What happened?
On August 7, 2025, Indian Prime Minister Narendra Modi and Brazilian President Luiz Inácio Lula da Silva held a phone call to discuss a range of bilateral and global issues, including the recent imposition of US tariffs on both countries. During the conversation, Lula confirmed a state visit to India in early 2026. President Lula expressed concern over the “unilateral imposition of tariffs,” with Brazil and India identified as the two most affected countries. The two leaders also reaffirmed their goal of increasing bilateral trade to over $20 billion annually by 2030, up from approximately $12 billion currently. Discussions included expanding the India–Mercosur preferential trade agreement and enhancing cooperation on virtual payment platforms.
Why it matters to India
The call underscores growing alignment among major emerging economies. India and Brazil are seeking stronger economic ties and multilateral cooperation through forums like BRICS to address shared concerns. The statement further illustrates India’s commitment to maintaining diversified energy partnerships while continuing engagement with key global actors, including both the United States and Russia. India’s participation in dialogues with other major economies such as Brazil—and its upcoming presence at the SCO summit in China—signals a multi-aligned diplomatic approach, based on strategic autonomy and energy security.