Modi and Lula have pledged to increase bilateral trade to US$30 billion by 2030. Brazil is India’s largest trading partner in Latin America.
The deal on rare earths is particularly significant as Brazil has the world’s second-largest reserves of critical minerals, according to analysts. Rare earths are crucial in the production of goods ranging from smartphones to jet engines.
Closer cooperation between the two founding Brics members is expected to build momentum for a more multipolar world in which developing countries playing a larger role in global affairs.
“Brazil is an important partner for India, from Brics to achieving net zero emissions. But more importantly, trade between India and Latin America can be catapulted to a new level,” said Vivek Mishra, deputy director of strategic studies at the Observer Research Foundation.
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