Defense, Diesel, and Digital Dreams: India-Brazil Pact Packs a Punch

Image Source: The Economic Times

India and Brazil have initiated a comprehensive strategic blueprint to elevate bilateral relations to the next level with a target of doubling trade to $20 billion in five years. The blueprint was unveiled during Prime Minister Narendra Modi's state visit to Brasilia, where he met President Luiz Inácio Lula da Silva following the BRICS Summit.

Trade and Economic Development

India and Brazil are scheduled to deepen the India-MERCOSUR Preferential Trade Agreement.

Two-way trade was at $12.2 billion in FY25, as engineering products, pharmaceuticals, and diesel propelled Indian exports

Brazil ships to India iron ore, soya oil, gold, and crude oil.

Defense and Security Cooperation

Six MoUs signed, including counter-terrorism and sharing of secret information agreements

The two countries pledged zero-tolerance for terror and emphasized collaborative action with a perspective to eliminating terror financing

Cooperation in defense industries will comprise technology transfer and collaborative manufacturing

Energy and Digital Infrastructure

Clean energy and renewable resources emerged as priority fields of cooperation

India's digital payment system UPI to be incorporated into Brazil's financial system

Space technology, supercomputing, and AI were the focus as areas of future cooperation

Critical Minerals and Climate Targets

Brazil's deposits of rare earth meet India's clean energy requirements

Collaborative efforts will be focused on processing, recycling, and mining of critical minerals,

Sources: Hindustan Times, Outlook Business, UNI India, Economic Times, MSN News, HDFC Sky