India-Brazil sign rare earth pact, $20bn trade

India and Brazil have signed a significant pact to enhance cooperation in critical minerals and rare earths, following discussions between Prime Minister Narendra Modi and President Luiz Inácio Lula da Silva. The agreement aims to strengthen their strategic partnership across various sectors, including energy, trade, and defense. Both leaders emphasized their commitment to increasing bilateral trade to over $20 billion in the next five years, up from approximately $15 billion last year, and tackling non-tariff barriers to facilitate commerce. A total of nine memorandums of understanding (MoUs) were signed, covering areas like digital infrastructure and support for micro, small, and medium enterprises. Modi highlighted that this cooperation extends beyond economic ties, focusing also on global governance and multilateral reforms. The partnership is further underscored by Brazil's rich resources in iron ore and other critical minerals, positioning it as a vital partner for India's manufacturing and defense sectors. Both leaders expressed a shared vision for a win-win partnership that aligns with their respective national interests, aiming to enhance trade relations while contributing to a stronger voice for the Global South on the international stage.