INDIA AND BRAZIL Strengthening Ties: Flourishing Partnership Ahead of the G20 Summit

Introduction

The relationship between India and Brazil has witnessed significant growth in recent years, evolving into a robust partnership that spans multiple sectors, including trade, energy, defense, space cooperation, and more. As two of the largest democracies in the Global South, both countries share a commitment to strengthening their ties and advancing mutual interests on the global stage. Prime Minister Narendra Modi’s upcoming visit to Brazil for the G20 summit serves as a testament to this growing relationship, highlighting the deepening collaboration between the two nations. The visit comes at a pivotal time when India and Brazil are increasingly aligning their goals in areas such as sustainable development, renewable energy, and international trade. This partnership also plays a vital role in the broader context of Global South diplomacy, showcasing how emerging economies can work together to address common challenges and promote a more inclusive, multipolar global order.

Bilateral Trade and Economic Cooperation

Trade Growth

The trade between India and Brazil has witnessed remarkable growth in recent years, with the bilateral trade volume reaching an impressive USD 9.7 billion from January to October 2024. This figure reflects a continued upward trajectory in the economic ties between the two nations, underscoring the significance of their partnership in the global marketplace. A diverse array of sectors contributes to this robust trade relationship, including energy, agriculture, and manufacturing.

Key sectors driving this bilateral trade include energy resources, minerals, agricultural products, and pharmaceuticals. Brazil’s crude oil exports to India play a crucial role in India and Brazil Partnership, ensuring a steady supply of energy resources to meet India’s growing demand. Furthermore, India’s imports of agricultural products from Brazil, such as soybeans, coffee, and meat, complement Brazil’s growing position as a global food exporter. Similarly, India’s exports to Brazil span a wide range of products, including chemicals, machinery, and pharmaceuticals.

The steady growth in trade has been supported by efforts to enhance trade relations and reduce barriers. Both nations have actively worked on strengthening their economic ties through agreements such as the India-MERCOSUR Preferential Trade Agreement (PTA), which seeks to expand market access and create new opportunities for businesses in both countries. This growing trade partnership is expected to continue expanding in the coming years, reflecting the strategic importance of India-Brazil relations.

Energy Cooperation

Brazil plays a vital role in ensuring India’s energy security, particularly through crude oil exports. As India seeks to diversify its sources of energy, Brazil’s vast oil reserves have become an increasingly important part of India’s energy mix. In 2024, Brazil’s crude oil exports to India were valued at nearly USD 1 billion, highlighting the crucial role of Brazilian energy resources in sustaining India’s growing economy. Brazil’s oil production is particularly significant for India, as it helps meet the energy needs of a nation that is among the largest oil consumers globally. It enhances the India and Brazil relationship.

India’s energy investments in Brazil are also substantial, especially in the oil and gas sector. Indian Public Sector Undertakings (PSUs) such as ONGC Videsh Ltd. (OVL) have been actively involved in exploring and producing oil in Brazil’s offshore oil fields. OVL has invested over USD 5 billion in Brazil’s energy sector, making Brazil the largest recipient of India’s upstream investments in South America. These investments not only bolster the energy security of both nations but also foster deeper economic integration between the two countries.

In addition to conventional energy, India and Brazil are focusing on renewable energy cooperation. Brazil’s leadership in biofuels, particularly ethanol, aligns with India’s renewable energy goals. Both countries signed a Memorandum of Understanding (MoU) on Bioenergy Cooperation in 2020, aiming to boost collaboration in the bioenergy sector. Brazil’s extensive experience in ethanol production complements India’s ambitious target of achieving 20% ethanol blending in fuel by 2025, further cementing their partnership in the global transition to sustainable energy.

Renewable Energy and Bioenergy Cooperation

The renewable energy cooperation between India and Brazil extends beyond traditional energy resources, with a strong emphasis on bioenergy, particularly ethanol. Brazil has long been a global leader in ethanol production, leveraging its vast agricultural resources to produce biofuels at an industrial scale. India, with its focus on transitioning to a more sustainable energy future, has identified Brazil’s experience as key to achieving its renewable energy goals. The two nations have already made significant strides in this area, particularly in the field of biofuels.

In 2020, India and Brazil signed a Memorandum of Understanding (MoU) on Bioenergy Cooperation to deepen their collaboration in renewable energy. The MoU aims to enhance the exchange of knowledge and technology in the bioenergy sector, focusing on ethanol and other biofuels. India’s goal of achieving 20% ethanol blending in fuel by 2025 has prompted the country to look to Brazil’s successful ethanol production practices for guidance. Brazil’s expertise in agricultural waste and biomass conversion to biofuels is particularly valuable, given India’s vast agricultural sector.

Furthermore, the partnership between India and Brazil in renewable energy is not limited to ethanol alone. Both countries have also explored opportunities in wind, solar, and hydroelectric energy. Brazil’s diverse renewable energy portfolio offers valuable insights for India, which is rapidly expanding its renewable energy capacity. This collaboration in renewable energy reflects the shared commitment of both nations to achieve sustainable development goals, promote clean energy, and reduce their carbon footprints, thereby contributing to global efforts to combat climate change.

Lithium, Agriculture, and Food Security

Lithium Cooperation

Brazil’s vast lithium reserves are becoming increasingly important in the global market, as demand for lithium continues to surge due to its critical role in the production of batteries for electric vehicles (EVs) and renewable energy storage. Located primarily in the Jequitinhonha Valley, Brazil is home to one of the world’s largest untapped lithium reserves. This presents a significant opportunity for both Brazil and India to enhance their cooperation in the mining and production of lithium, a crucial component in the global transition to clean energy.

As India works to meet its ambitious renewable energy and electric vehicle targets, access to secure and sustainable lithium supplies is paramount. Lithium has become a strategic resource in both countries, with Brazil positioned as a potential key supplier. In response to this, India and Brazil have taken steps to deepen their collaboration in this sector, particularly through the signing of a 2020 MoU on Geology and Mineral Resources. This agreement facilitates cooperation in the exploration, extraction, and processing of lithium, positioning both nations to benefit from this booming market. India and Brazil working together to leverage the global lithium market.

India has been actively exploring investment opportunities in Brazil’s lithium sector, given the resource’s strategic value for its domestic EV and renewable energy ambitions. With both nations recognizing the potential of lithium as a driver of economic growth and technological innovation, the exploration of further partnerships in this sector will not only enhance trade relations but also contribute to the global effort to transition to clean energy sources.

Agriculture and Food Security

Agriculture plays a vital role in the economic relations between India and Brazil, with both nations boasting diverse agricultural sectors that complement each other. The two countries have long recognized the importance of agricultural cooperation, fostering closer ties through various agreements such as the 2008 MoU on Cooperation in Agriculture and Allied Sectors. Additionally, Brazil’s EMBRAPA and India’s Indian Council of Agricultural Research (ICAR) have further solidified their agricultural collaboration with a 2016 agreement focused on genetic resources, livestock development, and fisheries.

Brazil’s agricultural expertise, particularly in crops such as soybeans, sugarcane, and coffee, aligns well with India’s growing demand for high-quality agricultural products. The recent expansion of agricultural trade between India and Brazil underscores the importance of this partnership. In 2024, India exported USD 36 million worth of cotton to Brazil, while Brazil exported USD 98 million worth of agricultural goods to India. This trade reflects the mutual benefits both nations derive from agricultural collaboration.

One of the notable achievements in agriculture is the trial order placed by India’s National Dairy Development Board (NDDB) for 50,000 doses of Brazilian cattle semen. This milestone highlights the growing cooperation in livestock development, particularly in enhancing dairy productivity. Furthermore, trade in pulses has also seen significant growth, with Brazil exporting USD 54 million worth of pulses to India in 2023. The exchange of agricultural goods such as pulses, cotton, and livestock is essential for food security in both countries, helping to meet the nutritional needs of their large populations and strengthen their agricultural industries. India and Brazil work together to advance agriculture and Food security.

Through these collaborations, India and Brazil are not only enhancing their agricultural sectors but also ensuring food security for their people, while contributing to a more resilient global agricultural system. The ongoing focus on agricultural innovation, technology transfer, and sustainable practices is expected to yield long-term benefits for both nations.

Defense, Security, and Space Cooperation

Defense and Security

The defense and security cooperation between India and Brazil has been steadily growing since the signing of the defense agreement in 2003. This agreement laid the foundation for a strong strategic partnership, with both nations committed to enhancing their defense capabilities and ensuring regional stability. Over the years, the defense relationship between India and Brazil has expanded across multiple dimensions, including joint military exercises, information-sharing, and technology transfer.

One of the key developments in recent years is the increasing presence of Indian defense companies in Brazil. Indian defense firms such as MKU and SMPP have established operations in Brazil, supplying protective gear and defense-related products, which has further cemented the defense ties between the two countries. These collaborations in defense manufacturing and technology transfer help both nations enhance their capabilities while promoting mutual growth in the defense industry. It is good for India and Brazil’s defense partnership.

A significant milestone in this growing defense relationship was the 2+2 dialogue held in March 2024 in New Delhi. This high-level dialogue, involving India’s defense and foreign ministers and their Brazilian counterparts, marks a new phase in bilateral defense cooperation. It highlights the strategic importance of defense relations between the two countries, focusing on security challenges, defense technology, and strengthening military interoperability. This dialogue is expected to lead to further agreements on joint defense projects, peacekeeping missions, and enhanced security cooperation, reinforcing India and Brazil’s commitment to safeguarding regional and global security.

Space Cooperation

Space cooperation between India and Brazil has been a standout example of how two nations from the Global South can collaborate on cutting-edge technology for mutual benefit. The launch of the Amazonia-1 satellite in 2021 is a testament to the strength of this partnership. Amazonia-1, Brazil’s first dedicated Earth observation satellite, was launched into orbit using India’s Polar Satellite Launch Vehicle (PSLV) from the Sriharikota spaceport. The satellite’s primary purpose is to monitor deforestation, land use, and agricultural activities in the Amazon region, and its successful deployment has deepened the space cooperation between the two countries. India and Brazil are shaking hands to contribute to Space technology.

The Amazonia-1 satellite launch exemplifies India’s technological capabilities and Brazil’s strategic priorities in environmental monitoring. India’s advanced space technology, especially in satellite development and launching, has supported Brazil’s efforts to monitor its vast and ecologically sensitive Amazon rainforest. This collaboration has proven that space partnerships can be a powerful tool in addressing global challenges such as climate change and environmental conservation.

Looking to the future, India and Brazil are exploring further joint initiatives in space cooperation, particularly under the G20 Satellite Mission. This mission aims to strengthen climate and environmental observation, focusing on improving data collection related to climate change, disaster management, and biodiversity. By leveraging each other’s strengths in space technology, both countries are poised to contribute significantly to global environmental monitoring, while also advancing their respective space programs. These space collaborations underscore the growing significance of South-South partnerships in the realm of space exploration and technology.

The India-MERCOSUR Trade Agreement

he India-MERCOSUR Preferential Trade Agreement (PTA) has been a key instrument in deepening trade relations between India and the MERCOSUR bloc, which includes Brazil, Argentina, Paraguay, and Uruguay. Signed to enhance economic cooperation, the PTA provides preferential tariff reductions, creating opportunities for greater market access and facilitating the exchange of goods and services between India and the MERCOSUR countries. Initially signed in 2004, the agreement has paved the way for the two regions to explore areas of mutual interest, focusing on sectors such as agriculture, pharmaceuticals, textiles, chemicals, and automobiles.

An expanded PTA holds the promise of unlocking even more trade opportunities, improving market access, and reducing trade barriers. Both India and Brazil stand to gain significantly from an updated agreement, as it will address emerging sectors like renewable energy, digital trade, and technology, complementing their economic growth strategies. The expanded PTA is expected to increase bilateral trade by reducing tariffs on goods that are currently subject to high import duties. For instance, India’s agricultural products, pharmaceuticals, and textiles will have easier access to the MERCOSUR markets, while Brazil and other MERCOSUR countries will benefit from better access to India’s rapidly growing consumer market.

In addition to improving access to existing markets, the expanded PTA will offer new opportunities in untapped sectors. Brazil’s role as an exporter of raw materials such as lithium, minerals, and agricultural products can align with India’s demand for resources critical to its industrial and technological development. Furthermore, the agreement can stimulate increased collaboration in areas like renewable energy and technology, as both India and MERCOSUR nations seek to expand their green economies.

Ultimately, the expanded PTA will not only benefit India and Brazil but also strengthen the regional economic integration of MERCOSUR, enhancing cooperation and positioning the bloc as a key player in global trade. This partnership exemplifies how emerging economies can create synergies to foster growth and resilience on the international stage.

Conclusion

The evolving relationship between India and Brazil is a testament to the power of strategic cooperation between two of the largest democracies in the Global South. Over the years, their partnership has flourished across multiple sectors, including trade, energy, defense, space, agriculture, and technology. The recent developments in these areas, such as expanding trade agreements, joint defense initiatives, and space collaborations, underscore the growing synergy between the two nations.

The G20 summit in Brazil serves as a pivotal moment to further strengthen these ties, providing an opportunity for both countries to deepen their collaboration on global challenges such as climate change, economic growth, and sustainable development. As India and Brazil continue to align their interests and enhance bilateral cooperation, the future of their strategic partnership looks promising. Their joint efforts not only contribute to regional stability but also hold significant potential for shaping global policies in the years to come.