Officials said the two leaders are expected to sign a memorandum of understanding on critical minerals during Saturday’s talks and explore ways to expand broader trade ties, News.Az reports, citing foreign media.
Brazil holds the world’s second-largest reserves of rare earths — materials essential for electric vehicles, solar panels, smartphones, jet engines and guided missiles. India, seeking to reduce its reliance on top exporter China, has been ramping up domestic production and recycling while pursuing alternative suppliers abroad.
Lula arrived in the Indian capital on Wednesday, leading a delegation that includes more than a dozen ministers and senior business representatives for a global summit.
India is currently the 10th-largest market for Brazilian exports, with bilateral trade exceeding $15 billion in 2025. The two countries have set a goal of increasing trade to $20 billion by 2030.
With China maintaining a near-monopoly on rare earth production, several countries are seeking diversified supply chains. Rishabh Jain of the Delhi-based Council on Energy, Environment and Water noted that India’s growing engagement with Brazil complements its recent supply chain partnerships with the United States, France and the European Union.
While Western partnerships provide access to advanced technology, financing and processing capabilities, Jain said cooperation within the Global South is vital for securing diversified resource access and influencing emerging global trade rules.
Modi and Lula are also expected to discuss global economic pressures and strains on multilateral trade systems, particularly after both nations were affected by US tariffs in 2025. The United States has since pledged to roll back duties on Indian goods under a trade agreement announced earlier this month.
Brazilian diplomat Susan Kleebank, secretary for Asia and the Pacific, said the leaders would exchange views on challenges facing multilateralism and international trade.
Brazil is India’s largest trading partner in Latin America. Major Brazilian exports to India include sugar, crude oil, vegetable oils, cotton and iron ore — the latter seeing strong demand due to India’s rapid infrastructure expansion and industrial growth as it moves toward becoming the world’s fourth-largest economy.
Brazilian companies are also expanding their footprint in India. Last month, aerospace manufacturer Embraer and India’s Adani Group announced plans to collaborate on aircraft manufacturing in the country.
Earlier in his visit, Lula addressed the AI Impact Summit in Delhi, calling for a multilateral and inclusive global governance framework for artificial intelligence.
After concluding his visit to India, Lula is scheduled to travel to South Korea for talks with President Lee Jae Myung and to attend a business forum.
