Indian Prime Minister Narendra Modi and Brazilian President Luiz Inacio Lula da Silva met in New Delhi on Saturday to strengthen cooperation on critical minerals and rare earth elements, which are vital for industries ranging from electric vehicles and solar energy to smartphones and defense technologies.
Strategic Importance of Critical Minerals
Brazil holds the world’s second-largest reserves of critical minerals, making it a key supplier in the global market. India, aiming to reduce its dependence on China for rare earths, has been boosting domestic production, recycling initiatives, and international sourcing.
President Lula, accompanied by a delegation of ministers and business leaders, arrived in New Delhi earlier this week for a global summit. During talks with Prime Minister Modi, the two leaders are expected to sign a memorandum of understanding (MoU) on critical minerals and explore ways to expand bilateral trade.
Strengthening Trade and Economic Ties
India is already the 10th largest market for Brazilian exports, with bilateral trade reaching $15 billion in 2025. Both countries have set a target of $20 billion in trade by 2030. Key Brazilian exports to India include sugar, crude oil, vegetable oils, cotton, and iron ore, with demand for iron ore driven by India’s rapid infrastructure and industrial growth.
Experts note that cooperation with Brazil complements India’s recent supply chain partnerships with the United States, France, and the European Union, providing access to advanced technologies, financing, and high-end processing capabilities. According to Rishabh Jain of the Council on Energy, Environment and Water, “Global South alliances are critical for securing diversified resource access and shaping emerging rules of international trade.”
Discussing Global Economic Challenges
Modi and Lula are also expected to discuss global economic pressures and challenges to multilateral trade, especially after both nations were impacted by US tariffs in 2025. Washington has recently pledged to roll back duties on Indian goods under a newly signed trade deal.
Brazil remains India’s largest partner in Latin America, and Brazilian companies such as Embraer are expanding operations in India. The Embraer-Adani aircraft venture announced last month highlights increasing collaboration in high-tech sectors.
Focus on Innovation and AI
President Lula also addressed the AI Impact Summit in Delhi on Thursday, emphasizing the need for inclusive and multilateral governance frameworks for artificial intelligence. Following his India visit, he will travel to South Korea to meet President Lee Jae Myung and participate in a business forum.
India and Brazil’s growing partnership on critical minerals and trade reflects a strategic effort to diversify supply chains, enhance technology access, and strengthen bilateral economic ties.
