India has taken a major step toward strengthening its trade partnership with Brazil by signing a new agreement focused on expanding cooperation in mining and minerals. The pact was finalized in New Delhi in the presence of Prime Minister Narendra Modi and Brazilian President Luiz Inacio Lula da Silva, who is on a three day official visit to India.
Brazil is one of the world’s leading producers of iron ore and possesses vast reserves of minerals that are essential for steel production. With India rapidly increasing its infrastructure projects and industrial development, the demand for steel continues to rise. By deepening ties with Brazil, India aims to secure better access to critical raw materials and advanced technologies required for long term growth in the steel sector.
The agreement places strong emphasis on attracting investment in exploration, mining operations, and steel infrastructure. India currently has a steelmaking capacity of 218 million metric tons, and domestic companies are actively expanding production to meet growing demand driven by construction and industrial expansion.
During discussions with the Brazilian delegation, Prime Minister Modi highlighted the shared commitment to increase bilateral trade to over 20 billion dollars within the next five years. At present, trade between the two countries stands at approximately 15 billion dollars. Both leaders also discussed collaboration in areas such as technology, digital public infrastructure, artificial intelligence, and semiconductors.
Brazil remains India’s largest trading partner in Latin America and the Caribbean region. Since becoming strategic partners in 2006, the two nations have worked closely across sectors including defense, energy, agriculture, health, and climate change. The new agreement signals a stronger economic alliance and reflects the shared ambition of both countries to play a larger role in the global supply chain for critical minerals and industrial growth.
