India, Brazil set USD 20 billion trade target, sign critical minerals and steel agreement

India and Brazil on Saturday (February 21) set a target of over $20 billion in bilateral trade in the next five years. The two BRICS members also reached an agreement on critical and rare earth minerals. A MoU was also signed between the two countries to enhance cooperation in the field of mining and minerals related to the steel sector.

The announcements were made following wide-ranging delegation-level talks between Prime Minister Narendra Modi and Brazilian President Luiz Inacio Lula Da Silva.

‘Win-win partnership’: PM Modi

"The agreement reached on critical minerals and rare earths is a major step in building a resilient supply chain. Our cooperation in the defence sector is also steadily growing. This is a great example of mutual trust and strategic alignment. We will continue to strengthen this win-win partnership,” said PM Modi during a joint press conference with President Lula.

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The Prime Minister further stated that, being democratic nations, the two countries would continue to advance the interests of the Global South.

"India and Brazil's partnership on the global stage has been strong and influential. As democratic nations, we will continue to advance the priorities and aspirations of the Global South. When India and Brazil work together, the voice of the Global South becomes stronger and more confident,” said PM Modi.

On reform of global institutions

"We believe that all problems must be resolved through dialogue and diplomacy. India and Brazil are unanimous that terrorism and its supporters are enemies of all humanity. We also agree that reform of global institutions is essential to address the challenges of our time. We will continue to work together in this direction,” he added as quoted by ANI.

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He further stated that there was “immense potential” for cooperation in the health and pharmaceutical sectors, adding, “We will work to increase the supply of affordable and quality medicines from India to Brazil.”

MoU signed on steel supply chain

During the day, the Union Ministry of Steel and Brazil’s Ministry of Mines and Energy formalised an MoU aimed at expanding collaboration in mining and minerals linked to the steel industry. The agreement was exchanged at Hyderabad House in New Delhi in the presence of PM Modi and Brazilian President Lula.

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According to an official release, the MoU establishes what the government described as an institutional mechanism to deepen cooperation across the steel value chain. It places emphasis on ensuring the steady and sustainable development of critical raw materials used in steel production.

The release states cooperation will centre on “attracting investment in exploration, mining, and infrastructure development in the steel sector” and on advancing “processing and recycling technologies for minerals.”

Automation in mining

It also covers “automation and the use of advanced technologies in exploration and mining” as well as “use of artificial intelligence in geoscientific data analysis to enhance exploration processes.” The two sides will exchange “best practices in mineral extraction, processing, and environmental management.”

Brazil, a major global iron ore producer with reserves of manganese, nickel and niobium, is seen as a key partner.

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“India currently has a steelmaking capacity of 218 million tonnes. To meet growing domestic demand driven by infrastructure development and industrialisation, Indian companies are undertaking significant expansion in steelmaking capacity,” stated the release.

“In this context, this MoU is an important step towards strengthening cooperation for the development of mineral resources required for steel production, facilitating access to advanced technologies in mineral processing, beneficiation, recycling and data-driven exploration,” it added.

(With agency inputs)