Trade to critical minerals: India, Brazil for a stronger Global South

“The partnership between India and Brazil on the global stage has been strong and influential. As democratic countries, we will continue to advance the priorities and aspirations of the Global South. When India and Brazil work together, the voice of the Global South becomes stronger and more confident,” Modi said.

Lula, in his remarks, said, “If we work together, we are going to strengthen Brazil-India bilateral relations. We are going to strengthen our relations… and we are going to strengthen the Global South so that we never, ever again are faced with a Cold War between two big superpowers.”

The two countries firmed up an agreement on critical minerals and rare earth, a joint declaration on digital partnership and signed memoranda of understanding (MoUs) for cooperation in the areas of mining, micro, small and medium enterprises (MSMEs), healthcare and traditional knowledge system.

“President Lula’s visit has enhanced the historic AI Impact Summit and given new energy to our strategic partnership,” Modi said.

Pointing out that this was his sixth visit to India, Lula said, “The meeting between India and Brazil is a meeting of superlatives. We are not just the two biggest democracies of the Global South. This is a meeting of the world’s pharmacy with the world’s barn, and a digital superpower with a renewable energy superpower. We are both mega-diverse countries and hubs of cultural industry, and we both defend multilateralism and peace. The invitation by Prime Minister Modi for this State visit and also to attend the AI Impact Summit shows the mutual trust that binds us together.”

Modi said, “Our cooperation in technology and innovation is important for both countries, as well as for the entire Global South. I am pleased that we are working on establishing a Centre of Excellence for Digital Public Infrastructure in Brazil. We are also prioritising our cooperation in areas such as artificial intelligence, supercomputers, semiconductors, and blockchain. We both believe that technology must be inclusive and become a bridge for shared progress.”

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Lula said, “Indian evolution in cutting edge sectors such as information technology, artificial intelligence, biotechnology and space exploration… creates a lot of cooperation opportunities with Brazil.”

On the pact on critical minerals, Modi said, “The agreement reached on critical minerals and rare earths is a major step towards building resilient supply chains. Our cooperation in the defence sector is also steadily growing. This is a great example of mutual trust and strategic synergy. We will continue to strengthen this win-win partnership.”

On defence cooperation, Lula said, “In the area of defence, our aeronautic industry has been strengthening its presence in India, as can be seen by the opening of the Embraer office in Delhi. The trilateral agreement between Mazagon Dock and the Indian and Brazilian navies is going to be part of maintenance activities for submarines of the Scorpene class and other military vessels.”

Underlining that Brazil is India’s largest trade partner in Latin America, Modi said, “We are committed to taking bilateral trade beyond $20 billion in the next five years. Our trade is not just a figure, it’s a reflection of trust. The large business delegation accompanying the President reflects this confidence. The expansion of the India-Mercosur trade agreement will further strengthen our economic cooperation.”

Lula said, “Prime Minister Modi and I agreed last year to increase our trade flow to $20 billion by 2030 in 2025, bilateral flow surpassed $15 billion for the first time in history, a growth of 25% in relation to 2024. We are moving forward so fast that we should revisit our goal of reaching USD 30 billion by 2025.”

In 2024-25, the India-Brazil trade volume reached USD 12 billion, with Indian exports amounting to USD 6.77 billion and imports from Brazil totalling USD 5.43 billion.

On energy ties, Modi said, “Energy cooperation has been a strong pillar of our relationship. In addition to hydrocarbons, we are also accelerating cooperation in several areas including renewable energy, ethanol blending, and sustainable aviation fuel. Brazil’s active participation in the ‘Global Biofuel Alliance’ reflects our shared commitment to a green future.”

Brazil has also proposed co-chairing the Coalition for Disaster Resilient Infrastructure, and Modi said he congratulated Lula for this initiative and that “Brazil’s extensive experience in this field will significantly contribute to further strengthening the CDRI”.

“We are giving new dimensions to our partnership in agriculture and animal husbandry, tailored to future needs. Our cooperation in areas such as climate-resilient agriculture, precision farming, and bio-fertilizers will strengthen the food security of both countries. The Centre of Excellence for Oil Seeds, Pulses, and Integrated Farming in Brazil is an important initiative in this direction,” Modi said.