Will Deal Open Up India's Access to Brazil's Minerals?
India moved to deepen trade ties with Brazil, signing a pact to expand cooperation in mining and minerals as it seeks to meet rising domestic steel demand and support capacity expansion.
The agreement between India's Prime Minister Narendra Modi and Brazilian President Luiz Inacio Lula da Silva is expected to improve India's access to raw materials and technologies needed to sustain growth in its steel sector, according to an Indian government statement.
Brazil is among the world's top producers of iron ore and holds large reserves of minerals critical to steelmaking.
Securing long-term steelmaking raw materials
The cooperation will focus on attracting investment in exploration, mining and steel sector infrastructure. India has steelmaking capacity of 218 million metric tons and companies are expanding output to meet rising domestic demand.
This requires a stable procurement pipeline for iron ore and manganese. "We are committed to taking bilateral trade much beyond US$20bn in the next five years," said Modi.
He added that bilateral trade between the two countries currently stands at about US$15bn. The pact aims to ensure that procurement teams have access to the raw materials and technologies needed for sustainable industrial growth.
Brazil’s vast iron ore and nickel reserves
Brazil is a renewable energy and mineral superpower, holding the world's second-largest reserves of critical minerals. In 2025, Brazilian iron ore production rose to 336.1 million metric tons, the highest annual volume since 2018.
Major producers like Vale are aiming to produce up to 360 million tons by 2030. The mining sector's revenue totaled R$298.8bn in 2025, a 10.3% increase year-on-year.
For procurement executives, Brazil offers not only volume but high-grade ore that supports steel decarbonisation. Iron ore accounted for 62.8% of total mineral exports in 2025, highlighting its dominance in Brazil's export portfolio and its availability for international markets.
Technological collaboration in mineral processing
The agreement also covers processing and recycling technologies for minerals, which are vital for modern procurement standards.
"Our nations will also work closely in areas such as technology, innovation, digital public infrastructure, AI, semiconductors and more," said Modi.
This includes the use of artificial intelligence in geoscientific data analysis to enhance exploration. Access to advanced technologies in mineral processing, beneficiation and recycling will help Indian companies prepare steelmaking inputs more efficiently.
The MoU provides an institutional framework for best practices in mineral extraction and environmental management, ensuring that procurement is aligned with global standards for sustainability and operational efficiency in the mining sector.
Trading in national currencies for efficiency
President Lula has called for Brazil and India to conduct trade in their own currencies. This move is designed to simplify settlements and reduce exposure to US dollar fluctuations.
Lula highlighted that this translates to a commitment to technology to drive inclusive development. For procurement departments, trading in local currencies could streamline the purchasing process for large-scale mineral imports.
Both nations are working to at least double bilateral trade to US$30bn by the year 2030.
Building resilient and diversified supply chains
India is looking for new suppliers of rare earths and critical minerals to reduce dependence on current sources. Brazil possesses significant reserves of niobium, nickel and manganese, all of which are essential for steelmaking.
"Increasing investments and cooperation in renewable energy and critical minerals is at the core of the pioneering agreement," said Lula. The partnership will support the development of mineral resources required for steel production, strengthening the resilience of the supply chain.
