(MENAFN- Live Mint) New Delhi: India and Brazil have agreed to explore ways to expand their existing Preferential Trade Agreement (PTA) as part of efforts to deepen bilateral economic and strategic ties. The agreement was reached during the India-Brazil Business Dialogue in New Delhi on Tuesday, which was attended by Brazil's vice president Geraldo Alckmin, defence minister José Múcio Monteiro Filho, and India's commerce and industry minister Piyush Goyal.

Goyal said at the event, organised by Ficci, that discussions focused on strengthening trade cooperation and widening market access for businesses from both countries.“With Brazil today, we discussed expanding our PTA from its current level so we can penetrate the South American market in a bigger way,” Goyal told reporters, describing the meeting as“a very good dialogue and discussion” with the visiting Brazilian delegation.

He underscored that the participation of Brazil's top leadership, including its defence and health ministers, reflected the“increasing interest in the Indian growth story".

Vice president Geraldo Alckmin, who also serves as Brazil's minister of development, industry, trade and services, said India and Brazil share a strong relationship and that bilateral trade between the two nations touched $12 billion in 2024.

“This year, exports from India to Brazil grew over 30% and exports from Brazil are also growing. We will overcome the foreign trade target of $20 billion by 2030. Both countries do not compete but complement each other. Brazil is opening its doors to Indian investment, and together we can transform our economies and forge a strong Brazil–India alliance for the future,” Alckmin said.

Alckmin added that Brazil considered India a priority partner for export and investment diversification.“The ongoing cooperation on an investment facilitation agreement and measures to avoid double taxation would create a more predictable and secure business environment. We want to broaden the Preferential Trade Agreement so that our trade flows expand. We also want to strengthen our long-term cooperation in the civil and defence sectors,” he added.

The vice president also invited Indian companies to invest in Brazilian sectors such as automotive, IT, renewables, clean energy, healthcare, aerospace, agriculture, semiconductors, and digital innovation. He said that both sides were working on an e-visa system to enhance connectivity and ease of travel.

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Responding to a question on whether India's relationship with Brazil was becoming more strategic in light of the US tariff hikes, Goyal said,“Our friendships aren't determined by other factors. I don't think that makes any difference.”

According to commerce ministry data, India maintained its trade surplus with Brazil in FY25, with exports worth $6.77 billion and imports worth $5.42 billion, taking total bilateral merchandise trade to $12.19 billion during the year. In FY24, India's exports to Brazil stood at $6.02 billion and imports at $6.21 billion, taking total trade to $12.23 billion. In FY23, exports were $9.92 billion and imports $6.63 billion, bringing overall trade to $16.55 billion. The figures show, however, that overall bilateral trade has moderated since FY23 owing to lower commodity prices and reduced demand for certain industrial goods.

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Marking World Food Day, Goyal highlighted the strong agricultural partnership between the two countries, calling India and Brazil“two leading agri-producing nations contributing significantly to global food security". The dialogue will open new avenues for collaboration in agribusiness, food processing, and sustainable farming, he said.

Quoting prime minister Narendra Modi, Goyal said India-Brazil relations should be“as colourful as a carnival and as passionate as football”, adding that traditional wellness practices such as yoga and Ayurveda-already included in Brazil's healthcare system-could further strengthen cultural and healthcare cooperation.

Goyal added,“We are also in active dialogue with the US, EU, Chile, Peru, New Zealand and Oman, clearly showing that India is a favoured and preferred destination for investment and bilateral trade.”

Reiterating India's robust economic fundamentals, Goyal said the country recorded 7.8% GDP growth in the first quarter, making it the fastest-growing major economy in the world. He expressed confidence that India would maintain this momentum for“at least the next two decades”, supported by strong macroeconomic fundamentals, modern infrastructure, and improved quality of life for citizens.

Goyal also cited the International Monetary Fund's recent upward revision of India's growth projection for 2025 from 6.4% to 6.6% and noted that about 250 million people have been lifted out of poverty over the past 12 years.“India's welfare and infrastructure investments are working in tandem to create a more inclusive and sustainable economy,” he said, emphasising the government's commitment to structural reforms, ease of doing business, and reduced compliance burdens.

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