India and Brazil have signed a mining agreement as Modi aims for a $20 billion trade target within five years
India took steps to strengthen its trade relationship with Brazil on Saturday by signing an agreement aimed at enhancing collaboration in the mining and minerals sector. This initiative is part of India’s efforts to address increasing domestic steel demand and facilitate capacity growth in the context of a global competition for raw materials.
The agreement was signed with India’s Prime Minister Narendra Modi and Brazilian President Luiz Inacio Lula da Silva present, as the latter arrived in New Delhi earlier this week for a three-day visit.
Brazil ranks as one of the leading producers of iron ore globally and possesses significant reserves of minerals essential for steel production. The Indian government stated that enhanced collaboration is anticipated to bolster India’s access to essential raw materials and technologies required for the sustained growth of its steel sector.
Investment in infrastructure
The collaboration will concentrate on drawing investment into exploration, mining, and infrastructure within the steel sector, according to the statement.
India possesses a steelmaking capacity of 218 million metric tons, with companies increasing production to satisfy the growing domestic demand fueled by infrastructure development and industrialization.
During a meeting with a Brazilian delegation led by Lula, Modi highlighted that their discussions centered on enhancing the trade partnership between India and Brazil.
“We are dedicated to expanding bilateral trade significantly beyond $20 billion in the next five years,” Modi stated.
The current bilateral trade between the two countries is approximately $15 billion.
“Our nations will also collaborate closely in fields including technology, innovation, digital public infrastructure, AI, semiconductors, and beyond,” Modi stated.
Largest trading partner in Latin America
Since 2006, India and Brazil have established a strategic partnership that encompasses a wide range of areas, including trade, defense, energy, agriculture, health, critical minerals, technology, and digital infrastructure.
Brazil stands as India’s foremost trading partner within the Latin America and Caribbean region, with both nations collaborating closely on significant global matters, including U.N. reform, climate change, and counter-terrorism.
On Thursday, Lula expressed support for Brazil and India to engage in trade using their own currencies instead of relying on U.S. dollars for transactions. However, he rejected the idea that the BRICS group, which includes both countries, would establish a common currency.
