Brazil and India are set to become formidable economic partners through a new ‘strategic alliance’ aimed at deepening their collaboration across political, economic, and technological spheres. President Luiz Inacio Lula da Silva championed this initiative, envisioning a partnership that could significantly influence global economic trends. This move gains momentum from the recent successful visit of Brazilian Vice President Geraldo Alckmin to India.
President Lula expressed his conviction in the vast potential of the Indian market and the extensive possibilities for a dynamic partnership. He outlined potential areas of cooperation including politics, space programs, entrepreneurship, and economic development. “Therefore, we will create a strategic alliance with India and develop both Brazilian and Indian economies,” he remarked, emphasizing the strong existing bonds between the two countries.
Vice President Alckmin’s visit was instrumental in strengthening business relationships and encouraging Brazilian companies to expand their presence in India. He returned with news of tangible achievements, such as the establishment of Embraer’s Indian subsidiary, the implementation of an electronic visa system to boost business travel, and the formation of several new collaborative agreements.
Highlighting the synergistic potential, Alckmin stated that India and Brazil offer complementary markets. He presented this partnership as an attractive alternative for trade, especially in light of rising U.S. tariffs. “We are not going to compete on product, we are going to have economic complementarity,” he affirmed, citing India’s impressive seven percent economic growth rate and Brazil’s record 16 percent agricultural harvest as prime opportunities for collaboration in technology, industry, mining, and agriculture.
The formation of this alliance occurs amid increased trade restrictions from the U.S., impacting both nations. Despite these external pressures, the economic ties between India and Brazil are growing robustly. A key objective, set during Prime Minister Narendra Modi’s visit to Brazil, is to increase bilateral trade to USD 20 billion within five years. For the fiscal year 2024-25, merchandise trade has already reached USD 12.19 billion, cementing Brazil’s status as India’s largest trading partner in the Latin American and Caribbean region. This strategic alliance holds the promise of a transformative era for global trade and cooperation.
