India and Brazil Strengthen Mining Ties as Modi Aims for $20 Billion Trade Target

Post by : Saif Nasser

India and Brazil have taken an important step to deepen their economic partnership by signing a new agreement to expand cooperation in mining and minerals. This move is part of India’s larger plan to increase trade with Brazil to $20 billion within the next five years. The agreement was signed during Brazilian President Luiz Inacio Lula da Silva’s three-day visit to New Delhi, where he met Prime Minister Narendra Modi and other senior leaders. Both sides described the visit as a sign of growing friendship and shared economic goals.

Brazil is one of the world’s top producers of iron ore, which is a key raw material used to make steel. India’s demand for steel is rising quickly because of new infrastructure projects such as roads, bridges, railways, factories, and housing developments. As the country continues to grow and industrialise, it needs a stable supply of steel to support its progress. India currently has the capacity to produce about 218 million metric tons of steel, and companies are expanding production to meet future needs. To keep this growth steady, India requires reliable access to minerals like iron ore and other important resources used in steelmaking.

The new mining pact is expected to improve India’s access to these raw materials and also encourage investment in exploration, mining operations, and steel sector infrastructure. This means both countries may work together to discover new mineral deposits and develop better systems to process and transport them. Stronger cooperation in this area can help ensure long-term growth for India’s steel industry while creating business opportunities for Brazilian companies.

At present, trade between India and Brazil stands at about $15 billion. Prime Minister Modi stated that both countries are committed to taking this figure beyond $20 billion within five years. Increasing trade will benefit both sides. India can secure essential resources for its industries, while Brazil can expand exports to one of the world’s fastest-growing large economies.

The leaders also discussed expanding cooperation into new areas such as technology, innovation, digital public infrastructure, artificial intelligence, and semiconductors. These sectors are becoming more important as countries compete in a fast-changing global economy. Strong partnerships in these fields can help both nations modernise their industries and improve economic resilience.

India and Brazil have been strategic partners since 2006. Over the years, they have worked together in trade, defence, agriculture, energy, health, and technology. Brazil is India’s largest trading partner in the Latin America and Caribbean region. The two nations also share common views on global issues such as climate change, reform of international institutions, and counter-terrorism efforts. Both countries are members of the BRICS group of emerging economies.

During his visit, President Lula suggested that India and Brazil could explore conducting trade in their own currencies instead of relying on the U.S. dollar. However, he dismissed speculation about creating a common BRICS currency. His remarks show that both countries are thinking about ways to strengthen financial cooperation while maintaining practical economic policies.

Across the world, nations are racing to secure minerals and raw materials that are essential for steel production, technology manufacturing, and clean energy development. By signing this mining agreement, India and Brazil are taking a strategic step to protect their economic interests. The partnership reflects not only shared economic goals but also mutual trust. If the trade target of $20 billion is achieved, it will mark a new stage in the relationship between the two countries and strengthen cooperation among developing economies in an increasingly competitive global environment.