Brazilian President Luiz Inacio Lula da Silva announced plans to significantly boost trade with India, aiming to increase bilateral trade from $12 billion in 2024 to $36 billion in the near future. The statement came during a state visit by Indian Prime Minister Narendra Modi in Brasilia on July 8, 2025. The leaders discussed strategies to strengthen economic ties, focusing on reducing trade barriers and expanding cooperation in key sectors.
A key element of the plan involves enhancing the preferential trade agreement between India and the Mercosur bloc, which includes Brazil, Argentina, Paraguay, and Uruguay. This could lower tariffs and streamline non-tariff regulations, facilitating smoother commerce. Posts on X reflect optimism about the potential for increased trade, with users highlighting the complementary strengths of Brazil’s agricultural exports and India’s growing manufacturing and technology sectors.
Additionally, Lula emphasized opportunities for Brazilian aerospace company Embraer to expand its footprint in India through partnerships with local firms. This move aligns with broader efforts to diversify trade beyond traditional commodities like soybeans and beef, potentially including biofuels and defense technology. The leaders also set a specific target of $20 billion in bilateral trade within five years, as noted by Modi in a post on X, underscoring the commitment to economic and people-to-people ties, including sports and tourism.
The discussions occur against the backdrop of global trade tensions, with Brazil navigating challenges posed by U.S. tariff threats under President Donald Trump. Lula’s push for stronger ties with India reflects a strategic effort to bolster economic resilience through partnerships with other major emerging markets. This initiative builds on the shared membership of Brazil and India in the BRICS group, which continues to advocate for multilateral trade cooperation.
Published in SouthAsianDesk, July 9th, 2025
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