08-07-2025
India, Brazil Seal $20B Trade Plan As Modi Gains Support On Terror, UPI, Global South – Ties Cemented With Brasilia's Top Honour
Brasilia (Brazil): The Brazilian sun had barely risen when Prime Minister Narendra Modi stood beside President Luiz Inácio Lula da Silva at Alvorada Palace, hand-in-hand, sharing a moment that symbolised more than diplomatic optics. Brazil rolled out red carpet and wrapped PM Modi in the colours of the Southern Cross.
On July 9, during a joint appearance, PM Modi was conferred with Brazil's highest civilian honour – the Grand Collar of the National Order of the Southern Cross. The moment was about what the two countries are choosing to build together.
'We have set a goal to raise bilateral trade to 20 billion dollars over the next five years,' PM Modi declared, linking Brazil's passion for football with India's love for cricket.
'Whether it is sending the ball past the boundary or into the goal, when both are on the same team, a $20 billion partnership is not difficult to achieve,' he said.
Behind these poetic words sat a policy. The visit apparently has opened a new chapter in India's diplomatic and economic outreach to Latin America.
The centrepiece of the visit was the comprehensive bilateral dialogue held at the Presidential Palace in Brasilia. The two leaders discussed a broad spectrum of issues from defence to digital public infrastructure, agriculture to artificial intelligence and climate change to traditional medicine.
Modi emphasised the growing India-Brazil defence bond, highlighting mutual trust and a shared interest in linking defence industries. Collaboration in artificial intelligence, supercomputers and critical minerals also formed key pillars of discussion.
A $20 Billion Vision
Energy transition and sustainability emerged as top priorities. Both countries pledged to align their clean energy goals, with Brazil's rich reserves of lithium and rare earths offering opportunities for India's green ambitions.
The two countries have agreed to elevate trade discussions to a ministerial level, keeping close watch over commerce, investment and market access. PM Modi requested Lula's support in expanding the India-MERCOSUR Preferential Trade Agreement. The Brazilian president agreed to the request. Brazil currently chairs the trade bloc.
Kumaran, the Secretary (East) at India's External Affairs Ministry, called it a significant commitment. 'The leaders noted ample opportunities lie ahead for diversifying and expanding bilateral trade,' he said.
Digital Push, UPI Footprint and Health Synergy
India's digital success story has caught Latin America's eye. PM Modi announced both countries are collaborating to bring India's UPI system to Brazil.
Three major MoUs were signed on July 9 – cooperation in counter-terrorism and organised crime, sharing of digital public infrastructure tools and a pact on renewable energy. More were set to follow, including on agriculture research, mutual protection of classified information and intellectual property.
Health was another pillar. India requested Brazil to fast-track approval for medicines already cleared by the US FDA or Europe's EDQM. The move could help slash healthcare costs for Brazilians.
Defence, Climate and Critical Minerals
Modi emphasised the growing India-Brazil defence bond, calling it a reflection of 'deep mutual trust'.
There is also a clean energy ambition shaping this relationship. With Brazil's vast reserves of critical minerals like lithium and rare earth elements and India's appetite for secure supply chains for its green push, the two sides found common ground. PM Modi assured President Lula of India's full backing for the COP30, which Brazil will host.
Artificial intelligence, space and supercomputing also featured in talks – no longer emerging themes but priorities.
Terrorism and the Global South
One message from PM Modi rang out loud: 'We share a common approach in the fight against terrorism – zero tolerance and zero double standards.'
President Lula's support in condemning the Pahalgam terror attack in April, where 26 Indian citizens died, did not go unnoticed.
In a subtle swipe at global power imbalances, both leaders spoke about the Global South. 'It is our moral obligation to raise the concerns and priorities of the Global South at global forums,' said PM Modi.
Ayurveda, Samba and Visa-Free Dreams
There was warmth too. Brazil's love for football and India's cricket fever, their carnival colours and shared love for dance, cuisine and spirituality – all found space in the leaders' words. Ayurveda and traditional medicine will now be introduced more deeply in Brazil.
Modi spoke of 'contact without long lines at visa counters', promising smoother travel for students, tourists and businesspeople.
Regional and Multilateral Vision
The two countries are not only talking trade, they are aligning multilateral strategies. At the lunch hosted by President Lula, both leaders discussed regional issues and cooperation in groups like BRICS, G20, IPSA and the United Nations.
This visit marks Modi's fourth to Brazil in 10 years but only the second standalone bilateral one in nearly six decades. From Rio to Brasilia and from strategic agreements to shared dances of diplomacy, India and Brazil are scripting something more than a deal. They are composing a new rhythm for the Global South.
And as Modi heads next to Namibia, carrying echoes of Samba and a pocketful of signed MoUs, the India-Brazil story feels more like a future unfolding than a ceremony concluded.
(With ANI inputs)
