A historic trade deal was signed between India and Brazil on Saturday. Also, both the countries have agreed to double mutual trade to approximately 30 billion dollars by 2030. Apart from these, agreements have also been signed for cooperation in essential minerals and steel supply chain. In their talks, the heads of state of both the countries, PM Narendra Modi and Brazilian President Lula da Silva, have agreed to strengthen multilateralism and pay attention to it.
Lula came to India with a delegation of 300 business representatives. During this, after attending the AI Summit, he met PM Modi to review and strengthen the mutual relations between the two countries. Actually, America had decided to impose 50% tariff on both the countries. This was the world’s highest tariff, which was imposed on any country.
What have the leaders of both the countries said in the joint press conference?
Apart from this, it was also promised to increase cooperation between the two countries in areas like defence, security, oil and gas, healthcare and digital public infrastructure. Also stressed the need for strategic partnership at the global level. PM Modi and President Silva also held a joint press conference. In this he said, Brazil is India’s largest trading partner in Latin America. We are committed to taking bilateral trade beyond $20 billion in the next five years. This is not a trade figure, but a reflection of confidence.
Increase in trade deals between the two countries in the last few years
The trade between the two countries has exceeded 15 billion dollars. This is 25% more than 2024. P Kumaran, Secretary (East) in the Ministry of External Affairs, said in the press conference that both the leaders agreed that trade should at least double to $30 billion by 2030.
Apart from this, both the countries have also discussed the US trade policy and the US Supreme Court’s decision to abolish President Donald Trump’s big tariffs. Apart from this, Lula has said that India’s capabilities have created new opportunities in IT, AI, biotechnology and space. Apart from this, PM Modi has described the agreement on rare earth minerals as a big step towards creating a strong supply chain. In fact, the Indian government is looking for a new supplier of rare earths minerals to reduce its dependence on China.
Both countries support multilateralism and peace: Narendra Modi
India-Mercosur Preferential Trade Agreement (PTA) was also discussed between the two countries. This will further deepen the economic cooperation between the two countries. PM Modi has said that we both are very different countries. We both support multilateralism and peace. Terrorism and its supporters in both countries are enemies of entire humanity. The Brazilian President has also termed the attack in Kashmir as wrong. Besides, both the countries have also expressed unanimity on ending the ongoing war between Ukraine and Russia.
