India took a step toward strengthening its trade relationship with Brazil on 21st February and signed an agreement to strengthen its cooperation in mining and minerals, as it tries to satisfy increased domestic steel demand and capacity building in an international rush to get raw materials.
The contract was signed in the presence of Prime Minister of India Narendra Modi and Brazilian President Luiz Inacio Lula da Silva, who paid a visit to New Delhi this week.
Brazil is also one of the most iron ore producers in the world and has huge deposits of iron ore minerals that are vital in the production of steel. Tighter integration will enable India to gain access to raw materials and technologies required to support the long-term development of its steel industry, an Indian government statement said.
INFRASTRUCTURE INVESTMENT
It will be oriented towards having an attraction in exploration, mining and steel sector infrastructure, said the statement.
The capacity of steel production in India is 218 million metric tons, and firms are increasing it to address the increasing local demand due to the growth of infrastructure and industrialisation in India.
Covering an encounter with a Brazilian delegation headed by Lula, Modi claimed that their “discussions had been on the methods of enhancing the India-Brazil trade alliance.”
Modi pledged that “the bilateral trade would go far above 20 billion within five years.”
The bilateral trade between the two countries stands at approximately 15 billion currently.
Modi also said that “our nations would closely collaborate in the sphere of technology, innovation, digital public infrastructure, AI, semiconductors and so on.”
Largest trading partner in Latin America
India and Brazil have enjoyed a long-term partnership dating back to 2006, and the collaboration has been in terms of trade, defence, energy, agriculture, health, critical minerals, technology and digital infrastructure.
Brazil is the biggest trading partner in the Latin America and Caribbean region, and the two nations coordinate on international matters like the U.N. reform, climate change and counter-terrorism.
Lula, on Thursday, promoted trade between Brazil and India to use their own currencies instead of having to settle in U.S. dollars, but ruled out speculations of the BRICS group of countries, which both countries belong to, forming a common currency.
