India and Brazil sealed a landmark mining and critical minerals pact during President Luiz Inácio Lula da Silva’s state visit to New Delhi on February 21, 2026, strengthening supply chains for steel production and rare earths amid global competition.
Critical Minerals and Rare Earths Cooperation
The agreement focuses on joint exploration, mining investments, and steel sector infrastructure to secure India’s 218 million metric ton steel capacity expansion. Brazil, the world’s second-largest critical minerals holder after China, offers vital resources for EVs, renewables, semiconductors, and defense—reducing New Delhi’s China dependence.
Ambitious Trade Expansion
PM Narendra Modi aims to elevate bilateral trade from $15 billion to over $20 billion within five years, calling Brazil India’s top Latin America partner. Nine MoUs span defense co-production, AI, digital infrastructure, health, and MSMEs, amplifying Global South advocacy on UN reforms and climate action.
Defense and Innovation Synergies
Linking India’s Aatmanirbhar Bharat with Brazil’s defense base enables co-design opportunities. Lula proposed local currency trade, bypassing USD, while both reaffirmed BRICS collaboration—positioning the duo as emerging economy powerhouses.
