India took a step to enhance trade relations with Brazil on Saturday, signing an agreement to intensify collaboration in mining and minerals as it attempts to fulfill increasing domestic steel requirements and aid the expansion of capacity amid the global struggle for raw materials.
The treaty was signed in the presence of the Indian Prime Minister Narendra Modi and Brazilian President Luiz Inacio Lula da Silva, who was on a three-day visit to New Delhi earlier this week.
Brazil is one of the largest iron ore producers in the world, and it possesses massive deposits of minerals, which are essential in the steelmaking process.
An Indian government statement indicated that the increased collaboration is likely to enhance access to raw materials and technologies required to support India to maintain long term development of its steel industry.
The statement reported that the cooperation will center around the attraction of investment in exploration, and the infrastructural areas of the mining and steel sector.
India has a capacity of 218 million metric tons of steel making, and companies are increasing their output to satisfy the increasing demand in India due to infrastructure development and industrialization.
In response to a meeting with a Brazilian delegation, headed by Lula, Modi indicated that they had been negotiating on how to strengthen the Indian-Brazilian trade relationship.
Modi said, “We are committed to taking bilateral trade much beyond $20 billion in the next five years.” The current bilateral trade between the two countries reaches approximately $15 billion.
Modi added, “Our nations will also work closely in areas such as technology, innovation, digital public infrastructure, AI, semiconductors, and more.”
India and Brazil have been strategic partners since the year 2006, and the cooperation between the countries has included trade, defense, energy, agriculture, health, critical minerals, technology, and digital infrastructure.
Brazil is the biggest trading partner of India in the region of Latin American and Caribbean region, and the two nations engage with each other on international matters like U.N reform, climate change, and counter-terrorism.
Lula suggested on Thursday the idea that Brazil and India should do business in their local currencies instead of transacting in U.S. dollars, but ruled out the possibility that the BRICS countries, including Brazil and India, would establish a shared currency.
