India, Brazil Sign Rare Earths Pact; To ‘Wait and Watch’ US Supreme Court Tariff Ruling Fallout
New Delhi: India and Brazil on Saturday signed a landmark agreement on cooperation in rare earths and critical minerals, set an ambitious bilateral trade target of $30 billion by 2030, and reaffirmed their commitment to strengthening the voice of the Global South following talks between Prime Minister Narendra Modi and Brazilian President Luiz Inácio Lula da Silva.
The two leaders also discussed the recent ruling by the Supreme Court of the United States striking down global tariffs imposed by US President Donald Trump, agreeing to closely study its implications for bilateral trade.
“We will essentially be in a wait-and-watch mode to see how the administration responds to this judgment and assess its impact on our trade,” said MEA Secretary (East) P. Kumaran during a media briefing.
Rare Earths and Supply Chain Resilience
Modi described the critical minerals agreement as a significant step toward building resilient supply chains and potentially reducing dependence on China. Brazilian President Lula presented details of Brazil’s vast rare earth and critical mineral reserves, noting that only 30 per cent have been explored, offering substantial scope for partnership in exploration and processing.
The two sides signed nine agreements in total, including cooperation in mining for the steel supply chain. Brazil also announced it would extend business visas for Indian ordinary passport holders to 10 years.
Trade, Technology and Energy Cooperation
Both leaders underlined their shared goal of expanding trade to $30 billion by 2030. Modi said the expansion of India’s trade agreement with Mercosur would further boost economic ties.
Highlighting technology collaboration as central to Global South solidarity, Modi said cooperation in Artificial Intelligence, supercomputing, semiconductors and blockchain would be prioritised. Lula described the meeting as one between a “digital superpower” and a “renewable energy superpower.”
Energy transition featured prominently in the discussions, with both sides committing to deepen cooperation in renewable energy, ethanol blending and sustainable aviation fuel.
Strategic Dialogue and Multilateral Engagement
The leaders reaffirmed defence as a key pillar of the India-Brazil Strategic Partnership, emphasising co-design and co-production by linking India’s Atmanirbhar Bharat initiative with Brazil’s defence industrial base.
They also stressed the importance of reforms at the United Nations, particularly expansion of the United Nations Security Council in both permanent and non-permanent categories. India and Brazil reiterated mutual support for each other’s bids for permanent membership, working under the G4 framework alongside Japan and Germany. India also welcomed Brazil’s backing for its candidature for a non-permanent UNSC seat for the 2028–29 term.
Both countries, described by Lula as crucial voices at the UN, WTO and G20, pledged to strengthen their strategic dialogue amid global turbulence. They also strongly condemned cross-border terrorism, including the Pahalgam attack and the Red Fort terror incident.
“As democratic countries, when India and Brazil work together, the voice of the Global South becomes stronger and more confident,” Modi said.