Brazil and India are seeing President Lula’s state visit as a really important event for their relationship, and business, trade and new tech are what it’s all about. The Commerce and Industry Minister, Piyush Goyal, said the President’s trip was ‘a key moment’ – and asked companies in Brazil to make their work in India bigger. The whole feel of things was planned and looking to the future.
Why this visit matters
The five-day visit shows the two big democracies are getting on better and better in terms of diplomacy. Leaders talked about the trip being based on the same goals for development, the same belief in democracy and the chance for money to be made. Both sides talked about people getting to know each other and a sensible plan covering trade, defending their countries, and technology. President Lula made the point that trade between the two countries had gone up a lot, but said there was still a lot more that could be done. Brazil is, at the moment, India’s most important trading partner in Latin America and the Caribbean, so this visit was a good place to make working together in all areas even better.
Trade is increasing – but could be a lot more
Trade between India and Brazil has gone from small amounts to large amounts over the last twenty years. Trade was about $200 million in 2006, went up to $2.4 billion a few years later and reached around $15 billion last year. Leaders said that, even at $15 billion, it wasn’t as much as the two countries could achieve together. Goyal said, again and again, that trade could grow much faster with money going to specific areas, better access to markets, and working together in a planned way. The two governments said they wanted to make things possible for companies to get bigger and for joint ventures.
The areas where they want to work together
The meeting showed a lot of areas where they could work together even more. Defence, energy and farming were named as areas where they’d worked together for a long time. Now, there’s more attention on health, drugs, science and technology, artificial intelligence and space technology. Digital public systems and AI were very important as areas where joint projects could be made bigger. Officials talked about how to link Brazil’s good position with raw materials with India’s ability to make things and its digital skills, so they could build strong, different supply chains.
An invitation to Brazilian companies and help for investment
Goyal invited companies from Brazil to get bigger in India, saying India had a market with more and more people wanting to buy things, and changing rules for industry. He aimed this at companies in farming, drugs and green energy that could get benefit from India’s own market and its ability to sell things to other countries. Officials stressed that rules would be steady, changes were being made and there was help for making things and moving technology. People in India involved in business said India was a way into regional and world markets for investors from Brazil.
Trade deals and India’s place in world trade
India’s trade plans were the main thing at the business meeting. Goyal said India now had special access to nearly two-thirds of world trade because of free trade deals. He said nine FTAs had made India more closely linked with developed countries. India has agreed what it wants with Israel and the Gulf Cooperation Council and started talks with Canada. Officials said proper talks with Ottawa could start soon. These moves are part of a bigger effort to put India into more world supply chains and give partners better access to markets. Conclusion: a sensible plan to get bigger The meeting made it clear: both capitals want to turn good diplomatic relations into real economic results. With definite goals in defence, energy, AI and drugs, the visit sets a sensible plan to get trade and investment up. For companies in Brazil, the message was direct – India offers size, access and partnerships to grow with.
