From AI to Biofuels: How India-Brazil Ties Are Expanding Across Sectors

India and Brazil have set the stage for a transformative new chapter in bilateral relations, with Prime Minister Narendra Modi and Brazilian President Luiz Inacio Lula da Silva outlining an expansive vision that spans trade, technology, defence, climate action and global governance reform.

Addressing a joint press conference in New Delhi during President Lula’s state visit, both leaders emphasised that the partnership between the two major democracies of the Global South carries weight far beyond bilateral ties. With fresh agreements signed and a large Brazilian business delegation in attendance, the message was clear: India-Brazil relations are poised for scale, speed and strategic depth.

Can India and Brazil Amplify the Voice of the Global South?

Prime Minister Narendra Modi underlined the geopolitical significance of the partnership, framing it as central to reshaping global discourse.

"India and Brazil's partnership on the global stage has been strong and influential. As democratic nations, we will continue to advance the priorities and aspirations of the Global South. When India and Brazil work together, the voice of the Global South becomes stronger and more confident."

He added, "We believe that all problems must be resolved through dialogue and diplomacy. India and Brazil are unanimous that terrorism and its supporters are enemies of all humanity. We also agree that reform of global institutions is essential to address the challenges of our time. We will continue to work together in this direction"

President Lula echoed the sentiment, placing the relationship in a broader global context.

"My dear friend Modi, it is a reason of happiness for me to return to this country for the sixth time. The meeting between India and Brazil is a meeting of superlatives. We are not just the two biggest democracies of the Global South. This is a meeting of a digital superpower with a renewable energy superpower. We are both mega diverse countries and hubs of the cultural industry and we both defend multilateralism and peace," he said.

Highlighting shifting geopolitical realities, Lula added, "A turbulent global scenario requires our countries to strengthen and deepen our strategic dialogue...India and Brazil are crucial voices at the UN, the WTO and G20 are partners in building a multilateral governance which is more just, peaceful, and governed by international law"

Is a $20 Billion Trade Target Just the Beginning?

Trade and economic cooperation formed the backbone of the discussions. Prime Minister Modi described Brazil as India’s largest trading partner in Latin America and set a clear target.

"Brazil is India's largest trading partner in Latin America. We are committed to taking bilateral trade beyond $20 billion in the next five years. Our trade is not just a figure; it's a reflection of trust. The large business delegation accompanying the President reflects this confidence. The expansion of the India-Mercosur trade agreement will further strengthen our economic cooperation. Our cooperation in technology and innovation is important for both countries as well as the entire Global South," he said.

Currently hovering around $15 billion, bilateral trade is widely seen as underperforming relative to potential. Himani Pande, Additional Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT), described the existing 2030 target as too modest and called for more ambitious goals. Speaking at the Brazil-India Business Forum, she emphasised five strategic pillars identified through leadership-level discussions: defence and security, food and nutritional security, energy transition and climate action, digital transformation and emerging technologies, and industrial partnerships.

Pande noted that recent high-level visits — including Modi’s July 2025 trip to Brasilia and Lula’s current visit — have injected fresh political momentum, preparing the partnership for a more “expanded and transformative path.”

Will Technology, Energy and Critical Minerals Drive the Next Phase?

Technology cooperation emerged as a defining theme of the visit. Three MoUs were exchanged, including a Joint Declaration on Digital Partnership for the Future, cooperation in Rare Earth and Critical Minerals, and collaboration in Mining within the Steel Supply Chain.

PM Modi announced, "I am pleased that we are working on establishing a Centre of Excellence for Digital Public Infrastructure in Brazil. We are also prioritising our cooperation in areas such as artificial intelligence, supercomputers, semiconductors, and blockchain. Both countries believe that technology must be inclusive and must become a bridge for shared progress."

He further highlighted energy collaboration. "Energy cooperation has been a strong pillar of our relationship. In addition to hydrocarbons, we are also accelerating cooperation in several areas, including renewable energy, ethanol blending, and sustainable aviation fuel. Brazil's active participation in the Global Biofuel Alliance reflects our shared commitment to a green future. Brazil has also proposed co-chairing the Coalition for Disaster Resilient Infrastructure. I congratulate President Lula for this initiative. Brazil's extensive experience in this area will significantly contribute to further strengthening the CDRI."

On supply chains, PM Modi stated, "The agreement reached on critical minerals and rare earths is a major step in building a resilient supply chain. Our cooperation in the defence sector is also steadily growing. This is a great example of mutual trust and strategic alignment. We will continue to strengthen this win-win partnership."

He also underscored healthcare cooperation: "There is also immense potential for cooperation in the health and pharmaceutical sectors. We will work to increase the supply of affordable and quality medicines from India to Brazil."

President Lula reflected on the trajectory of ties, noting, "This shows the synchrony and mutual trust that binds us together. A few months ago, in July last year, I had the honour of hosting my friend Modi in Brasilia. His visit was a milestone. On that occasion, we restructured the bilateral cooperation agenda in five areas...We signed several agreements that provide concrete quality to our cooperation in these areas."

From artificial intelligence and digital public infrastructure to rare earths, defence, biofuels and climate resilience, the India-Brazil partnership is positioning itself as a pillar of Global South leadership, one that seeks not only economic growth, but structural reform of the international order.

(With inputs from ANI)