India signs mining deal with Brazil, eyes $20 billion trade target

India on Saturday signed a pact with Brazil to expand cooperation in mining and minerals, as it seeks to deepen trade ties and support rising domestic steel demand amid a global race for raw materials.

The agreement was signed in the presence of Prime Minister Narendra Modi and Brazilian President Luiz Inacio Lula da Silva, who arrived in New Delhi earlier this week for a three-day visit.

Brazil is among the world’s top producers of iron ore and holds large reserves of minerals critical to steelmaking. An Indian government statement said closer cooperation is expected to improve India’s access to raw materials and technologies needed to sustain long-term growth in its steel sector.

INFRASTRUCTURE INVESTMENT

The statement said the cooperation will focus on attracting investment in exploration, mining and steel sector infrastructure.

India has steelmaking capacity of 218 million metric tons, with companies expanding output to meet rising domestic demand driven by infrastructure development and industrialisation.

Addressing a meeting with a Brazilian delegation led by Lula, Modi said discussions had focused on ways to deepen the India-Brazil trade partnership.

“We are committed to taking bilateral trade much beyond $20 billion in the next five years,” Modi said.

Bilateral trade between the two countries currently stands at about $15 billion.

“Our nations will also work closely in areas such as technology, innovation, digital public infrastructure, AI, semiconductors and more,” Modi said.

LARGEST TRADING PARTNER IN LATIN AMERICA

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

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

On Thursday, Lula advocated for Brazil and India to conduct trade in their own currencies rather than settling transactions in U.S. dollars, but dismissed speculation that the BRICS group of countries, of which both nations are members, would create a common currency.

(With inputs from Reuters)