India, Brazil ink minerals, rare earth pact; aim for $20 billion trade over 5 years

New Delhi: India and Brazil on Saturday signed an agreement to establish closer cooperation on critical minerals and rare earths, following wide-ranging talks between Prime Minister Narendra Modi and President Luiz Inácio Lula da Silva, and the two sides agreed to deepen their strategic partnership in energy, trade and defense.

They also pledged to jointly deliver a stronger voice of the global south for United Nations reforms, while reaffirming the goal of bilateral trade to exceed $20 billion within five years. The target, first announced during Prime Minister Modi’s visit to Brazil in 2025, represents an increase of nearly a third of bilateral trade from last year’s nearly $15 billion. Modi and Lula instructed relevant parties to work to eliminate non-tariff barriers in bilateral trade.

Nine Memorandums of Understanding were Signed

This will help reduce barriers and further develop trade between the two countries, which are key members of the BRICS group (Brazil, Russia, India, China and South Africa). Reaffirming that defense is an integral pillar of the India-Brazil Strategic Partnership, the leaders underlined the potential for co-design and co-production by connecting India’s Aatmanirbhar Bharat to Brazil’s defense industrial base. Following the meeting, a total of nine memoranda of understanding (MoUs) were signed for digital infrastructure and micro, small and medium-sized enterprises.

‘Win-Win Partnership’

Speaking at the joint press conference held after the delegation-level talks in Delhi, Modi and Lula underlined that the India-Brazil partnership extends beyond trade to global governance, peace and multilateral reform. According to Prime Minister Modi, “The agreement reached on critical minerals and rare earth elements is an important step in creating a resilient supply chain.” “Our cooperation in the defense sector is also increasing. This is a great example of mutual trust and strategic alignment. We will continue to strengthen the win-win partnership.”
India and Brazil also signed a Memorandum of Understanding to enhance cooperation in mining and minerals related to the steel sector. Brazil is an important iron ore producer with reserves of manganese, nickel and niobium. Modi said both countries are committed to expanding trade ties. “Brazil is India’s largest trading partner in Latin America. We are determined to increase bilateral trade to over $20 billion in the next five years. Our trade is not just a number but a reflection of trust.” Expressing similar views, President Lula said, “Prime Minister Modi and I talked at length about how we can move forward with determination on the path to peace.

“Just and sustainable development is not possible in a world full of conflict… We emphasize our commitment to reform the UN, especially the Security Council, so that it can represent the interests of the global south, for which Brazil and India are natural candidates.” The two leaders underlined the urgent need to strengthen multilateralism and revitalize dialogue and other mechanisms for the peaceful resolution of disputes.