India, Brazil sign mining pact as Modi targets over US$20 billion in trade within five years

India and Brazil signed a mining and minerals cooperation pact as Prime Minister Narendra Modi targets bilateral trade of more than US$20 billion in five years.

India and Brazil have taken a new step to deepen economic ties by signing a cooperation pact on mining and minerals, as New Delhi looks to secure raw materials for its expanding steel industry and strengthen long-term industrial growth amid a global race for strategic resources.

The agreement was signed in the presence of Indian Prime Minister Narendra Modi and Brazilian President Luiz Inácio Lula da Silva during Lula’s three-day visit to New Delhi, according to Reuters.

Mining cooperation to support steel growth

The new pact aims to expand cooperation in exploration, mining, and steel-sector infrastructure, with a focus on attracting investment and strengthening supply chains. According to an Indian government statement cited by Reuters, closer collaboration with Brazil is expected to improve India’s access to raw materials and technologies needed to sustain growth in its steel sector.

Brazil is one of the world’s leading iron ore producers and holds significant reserves of minerals used in steelmaking, making it a strategic partner for India as it scales up industrial capacity.

Modi targets trade beyond US$20 billion

Speaking at a meeting with a Brazilian delegation led by Lula, Modi said both countries are committed to taking bilateral trade “much beyond” US$20 billion over the next five years.

Current bilateral trade between India and Brazil stands at around US$15 billion, according to Reuters.

Modi also said the two countries would work more closely in areas beyond mining, including technology, innovation, digital public infrastructure, artificial intelligence, and semiconductors, signaling a broader push to diversify and modernize the partnership.

India’s expanding steel capacity

India currently has steelmaking capacity of 218 million metric tons, and companies are increasing output to meet growing domestic demand driven by infrastructure investment and industrialization.

In this context, stronger ties with Brazil could help India secure critical mineral inputs and support continued expansion across its steel and manufacturing sectors.

Strategic partnership since 2006

India and Brazil have been strategic partners since 2006, with cooperation spanning trade, defense, energy, agriculture, health, critical minerals, technology, and digital infrastructure.

Brazil is India’s largest trading partner in Latin America and the Caribbean, and both countries also work closely on global issues such as UN reform, climate change, and counter-terrorism.

Lula raises local-currency trade option

During the visit, Lula also advocated for Brazil and India to explore trade settlements in their own currencies instead of relying on the U.S. dollar. However, he dismissed speculation that the BRICS bloc—of which both countries are members—was moving toward a common currency, Reuters reported.

Why this mining pact matters

The India-Brazil mining agreement reflects a broader global trend: closer alignment between resource-rich economies and major industrial markets seeking supply security for steel, infrastructure, and advanced manufacturing.

For both countries, the pact combines resource strength, industrial demand, and a shared interest in expanding trade and strategic cooperation in a rapidly shifting global economy.