Brazilian President Lula Announces Strategic Alliance With India To Boost Economies

Brazilian President Luiz Inacio Lula da Silva has announced plans to establish a "strategic alliance" with India, aimed at strengthening political, economic, and technological ties between the two nations. The announcement follows Vice President Geraldo Alckmin's recent visit to India, which highlighted the complementary nature of bilateral trade and India's large and growing market.

In a video message shared on X on Saturday (local time), Lula underscored the significance of reinforcing relations with New Delhi. "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," he said. He added, "Indians like Brazil, and Brazilians like Indians. Therefore, we will create a strategic alliance with India and develop both Brazilian and Indian economies."

Lula's remarks came a day after Alckmin's visit, which aimed to deepen bilateral cooperation and pave the way for Lula's upcoming state visit to India next year. The visit also continued the implementation of the roadmap set during the Modi-Lula summit in July.

Highlighting business opportunities, Lula noted that Alckmin returned with "a lot of updates" and "good news," including the opening of an office by Brazilian aerospace company Embraer, the implementation of an e-visa system to facilitate business travel, and the formation of new partnerships. "Geraldo Alckmin is a vice president who only brings me good news. He returned from India with lots of updates: Embraer opening an office there, electronic visas to facilitate business, and new partnerships," Lula said.

During his visit, Alckmin emphasised that India and Brazil are complementary partners rather than competitors. Responding to questions about the positioning of India and Brazil as alternative markets amid U.S. tariffs, he stated, "We are not going to compete on product; we are going to have economic complementarity."

Alckmin further highlighted the growth potential of both nations, noting that India is one of the fastest-growing economies globally, expanding at around 7 percent, while Brazil is enjoying an agricultural harvest 16 percent higher than the previous year. He added, "Independent of the American question, we are talking about two countries, two democracies, two countries that defend multilateralism, two countries of continental dimensions, both Brazil and India, that have everything to make trade grow, to make more investments grow... We are not going to compete on product; we are going to have economic complementarity in technology, industry, mining, and agriculture."

The announcement comes in the context of U.S. tariffs on both nations. In August, President Donald Trump imposed a 50 percent tariff on several Brazilian goods, which already faced a 26.4 percent levy. India faces tariffs of up to 50 percent on most exports to the U.S., among the highest for any American trading partner.

Bilateral economic engagement between India and Brazil has been steadily growing. During Prime Minister Narendra Modi's state visit to Brazil in July, both leaders set a target of raising bilateral trade to USD 20 billion within five years. In FY 2024-25, merchandise trade between India and Brazil reached USD 12.19 billion, making Brazil India's largest trading partner in Latin America and the Caribbean, according to the Ministry of Commerce and Industry.