India and Brazil have set a target of raising bilateral trade to $30 billion by 2030, as the two countries seek to deepen economic ties, expand market access and encourage greater investment.
The target was set at the 8th Meeting of the India-Brazil Trade Monitoring Mechanism (TMM) in Brasília, where Commerce Secretary Rajesh Agrawal and Brazil’s Secretary of Foreign Trade at the Ministry of Development, Industry, Commerce and Services (MDIC), Tatiana Lacerda Prazeres, co-chaired discussions.
Bilateral trade stood at $15.07 billion in 2025-26, according to the Government of India. Reaching $30 billion would therefore require the two countries to roughly double their current trade within four years.
The discussions focused on areas that could help achieve that growth, including pharmaceuticals, chemicals, engineering goods, machinery and agriculture. India and Brazil also reviewed efforts to expand and modernise the India-MERCOSUR Preferential Trade Agreement.
Beyond merchandise trade, the two sides discussed investment, digital services, critical minerals, renewable energy, infrastructure, logistics and cooperation between small businesses.
What will drive India-Brazil trade towards $30 billion?
India and Brazil see potential for greater trade in several sectors, particularly pharmaceuticals, chemicals, engineering goods and machinery.
For Indian companies, Brazil offers a large consumer market and opportunities in sectors such as healthcare and infrastructure. Brazil, meanwhile, can provide India with opportunities in agriculture, energy, minerals and other areas.
The Trade Monitoring Mechanism provides a platform for the two governments to identify problems faced by businesses and work towards resolving them.
One of the key areas discussed was pharmaceuticals. India is a major supplier of affordable medicines, while Brazil has a large healthcare market. But regulatory requirements can affect how quickly Indian pharmaceutical companies can enter and expand in Brazil.
A February 2026 memorandum of understanding between India’s Central Drugs Standard Control Organisation (CDSCO) and Brazil’s health regulator Agência Nacional de Vigilância Sanitária (ANVISA) provides a framework for greater regulatory cooperation.
India wants this cooperation to create clearer and more predictable pathways for its pharmaceutical products, potentially making it easier for Indian companies to access the Brazilian market.
Agriculture is another area where both countries see room for expansion. India and Brazil discussed priority phytosanitary requests involving agricultural products and agreed to continue technical discussions aimed at reaching reciprocal market-access concessions.
Resolving those issues could allow agricultural trade to expand in both directions.
India-MERCOSUR deal could widen the opportunity
The bilateral target also needs to be viewed alongside India’s trade relationship with MERCOSUR, the South American bloc that includes Argentina, Brazil, Paraguay and Uruguay.
India already has a preferential trade agreement with MERCOSUR, and the two sides are working on expanding and modernising it.
India and MERCOSUR recorded $20.84 billion in trade in 2025, according to the government. The two sides have committed to completing the Terms of Reference for the next stage of negotiations at an early stage.
A broader and modernised agreement could give Indian companies greater access not only to Brazil but also to other markets within the bloc. Brazilian companies could similarly gain easier access to India.
For the $30 billion India-Brazil target, this matters because Brazil is not an isolated market. Improvements in India’s trade arrangements with the wider South American bloc could create additional commercial opportunities for Indian exporters and investors.
Can regulatory changes make trade easier?
Market access will depend not only on tariffs and trade agreements but also on the practical procedures businesses have to follow.
India and Brazil discussed mutual recognition of Electronic Certificates of Origin, which establish where goods were produced and can be required during customs procedures.
Greater acceptance of electronic certificates could reduce paperwork and make cross-border trade more efficient.
The two countries also discussed cooperation involving micro, small and medium enterprises, entrepreneurship and crafts. This could help bring smaller businesses into bilateral trade, rather than leaving overseas expansion largely to large corporations with greater financial and administrative resources.
The latest discussions therefore put considerable emphasis on reducing the friction businesses face after a trade opportunity has been identified.
Investment and new business opportunities
The two governments also want to increase investment flows and encourage companies to explore opportunities beyond traditional goods trade.
An India-Brazil High Level Business Reception was held in Brasília, with more than 25 Indian businesses participating in the delegation led by Commerce Secretary Rajesh Agrawal.
Representatives from companies and groups including Kirloskar Group, UPL and Aditya Birla Group participated in discussions covering critical minerals, renewable energy, agri-business, infrastructure, pharmaceuticals, digital services, logistics and advanced manufacturing.
Brazil has also established an ApexBrasil office in India. ApexBrasil is the country’s trade and investment promotion agency, and the new office is intended to strengthen links between businesses and encourage Brazilian investment in India.
The two countries are also using wider platforms such as BRICS, the G20 and the World Trade Organization to coordinate on economic issues. During the Brasília meeting, both sides reaffirmed support for an open and inclusive multilateral trading system.