India and Brazil signed a historic trade deal on Saturday. The two countries agreed to double their trade to approximately $30 billion by 2030. Agreements were also signed to collaborate on the supply chain for essential minerals and steel. During their talks, Prime Minister Narendra Modi and Brazilian President Lula da Silva agreed to strengthen and focus on multilateralism.
Lula arrived in India with a delegation of 300 business representatives. After attending the AI Summit, he met with PM Modi to review and strengthen their relations. The US had imposed a 50% tariff on both countries, the highest tariff ever imposed on any country in the world.
What did the leaders of the two countries say at the joint press conference?
They also promised to expand cooperation across defence, oil and gas, healthcare, and digital public infrastructure. They also emphasised the need for strategic partnerships globally. PM Modi and President Silva held a joint press conference. In the conference, he stated, “Brazil is India’s largest trading partner in Latin America. We are committed to taking bilateral trade to $20 billion or more in the next five years. This is not a trade figure, but a reflection of trust.”
Trade deals between the two countries have increased over the past few years.
Trade between the two countries has exceeded $15 billion, a 25% increase from 2024. Secretary (East) in the Ministry of External Affairs, P. Kumaran, stated at the press conference that the two leaders agreed that trade should at least double to $30 billion by 2030.
The two countries also discussed US trade policy and the US Supreme Court’s decision to strike down President Donald Trump’s massive tariffs. Furthermore, Lula stated that India’s capabilities in IT, AI, biotechnology, and space have created new opportunities. PM Modi also described the agreement on rare earth minerals as a major step towards building a strong supply chain. The Indian government is currently seeking new suppliers of rare-earth minerals to reduce its dependence on China.
Both countries support multilateralism and peace, Narendra Modi said.
The India-Mercosur Preferential Trade Agreement (PTA) was also discussed. This will further deepen economic cooperation between the two countries. PM Modi stated that both countries are very different. Both support multilateralism and peace. Both countries believe that terrorism and its supporters are enemies of humanity. The Brazilian President also condemned the attack in Kashmir. The two countries also expressed consensus on ending the ongoing war between Ukraine and Russia.
