Modi and Brazil’s Leader Sign Mining Deal, Eye $20B Trade Goal

Indian Prime Minister Narendra Modi and Brazilian President Luiz Inacio Lula da Silva have formalized a mining cooperation agreement during a diplomatic meeting in New Delhi. The partnership aims to boost bilateral trade beyond $20 billion within five years, up from the current $15 billion.

Indian Prime Minister Narendra Modi and Brazilian President Luiz Inacio Lula da Silva have strengthened economic ties between their nations by formalizing a mining cooperation agreement during Saturday’s diplomatic meetings in New Delhi.

The mining partnership was established as India works to secure additional raw materials for its growing steel industry while Brazil leverages its position as a leading global iron ore producer. Lula concluded a three-day diplomatic visit to India’s capital this week.

According to Indian government officials, the collaboration will enhance India’s ability to obtain essential steelmaking materials and advanced technologies necessary for sustained industrial growth. Brazil possesses extensive iron ore deposits and substantial reserves of other minerals crucial for steel production.

The partnership will concentrate on drawing investment into mineral exploration, mining operations, and steel industry infrastructure development, government representatives stated.

India currently maintains steel production capabilities of 218 million metric tons, with companies working to increase output to satisfy growing domestic needs fueled by infrastructure projects and industrial expansion.

During discussions with the Brazilian delegation headed by Lula, Modi outlined their focus on strengthening economic cooperation between the two nations.

“We are committed to taking bilateral trade much beyond $20 billion in the next five years,” Modi stated.

Current trade volume between the countries reaches approximately $15 billion annually.

“Our nations will also work closely in areas such as technology, innovation, digital public infrastructure, AI, semiconductors and more,” Modi added.

The two countries have maintained strategic partnership status since 2006, collaborating across multiple sectors including trade, defense, energy, agriculture, healthcare, critical minerals, technology, and digital infrastructure.

Brazil serves as India’s primary trading partner throughout the Latin America and Caribbean region, with both nations coordinating efforts on international matters including United Nations reform, climate change initiatives, and counter-terrorism measures.

During Thursday’s discussions, Lula proposed that Brazil and India should conduct trade using their respective national currencies instead of relying on U.S. dollar transactions. However, he rejected suggestions that BRICS member nations, which include both countries, would establish a shared currency system.