In a major boost to the strategic partnership between two of the world's leading emerging economies, India and Brazil have signed a landmark agreement to cooperate on critical minerals and rare earths. The pact was finalized following high-level talks between Prime Minister Narendra Modi and Brazilian President Luiz Inácio Lula da Silva at Hyderabad House in New Delhi on February 21, 2026.
Key Highlights of the Strategic Meeting:
- Critical Minerals Agreement: The two nations signed a Memorandum of Understanding (MoU) focused on the exploration and processing of critical minerals. Brazil, which holds the world’s second-largest reserves of these minerals, will partner with India to build resilient supply chains essential for electric vehicles, solar panels, and high-tech defense equipment.
- Trade Targets: PM Modi and President Lula set an ambitious bilateral trade target of $30 billion by the year 2030. This follows a period of rapid growth in trade, driven largely by India's demand for iron ore and Brazil's interest in India's expanding industrial sector.
- Global South Leadership: Both leaders emphasized their roles as voices for the Global South. PM Modi stated that when India and Brazil work together, the concerns of developing nations gain more confidence and strength on the global stage.
- Defense and Energy: The discussions also covered expanding cooperation in defense manufacturing and sustainable energy, particularly ethanol and biofuels, where Brazil is a global leader.
Context and Significance:
The visit comes at a time when India is actively seeking to diversify its sources of raw materials to support its "Make in India" and "Viksit Bharat 2047" initiatives. Securing a steady supply of rare earths is seen as a strategic necessity for India’s semiconductor and green energy goals. Additionally, the meeting addressed global economic shifts, including the recent U.S. Supreme Court ruling on tariffs, with both nations agreeing to "wait and watch" the developments while strengthening their own bilateral economic fortress.
President Lula’s visit also saw discussions on UN Security Council reforms, with Brazil reaffirming its support for India’s permanent membership. The leaders concluded by highlighting that the India-Brazil relationship has evolved from a traditional trade partnership into a comprehensive strategic alliance capable of influencing global policy.