India, Brazil set USD 20-billion annual trade target, sign critical minerals pact

New Delhi (PTI): India and Brazil on Saturday set an annual bilateral trade target of USD 20 billion in the next five years and signed a pact for cooperation in the area of critical minerals following wide-ranging talks between Prime Minister Narendra Modi and Brazilian President Luiz Inacio Lula da Silva.

The two leaders also vowed to shore up ties in a range of other sectors, including defence, energy, healthcare and digital public infrastructure, while emphasising a deeper India-Brazil strategic engagement to navigate the fragmented geopolitical environment.

Modi said India and Brazil are unanimous that terrorism and its supporters are "enemies" of humanity even as he noted that both sides agreed that reform of global institutions is essential to address the challenges facing the world.

President Lula is in India on a five-day visit from February 18, primarily to attend the India AI Impact Summit and hold talks with Modi.

"Brazil is India's largest trading partner in Latin America. We are committed to taking the bilateral trade beyond USD 20 billion in the next five years. Our trade is not just a figure, it is a reflection of trust," Modi said in his media statement in the presence of the Brazilian leader.

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.

The prime minister said the agreement on critical minerals and rare earth is a major step towards building resilient supply chains.

Besides the pact on critical minerals, India and Brazil also firmed up 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.

"Our cooperation in the field of defence is also continuously growing. This is a great example of mutual trust and strategic coordination. We will continue to strengthen this win-win partnership," Modi said.

The prime minister noted that the voice of the Global South becomes stronger and more confident when India and Brazil work together.

"The India-Brazil partnership 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," he said.

"We believe that every problem must be resolved through dialogue and diplomacy. India and Brazil are unanimous that terrorism and its supporters are enemies of all humanity," Modi added.

In his remarks, Lula slammed terror attacks in Kashmir and said terrorism must not be linked to any religion or nationality.

The president said the "turbulent global environment" requires India and Brazil to deepen their strategic ties and that dialogue between the two powers is an engagement of "superlatives".

"We are not just the two biggest democracies of the Global South. This is a meeting of a digital superpower with a renewable-energy superpower. We are both mega-diverse countries and we both defend multilateralism and peace," he said.

The Brazilian leader argued that there is no possibility of fair and sustainable development in a conflict-ridden world and quoted Modi's remarks at last year's BRICS Summit that one cannot run "21st-century software on 20th-century typewriters".

"We emphasised our commitment to the UN reform, particularly of the UN Security Council, so that it represents the interests of the Global South. Brazil and India are natural candidates to become permanent members of the Security Council," he said.

In his statement, Modi said the India-Brazil ties have long benefitted from Lula's vision and that his visit has given new energy to the strategic partnership between the two countries.

The prime minister also made a mention of the India-Mercosur trade agreement and said it will further strengthen the economic ties between the two countries.

"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," he said.

"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 it must become a bridge for shared progress," Modi said.

He described the India-Brazil energy cooperation as a strong pillar of the bilateral relationship.

"Along with hydrocarbons, we are also accelerating cooperation in many areas, such as renewable energy, ethanol blending, sustainable aviation fuel. Brazil's active participation in the 'Global Biofuel Alliance' reflects our shared commitment to a green future," the prime minister said.

In the talks, Brazil also proposed to co-chair the India-backed Coalition for Disaster Resilient Infrastructure (CDRI).

"I congratulate President Lula for this initiative. Brazil's extensive experience in this field will significantly contribute to further strengthening the CDRI," Modi said.