As India prepares for Prime Minister Narendra Modi’s arrival in Brazil for the G20 summit, the bilateral ties between the two nations are flourishing across a range of strategic sectors. From trade and energy to defense and space cooperation, India and Brazil are deepening their engagement, reflecting the growing partnership between the two largest democracies in the Global South.

In an exclusive conversation with Financial Express Online, Indian Ambassador to Brazil, Suresh Reddy, shed light on the multifaceted relationship, underscoring the key areas of collaboration and progress. He spoke about the continued growth in bilateral trade, including the critical role Brazil plays in India’s energy security, the evolving defense partnership, and the shared commitment to renewable energy and technological advancement.

Bilateral Trade and Energy Cooperation

Trade between India and Brazil has shown remarkable growth, with bilateral exchanges reaching USD 9.7 billion from January to October 2024. Ambassador Reddy highlighted that a significant portion of this trade is linked to Brazil’s crude oil exports, which are vital for India’s energy needs. For example, in 2024, Brazil’s crude oil exports to India stood at nearly USD 1 billion, contributing to India’s energy security.

“The strategic nature of our trade is evident in the growing engagement of Indian Public Sector Undertakings (PSUs) like ONGC Videsh Ltd. (OVL) in Brazil’s energy sector. Indian investments in exploration and production assets have exceeded USD 5 billion, making Brazil the largest recipient of India’s upstream investments in South America,” the ambassador noted.

On the renewable energy front, Brazil’s leadership in ethanol production complements India’s ambitious target of 20% ethanol blending in fuel by 2025. The two nations signed a Memorandum of Understanding (MoU) on Bioenergy Cooperation in 2020, and their collaboration continues to evolve. He pointed out the launch of the Global Biofuel Alliance during the 2023 G20 Summit as a significant step toward promoting sustainable energy solutions.

Lithium, Food Security, and Agriculture

Brazil’s vast lithium reserves, particularly in the Jequitinhonha Valley, have positioned it as a key player in the global lithium market. This is an area of growing importance, and Ambassador Reddy confirmed that India and Brazil are working together to explore opportunities for deeper cooperation. The two countries signed an MoU on Geology and Mineral Resources in 2020, which is expected to pave the way for further collaboration in this critical sector.

In agriculture, India and Brazil continue to build on their long history of cooperation. The 2008 MoU on Cooperation in Agriculture and Allied Sectors, along with a 2016 agreement between the Indian Council of Agricultural Research (ICAR) and Brazil’s EMBRAPA, has fostered closer ties in areas such as genetic resources, livestock development, and fisheries.

Ambassador Reddy highlighted the recent trial order by India’s National Dairy Development Board (NDDB) for 50,000 doses of Brazilian cattle semen, marking a milestone in dairy sector cooperation. Agricultural trade has also seen significant growth, with India exporting USD 36 million worth of cotton to Brazil in 2024 and Brazil exporting USD 98 million worth of agricultural goods to India. Additionally, the trade in pulses, including USD 54 million worth of exports from Brazil to India in 2023, underscores the critical role of food security in their relationship.

Defence, Security, and Space Cooperation

The defence and security partnership between India and Brazil has been steadily growing since the 2003 defense agreement. Ambassador Reddy noted that over the past year, Brazil’s top military commanders have visited India, and the two countries held their inaugural 2+2 dialogue in March 2024 in New Delhi. “Defence cooperation has become a cornerstone of our strategic relationship,” he stated, adding that Indian defense companies like MKU and SMPP are now active in Brazil, supplying protective gear and other defense-related products.

In space cooperation, India and Brazil continue to build on their successful collaboration, exemplified by the launch of the Amazonia-1 satellite in 2021, which allows Brazil to monitor deforestation and agricultural activities using India’s cutting-edge space technology. Ambassador Reddy highlighted that both nations are exploring further joint initiatives, particularly under the G20 Satellite Mission, which focuses on climate and environmental observation. “Our space partnership is a shining example of South-South cooperation,” he said.

India-MERCOSUR Trade Agreement

He also discussed the ongoing efforts to expand the India-MERCOSUR Preferential Trade Agreement (PTA), a key instrument for enhancing trade and economic cooperation between India and Brazil, as well as other members of the MERCOSUR bloc. “The expanded PTA will open new trade opportunities and reduce market access barriers, benefitting not just India and Brazil, but the entire region,” he explained.

Bottomline

As Prime Minister Modi’s visit to Brazil for the G20 summit draws near, the bilateral relationship between India and Brazil stands as a testament to the strength of South-South cooperation. Ambassador Reddy’s insights underscore the many dimensions of this growing partnership, which spans trade, energy, defense, space, and more. With the G20 summit set to take place in Brazil, the coming years are poised to see even greater collaboration between these two global powers.