Modi, Lula Set $30 Billion Trade Target in 5 Years

Addressing the media, Prime Minister Modi described the partnership as “win-win” and proposed doubling bilateral trade to over $30 billion in the next five years from the current $15 billion. He also called for the expansion of the India-Mercosur trade agreement to enhance market access. “The agreement reached on Critical Minerals and Rare Earths is a major step towards building resilient supply chains. 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,” he said.
He said both sides would work to increase the supply of affordable and quality medicines from India to Brazil and were “working on establishing a Centre of Excellence for Digital Public Infrastructure in Brazil”.
The ministry of external affairs (MEA) said the two leaders also discussed American trade policy, including the US Supreme Court verdict striking down tariffs imposed by the Trump Administration. It said India is in a “wait and watch” mode and that the Union Commerce Ministry is studying the implications.
President Lula described bilateral ties as a partnership between the “world’s pharmacy” and the “breadbasket of the world”, and termed India a digital superpower and Brazil a renewable energy superpower. He also condemned terror attacks in Kashmir, referring to the Pahalgam attack last year, and called India and Brazil the “biggest democracies of the Global South”.
On defence cooperation, MEA secretary (East) P. Kumaran said President Lula indicated that Brazilian aircraft manufacturer Embraer would establish an assembly line for regional jets in India. Modi suggested that Embraer also set up an MRO facility in India. An MoU was signed with Embraer, and both Navies concluded an MoU with Mazagon Dock Shipbuilders Limited for cooperation. The leaders also discussed cooperation on Scorpene submarines operated by both countries.
On critical minerals, Kumaran said Lula invited Indian participation in exploration and processing, citing substantial scope for cooperation.
Modi said energy cooperation was a “strong pillar” of ties, covering hydrocarbons, renewable energy, ethanol blending and sustainable aviation fuel. He noted Brazil’s participation in the Global Biofuel Alliance and welcomed its proposal to co-chair the Coalition for Disaster Resilient Infrastructure.
In agriculture, he said cooperation would expand in climate-resilient farming, precision agriculture and biofertilisers, and referred to a Centre of Excellence for Oilseeds, Pulses and Integrated Farming in Brazil. He also spoke of collaboration in health, pharmaceuticals, Ayurveda and traditional medicine.
On global issues, Modi 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.” Both leaders reiterated support for reform of the UN Security Council, with President Lula referring to the G-4 grouping’s efforts for expansion.
“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. When India and Brazil work together, the voice of the Global South becomes stronger and more confident,” Modi said.