Brazilian President Luiz Inácio Lula da Silva’s five-day visit to New Delhi was a step in that direction. Lula has traditionally championed the cause of emerging economies. In Prime Minister Narendra Modi, he found a leader with a similar vision. Brazil will also open opportunities for India in resource-rich South America, which has largely remained unexplored for Indian entrepreneurs.

Market Diversification

Brazilian economy is diversifying from the markets in the Western Hemisphere, with a focus on Asia. India is a big pillar of Brazil’s Asia policy, and the recent developments also come against the backdrop of the Indian economy's market diversification amid the US tariff turmoil.

Memoranda of Understanding (MoU) on critical minerals with Brazil were the major outcomes of the official State visit. Another MoU, which was aimed at enhancing cooperation in and cooperation in micro, small, and medium enterprises (MSMEs) entrepreneurship, will boost capacity-building.

The Way Forward  

Brazil now needs to implement non-tariff barriers and protectionist policies so that the Indian industry can cash in on the opportunities. During the State visit, the Brazilian President and the Indian Prime Minister directed their respective sides to work on eliminating non-tariff barriers in bilateral trade, with a view to reducing obstacles and further promoting trade between the two countries. Brazil has extended the business visa for ordinary Indian passport holders to 10 years. This came into effect on 7 February, 2026. Brazil has an advanced civil aviation industry, and the Indian entrepreneurs need to take full advantage of that.  

India and Brazil are also quietly but surely forging a partnership on digital public infrastructure (DPI) by sharing best practices. The countries announced a Joint Declaration on Digital Partnership for the Future — a new, strategic chapter of bilateral relations, embodying a shared vision for a digitally empowered future.

India-Brazil Digital Partnership For The Future

The India-Brazil Digital Partnership for the Future will encompass bilateral cooperation across a wide range of critical areas, including DPI, through joint initiatives, institutions, and projects.

As both countries are recognised for their robust digital infrastructure, they could collaborate on artificial intelligence (AI) adoption and deliberate on national strategies, large language models (LLMs), applications, and explore joint projects, such as those involving model training and data protection frameworks.

India and Brazil have decided to advance the use of AI in the education sector, besides leveraging DPIs to accelerate sustainable development and strengthen climate action.

India-MERCOSUR Trade Ties

As the India-Brazil economic partnership moves to the next phase, it is the opportune moment to strengthen India-MERCOSUR trade ties so Indian traders can expand in South America. The India–MERCOSUR Preferential Trade Agreement (PTA) was signed in 2004. It came into force in 2009. The current scope of the PTA could be significantly and substantially expanded. 

The negotiations on the expansion of the India–MERCOSUR PTA must be advanced in a timely and structured manner, and Brazil needs to take up the leadership role in this.

India and Brazil have signed an MoU on the Mutual Recognition of Electronic Certificates of Origin (e-CoO), which will enable the secure and immediate validation of electronic signatures, increasing agility, transparency, reliability, and legal certainty in origin verification procedures, reflecting the commitment of both countries to administrative modernisation, harmonisation of practices, and convergence with international standards. 

Defence Infrastructure

Defence is also emerging as an integral pillar of the India-Brazil Strategic Partnership, with a potential for co-production by linking India’s Atmanirbhar Bharat with Brazil’s defence industrial base. Amid geopolitical and geoeconomic uncertainties, both India and Brazil must now pitch for a revitalised multilateralism to address global challenges and commit to reforming global governance by promoting an effective, democratic, and accountable international and multilateral system. This will enhance the representation of developing countries, benefitting the Global South.

There is a pressing need to strengthen multilateralism and revitalise dialogue for resolving disputes, as diplomacy is the most effective means of ensuring international peace and security. 

(The writer is a commentator on geopolitics and geoeconomics. Views are personal.)