Brazilian Development, Industry and Trade Minister Márcio Elias Rosa has described India as a “highly important trading partner” as the two countries explore ways to expand their economic and trade relationship. The remarks came during the G20 Trade Ministers’ Meeting in Milwaukee, United States.Key HighlightsBrazil calls India a highly important trading partner.India and Brazil are discussing a broader trade agreement through Mercosur.Terms of reference for expanding the existing arrangement have been drafted.Defence, AI, digital economy and skills development are among areas discussed.Possible Embraer investment in India was also raised.India-Brazil bilateral trade reached .07 billion in 2025-26.Brazil Calls India an Important Trading PartnerSpeaking on the sidelines of the G20 Trade Ministers’ Meeting, Rosa said Brazil is working to diversify its markets while maintaining existing trading relationships.He said India has become an important part of Brazil’s growing economic engagement with Asian countries. According to Rosa, Brazil's approach is to add new markets rather than replace existing partners.“India is a highly important trading partner to Brazil,” Rosa said, adding that India is an economy of global importance and that the two countries have good relations.India and Brazil Discuss Wider Mercosur Trade AgreementThe comments came after Rosa met Indian Commerce and Industry Minister Piyush Goyal during the G20 trade talks.India and Brazil are working on expanding the existing India-Mercosur Preferential Trade Agreement. Rosa said the current arrangement covers a limited number of products and that both sides are looking at a broader agreement.The two countries have completed work on terms of reference that could provide the framework for further negotiations. The existing preferential arrangement provides tariff concessions on 450 tariff lines from India and 452 from Mercosur countries.The broader discussions could eventually cover greater market access and expanded trade in goods, services and investment.Defence, AI and Embraer Investment Also DiscussedTrade was not the only area discussed between the two countries. Rosa said India and Brazil also explored cooperation in defence, artificial intelligence, digital economy, bioeconomy, circular economy and skills development.A possible investment by Brazilian aircraft manufacturer Embraer in India was also discussed. Rosa did not provide details about the possible size, location or nature of any such investment.India-Brazil Trade Target Set at BillionIndia and Brazil have been working to expand bilateral trade in recent years. India's Commerce Ministry said in August that bilateral trade reached .07 billion in 2025-26.Both countries have set an objective of increasing bilateral trade to billion by 2030, with areas such as pharmaceuticals, chemicals, engineering goods and machinery identified for greater cooperation.The India-Mercosur discussions are part of the broader effort to increase market access and diversify trade between the two economies.G20 Trade TalksRosa's comments came as trade ministers from major economies met in Milwaukee for the G20 Trade Ministers’ Meeting.The meeting is taking place amid discussions on global trade rules, industrial overcapacity, tariffs, supply chains and reforms to the international trading system. India is represented by Commerce and Industry Minister Piyush Goyal.The India-Brazil discussions add another dimension to the G20 talks, with both countries exploring opportunities to expand bilateral trade and investment while continuing engagement through multilateral forums.(READ MORE: US Trade Representative Greer Calls for New Global Trade Order at G20)
