India and Brazil Raise Trade Target To $30 Billion By 2030

India and Brazil have agreed to double bilateral trade to $30 billion by 2030, marking a reset in their economic ambitions. The decision was taken during talks between Prime Minister Narendra Modi and Brazilian President Luiz Inácio Lula da Silva, who is on a five-day visit to India.

The revised goal significantly expands earlier targets and reflects both sides’ intention to deepen economic engagement amid global trade disruptions.

Two-way trade crossed $15 billion for the first time in 2025, recording a 25% increase over the previous year.

Brazil remains India’s largest trading partner in Latin America. Modi said the trade relationship reflects “trust” and emphasised that both countries are committed to strengthening it further.

Why Has The Trade Target Been Increased Now?

The new target comes at a time when global trade is facing uncertainty. Recently, the United States placed one of the highest tariffs in the world on both Brazil and India: 50%.

Following their discussion of the significance of these events, the leaders decided to keep an eye on any future adjustments to US trade policy.

Both sides agreed that communication and diplomacy are the vital elements of conflict resolution and that they equally stand against terrorism.

Lula, who attended the AI Impact Summit during his visit, said India’s capabilities in technology, biotechnology and space offer new avenues for collaboration. He described the partnership as one between a “digital superpower” and a “renewable energy superpower”.

The leaders also reaffirmed support for reforming global governance institutions, including the United Nations Security Council, to better represent the Global South.

Which Strategic Sectors Will Drive Future Growth?

Alongside the trade target, India and Brazil signed agreements covering rare earths, critical minerals and cooperation in mining for the steel supply chain. Modi called the rare earth pact a major step towards building resilient supply chains.

India has been looking for other sources of critical minerals in order to lower its dependency on China and promote industrial growth.

Brazil is the world's second-largest producer and exporter of iron ore, and it has enormous deposits that are essential for the manufacturing of steel. Officials indicated that cooperation could involve joint investment in exploration and infrastructure.

The two sides also firmed up a joint action plan on a Digital Partnership for the Future. Agreements were concluded in MSME entrepreneurship, coastal cooperation and healthcare regulation between Brazil’s health regulator and India’s Central Drugs Standard Control Organisation (CDSCO).

In defence, discussions included collaboration on maintenance of French-origin Scorpene submarines under a tripartite arrangement involving Mazagon Dock Shipbuilders Limited and the Indian and Brazilian navies.

Brazilian aerospace major Embraer’s plan to establish an assembly line for its E175 regional jet in India was reviewed. Modi encouraged the company to consider setting up a maintenance, repair and overhaul facility as well.

Energy cooperation featured prominently. Both countries highlighted renewable energy, ethanol blending and sustainable aviation fuel as priority areas. Brazil also proposed co-chairing the India-backed Coalition for Disaster Resilient Infrastructure.

Healthcare and pharmaceuticals formed another pillar of the dialogue. India will work to expand the supply of affordable medicines to Brazil. Lula noted that both countries have historically defended equal access to generic medicines and health sovereignty at the World Health Organization.

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Can $30 Billion In Trade By 2030 Be Achieved?

The revised goal calls for a sharp jump from current levels. In 2024–25, bilateral trade between India and Brazil stood at $12 billion, with Indian exports at $6.77 billion and imports at $5.43 billion.

To reach $30 billion by 2030, trade will need to expand steadily across sectors such as energy, mining, defence manufacturing, pharmaceuticals and digital services. The two sides also discussed widening the India-Mercosur preferential trade agreement to support higher volumes.

For investors, sectors linked to minerals, steel, defence equipment, renewable energy and medicines could see increased business activity if momentum builds.

Sources:

Hindustan Times

TOI

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