Brazilian President Lula seeks to form 'strategic alliance' with India to boost economic growth and trade ties

Brazilian President Luiz Inácio Lula da Silva has announced plans to form a “strategic alliance” with India to strengthen political, economic and technological cooperation between the two nations. In a video message posted on X on Saturday (local time), following Brazilian Vice President Geraldo Alckmin’s recent visit to India, Lula stressed the importance of tapping India’s “exceptional market” for mutual benefit. “The visit of Vice President Geraldo Alckmin to India, in preparation for my trip early next year, is very important because India has an exceptional market. We can have a fantastic alliance with India – political, space, entrepreneurial and economic,” Lula said in the video. “So, I think it was an extraordinary job, and the Indians like Brazil, and Brazilians like Indians. Therefore, we will create a strategic alliance with India and develop both Brazilian and Indian economies,” he added. Outcome of Alckmin’s visit Lula’s comments came a day after Vice President Geraldo Alckmin wrapped up his visit to India, which was aimed at deepening bilateral ties and laying the groundwork for Lula’s state visit to India next year – part of the continued implementation of the road map laid out at the Modi-Lula summit in July. The ultimate goal, as Lula said in the post, was to focus on strengthening business relations, as numerous Brazilian companies seek opportunities to enter the Indian market. He also highlighted several positive outcomes of Alckmin’s return from India, saying he only brings “good news.” Key developments include the opening of an office of Brazilian aerospace company Embraer in India, the implementation of an e-visa to facilitate business travel, and the establishment of new partnerships. Complementarity, not competition Addressing media questions about India and Brazil positioning themselves as alternative markets amid US tariffs, Alckmin explained that the cooperation between the two countries is complementary and not competitive. He further emphasized that both countries are democracies and not rivals, reports ANI. “Irrespective of the American question, we are talking about two countries, two democracies, two countries that defend multilateralism, two countries with continental dimensions, both Brazil and India, which have everything to grow trade, to grow more investments,” he told ANI. Calling India one of the fastest growing countries in the world, he also said that “Brazil has an agricultural harvest this year that is 16 percent better, so there is a lot of possibility for complementarity: in the field of technology, industrial field, mining, agriculture… We are not going to compete on product; we are going to have economic complementarity,” ANI. Growing bilateral trade The increasing engagement between Brazil and India builds on an already robust economic relationship. During Prime Minister Narendra Modi’s visit to Brazil in July, the two leaders set an ambitious target of increasing bilateral trade to $20 billion within five years. This represents a significant acceleration from the current figures. In the fiscal year 2024-2025, merchandise trade between the two nations reached $12.19 billion, strengthening Brazil’s position as India’s largest trading partner in Latin America and the Caribbean, according to the Ministry of Trade and Industry. In August, US President Donald Trump imposed a 50% tariff on several Brazilian goods, which already had a 26.4% levy. His administration also imposed up to 50% tariffs on most Indian exports, including an additional 25% tax in response to India’s continued purchases of Russian crude oil.