India and Brazil announced a landmark agreement on Saturday to bolster cooperation in critical minerals and rare earths. This deal, touted by Prime Minister Narendra Modi as a crucial step towards establishing more resilient global supply chains, follows India’s strategy of increasing domestic production and recycling while looking for alternative sources amidst China’s near-monopoly over these materials.
India, seeking to reduce its dependence on top exporter China, has been expanding its own critical minerals industry. The two countries also agreed to cooperate in renewable energies and other fields as part of the deal finalised during Modi’s summit with Brazilian President Luiz Inácio Lula da Silva in New Delhi.
Lula’s visit coincided with an AI summit, where he expressed his commitment to building a multilateral and inclusive framework for global governance. Nine additional agreements were also concluded on Saturday covering sectors like digital cooperation, health, entrepreneurship, and others.
“Trade is not just figures; it’s a testament to trust,” Modi emphasized. “India looks forward to strengthening bilateral trade beyond $20 billion over the next five years.”
Lula’s visit included a ceremonial welcome from India’s side and tributes to Mahatma Gandhi. Accompanied by a delegation of ministers and business leaders, Lula participated in his first meeting with Modi.
While China dominates production for rare earths, some countries are seeking alternative sources. Speaking to AFP, Rishabh Jain, an expert at the Council on Energy, Environment and Water think tank, noted that India’s growing cooperation with Brazil complements recent engagements with other global players like the US, France, and the EU.
Jain emphasized the importance of such alliances for securing diversified resources and influencing future trade rules. In 2025, bilateral trade reached $15 billion, positioning Brazil as India’s largest trade partner in Latin America.
Key Brazilian exports to India include sugar, crude oil, vegetable oils, cotton, and iron ore. Indian demand for iron ore has surged with rapid infrastructure expansion and industrial growth on the horizon.
Indian Foreign Minister Subrahmanyam Jaishankar expressed confidence that Lula’s talks with Modi would “impart a new momentum” in their bilateral ties, highlighting that cooperation in the defense sector exemplifies this progress.
Lula addressed an AI summit in Delhi on Thursday. He is set to visit South Korea for meetings and attend a business forum before flying to Vietnam next week.
The cooperation extends beyond trade; Lula and Modi emphasized they are working together to strengthen the voice of emerging nations globally. Brazilian firms like Embraer and Adani Group are already establishing themselves in India, with plans to build aircraft plants there.
India’s growing economic strength makes it a significant market for Brazil, complemented by other partnerships that grant access to advanced technologies and resources. The strategic alliance between these two nations is expected to bolster their influence on the global stage.