PM Modi Sets $20 Billion Trade Target with Brazil by 2030

During a state visit to Brazil on July 9, 2025, Prime Minister Narendra Modi set a bold goal to increase India–Brazil bilateral trade to $20 billion by 2030, up from the current $12.2 billion. Speaking at a Joint Press Conference alongside Brazilian President Luiz Inácio Lula da Silva in Brasilia, PM Modi outlined a roadmap to deepen economic cooperation and strategic ties between the two major Global South economies.

Expanding Trade Through Mercosur

Widening the Mercosur Preferential Trade Agreement

PM Modi emphasized India’s intent to expand the Mercosur preferential trade agreement. Mercosur, a regional trade bloc comprising Brazil, Argentina, Paraguay, and Uruguay, currently has limited coverage with India. Modi stressed the need to include more products and enhance market access for Indian exporters.

The Prime Minister also highlighted sectors ripe for expansion such as:

• Agriculture and food processing

• Agri-tech and value-added food exports

• Digital public infrastructure

• Space technology and research collaboration

Boosting Digital Payments: UPI in Brazil

A major highlight of the visit was PM Modi’s announcement regarding the adoption of India’s Unified Payments Interface (UPI) in Brazil. Following its successful rollout in countries like Singapore and UAE, India’s digital payments framework could soon become a global export, with Brazil as its newest adopter.

This move aligns with Brazil’s own push towards financial inclusion and digital transformation, and could strengthen India’s soft power in fintech innovation.

Civilian Honour: Grand Collar of the National Order of the Southern Cross

In a symbolic gesture of goodwill, President Lula conferred upon Prime Minister Modi Brazil’s highest civilian honour, the Grand Collar of the National Order of the Southern Cross. This prestigious award recognizes Modi’s contributions to:

• Bilateral economic and diplomatic relations

• Global platform cooperation, including BRICS, G20, and Global South summits

• South–South collaboration in technology and climate change

Pharmaceutical Access and Visa Liberalisation

Following the bilateral talks, Secretary (East) P. Kumaran from the Ministry of External Affairs briefed media, noting several breakthroughs:

• Brazil welcomed cost-effective Indian pharmaceuticals, including proposals to establish pharma manufacturing hubs in Brazil.

• Visa liberalisation talks for Indian tourists and business professionals were positively received, aimed at boosting people-to-people and trade connectivity.

• Both countries acknowledged the importance of India’s generic drug industry for Brazil’s public health sector.

Cooperation in Critical Minerals and Rare Earths

India has expressed interest in Brazil’s rich mineral assets, particularly rare earth elements, which are critical for:

• Electronics and defense manufacturing

• EV battery production

• Space and satellite technology

Proposals were made to allow Indian investments or joint ventures to mine, process, or co-develop these resources. President Lula indicated that Brazil’s upcoming rare earth policy will offer incentives for Indian companies.

MoUs Signed and Future Agreements

Three MoUs signed during the visit:

1. Intelligence sharing on terrorism and transnational crime

2. Biofuel cooperation, including ethanol-blended fuel development

3. Partnership on renewable energy technologies

Upcoming MoUs to be signed shortly:

• Agricultural research collaborations

• Exchange of classified strategic information

• Cooperation on Intellectual Property (IP) systems

These agreements showcase a multi-sectoral strategic partnership between India and Brazil that goes beyond just trade, touching upon energy security, food sustainability, innovation, and counterterrorism.