Beyond diplomacy: India and Brazil should seize this strategic opportunity

Brazil President Lula's India visit signals a shift towards deeper economic and technology cooperation; both nations must close the trade-investment gap and align on global governance reform

Brazilian President Luiz Inácio Lula da Silva’s visit to India from February 18-22, 2026, carries more than the symbolism of a state visit. He brings with him a clear message: that India and Brazil see each other as strategic partners in a world where economic alliances are being actively rethought.

 

The visit follows Prime Minister Narendra Modi’s trip to Brazil during the BRICS Summit in July 2025, but this engagement marks a step-change in ambition. President Lula is accompanied by 14 ministers and the largest Brazilian business delegation ever to visit India – an unmistakable signal that economic cooperation, not just diplomatic alignment, is at the centre of the agenda. 

 

That emphasis reflects current global realities. With geopolitical tensions reshaping supply chains and technology ecosystems, major developing economies are diversifying partnerships beyond traditional trans-Atlantic or East Asian poles. For India, stronger ties with Brazil reinforce its outreach to Latin America and the wider Global South. For Brazil, deeper engagement with India strengthens its presence in Asia’s fastest-growing major economy. The convergence is pragmatic, not ideological. 

Technology as the new anchor

 

Technology cooperation is emerging as a defining pillar of the relationship. President Lula’s participation in the India AI Impact Summit - the first such summit hosted in the Global South - highlights a shared interest in shaping how frontier technologies are governed and deployed. Rather than importing regulatory frameworks, both countries are seeking to articulate approaches to artificial intelligence that prioritise inclusion, development and public interest.

 

This ambition is grounded in experience. India and Brazil have each built large-scale digital public infrastructure - India Stack and Brazil’s Pix payment system - that has transformed financial inclusion and service delivery. These platforms now offer scope for deeper collaboration, from structured knowledge exchange to joint development of scalable digital solutions and even deployment in third countries facing similar developmental challenges.

 

The trade-investment gap

 

Economic fundamentals reinforce the case for closer engagement. Brazil is already India’s largest trading partner in the Latin America and Caribbean region. Bilateral trade rose by 25 per cent in 2025 to reach $15 billion, up from $12.2 billion in 2024, and both governments have set a target of $20 billion by 2030.

 

Yet, these numbers also point to unrealised potential. Investment flows between the two countries remain modest relative to their economic size. Discussions on an India–Mercosur preferential trade agreement could help unlock new complementarities, but sustained progress will depend on regulatory clarity, logistics integration and business-to-business engagement.

 

The establishment of a ministerial-level Commerce and Trade Review Mechanism in 2025 is a step in that direction. Institutional mechanisms of this kind are essential if political intent is to translate into durable economic outcomes rather than episodic gains tied to high-level visits.

 

Aligning in a fragmented world

 

The broader multilateral context gives additional weight to the partnership. India and Brazil have long advocated reform of global governance institutions, arguing that existing frameworks no longer reflect contemporary economic realities. India’s BRICS presidency this year, alongside both countries’ active participation in the G20, offers an opportunity to coordinate positions on issues ranging from climate finance and energy transition to WTO reform.

 

Sectoral cooperation provides further ballast. Pharmaceuticals, critical minerals, and aviation are some of the key areas that are expected to feature prominently in discussions. India’s role as a global supplier of affordable medicines complements Brazil’s large public healthcare system, opening avenues for joint research and access-driven partnerships. Brazil’s formal recognition of Ayurveda in 2017 has already strengthened a decades-old collaboration in healthcare.

 

Critical minerals represent a newer strategic frontier. As countries accelerate clean energy transitions, secured access to these resources has become a policy priority. Brazil’s reserves position it as a potential partner for India - not only to meet domestic requirements but also to deepen India’s long-term engagement with Latin America.

 

Energy cooperation completes the picture. Opportunities span oil exploration, renewables, offshore energy and biofuels. Brazil’s experience with large-scale biofuel deployment aligns closely with India’s ethanol blending ambitions, while Brazil’s role as a co-founding member of the Global Biofuel Alliance that was launched by India in 2023, reflects shared thinking on balanced energy transitions.

 

From intent to outcomes

 

Beyond these areas, opportunities exist in space, defence, agriculture, textiles, tourism and automotive manufacturing. Taken together, President Lula’s visit reflects a recognition that India–Brazil ties need to move beyond episodic diplomacy towards sustained strategic cooperation.

 

The challenge now lies in execution. Converting shared ambition into tangible outcomes will require consistent institutional follow-through, deeper private-sector engagement and a willingness to align regulatory and technological frameworks. If that happens, India and Brazil could emerge not merely as strategic partners, but as co-shapers of economic and technological pathways in the Global South.

 

(The author is Director General, Ficci) 

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