India took a significant step toward strengthening trade ties with Brazil on Saturday by signing an agreement to expand cooperation in mining and minerals. This move aims to meet India's surging domestic demand for steel and support its production capacity expansion amid a global race for raw materials.
اضافة اعلان
The signing ceremony was attended by Indian Prime Minister Narendra Modi and Brazilian President Luiz Inácio Lula da Silva, who arrived in New Delhi for a three-day official visit.
Securing Raw Materials
Brazil is one of the world's leading producers of iron ore and holds vast reserves of minerals essential for steel manufacturing. According to a statement from the Indian government, this close cooperation is expected to enhance India’s access to the raw materials and technologies required to sustain long-term growth in its steel sector.
The statement further noted that the partnership will focus on attracting investments in exploration, mining, and steel industry infrastructure.
Growth and Trade Targets
India’s current steel production capacity stands at 218 million tons. Companies are actively expanding production to keep pace with domestic demand driven by massive infrastructure development and manufacturing growth.
During a meeting with the Brazilian delegation, Prime Minister Modi emphasized that discussions centered on deepening the bilateral trade partnership.
"We pledge to increase the volume of bilateral trade to over $20 billion within the next five years," Modi stated.
Currently, bilateral trade between the two nations sits at approximately $15 billion.
A Strategic Partnership
India and Brazil have been strategic partners since 2006, with cooperation spanning trade, defense, energy, agriculture, health, strategic minerals, technology, and digital infrastructure.
Brazil remains India's largest trading partner in the Latin America and Caribbean region. The two nations also collaborate closely on global issues, including United Nations reform, climate change, and counter-terrorism.
— Reuters
