

Both countries committed to advancing renewable energy, sustainable fuels, green hydrogen and carbon capture technologies. Cooperation in steel, oil and gas was also discussed, alongside efforts to promote responsible industrial practices.

Brazil remains a key partner in biofuels and is a co-founder of the Global Biofuel Alliance with India.

How are India and Brazil coordinating globally?

On global governance, both leaders reiterated their call for comprehensive reform of the United Nations Security Council and reaffirmed mutual support for each other’s permanent membership in an expanded UNSC. Brazil backed India’s candidature for a non-permanent UNSC seat for 2028–29.

The two sides pledged close coordination within BRICS, IBSA, the G20, G-4, the International Solar Alliance and other multilateral forums, underscoring their shared commitment to revitalised multilateralism.

President Lula also remarked that while trading in local currencies is possible, any shift away from dollar-dominated systems would require careful and gradual planning.

India-Brazil to expand people-to-people and cultural links

To deepen societal ties, both countries extended multiple-entry tourist and business visas from five to ten years. Cooperation in education, cinema, sports, tourism, yoga and traditional medicine was expanded, alongside agreements on archival collaboration and intellectual property protection.

Despite a relatively small Indian diaspora of around 4,000 professionals in Brazil, people-to-people connections were described as a vital foundation of the partnership.

As President Lula concluded his fifth visit to India, both leaders projected confidence that the roadmap agreed upon will guide bilateral engagement over the next decade.