
As PM Modi visits Brazil, 3 things to know about India's ties with the country
According to the Ministry of External Affairs (MEA), the PM will travel to the capital city, Brasilia, where he will hold bilateral discussions with President Luiz Inácio Lula da Silva on broadening the Strategic Partnership in areas of mutual interest, including trade, defence, energy, space, technology, agriculture, and health.
Here are some key things to know about the India-Brazil bilateral relationship.
1. Despite the distance, the countries have had contact since colonial times.
A Portuguese explorer, Pedro Alvares Cabral, landed on the East Coast of Brazil in 1500, two years after Vasco de Gama had landed in India. Cabral's visit would mark the beginning of more than three centuries of colonial rule in Brazil, while the Portuguese rule in Goa would last for more than 450 years.
Being outposts of the Portuguese imperialist empire, Goa and Brazil had trade exchanges and cultural similarities. During this period, coconut and mango crops arrived in Brazil from India for the first time, while Brazil sent cashew nuts here. Apart from this, Indian cattle breeds were also exported to Brazil, which has now formed over 80% of the country's livestock, known as 'Nelore' locally (after Nellore in Andhra Pradesh).
Modern-day diplomatic ties between India and Brazil were established in 1948, soon after India gained independence in 1947. In 1961, Brazil opposed India's 'Operation Vijay' that liberated Goa from Portuguese rule, and Indo-Brazil relations did not flourish for many decades.
However, in the 1990s, both India and Brazil undertook economic reforms, following which, the trade relations between the two countries expanded. According to the MEA, in 2024-25, bilateral trade reached $12.20 billion, with Indian exports to Brazil amounting to $6.77 billion and imports from Brazil totalling $5.43 billion.
Major Indian exports to Brazil include processed petroleum products (diesel), agrochemicals (insecticides, fungicides), chemicals, pharmaceuticals, engineering products, textured filament yarn, and unwrought aluminium. Brazilian exports to India included crude oil, soya oil, gold (non-monetary), raw sugar, cotton, gum, wood and turpentine oils, chemicals (carboxylic acids) and iron ore and concentrates.
Today, about 4,000 Indians live in Brazil. Most major Indian IT and pharmaceutical companies have their offices in São Paulo. Additionally, companies like the Aditya Birla Group and Sterlite have offices in the country.
As strategic partners, India and Brazil have several institutional mechanisms to coordinate various aspects of their bilateral relationship. This includes the Joint Commission Meeting (JCM at Foreign Minister level) and the Strategic Dialogue (between National Security Advisers). A 2+2 Political-Military dialogue was initiated, which had its first meeting in 2024.
Both Brazil and India are members of plurinational forums like BRICS, G-20, G-4, International Solar Alliance, and Biofuture Platform. In recent years, both emerging economies have sought greater space for the Global South nations on the world stage.
However, Brazil's GDP growth rates have slowed in the last decade or so, with several state corruption scandals emerging. In 2017, Brazil's Senate voted to remove then-President Dilma Rousseff from office for manipulating the budget, removing her left-wing Workers' Party from power after 13 years.
Even before her ouster, she was massively unpopular owing to rising inflation and unemployment, as well as a major corruption scandal at state-run oil giant Petrobras. It came just a few months before Rio was scheduled to host the 2016 Olympics, which marked the first time the games were held in South America.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Time of India
27 minutes ago
- Time of India
Rupee weakens by 46 paise to close at 85.85/$
Mumbai: The Indian currency weakened nearly half a rupee to close at 85.85 per dollar on Monday, from its previous close of 85.39/$1 as uncertainty about US tariff policies resurfaced with President Donald Trump's threat of an additional 10% levy on Brics countries. The rupee opened at 85.57/$1, and weakened till 86.03/$1 on Monday, before pairing its losses and closing at 85.85/$1, likely due to intervention by the Reserve Bank, traders said. "Markets were expecting something on the trade deal with the US, but nothing came up, and the BRICS statement deteriorated sentiments. We were the second worst performing currency in Asia, and due to potential RBI intervention, we erased some losses and to be the third worst-performing Asian currency," said Dilip Parmar, currency research analyst at HDFC Securities. Japanese Yen and the Thai baht were the two worst performing Asian currencies. Traders expect the rupee to move in the range of 85.50/$1 to 86.25/$1 on Tuesday, ahead of July 9, when Trump will unveil his new stand on tariffs. In a social media post, President Donald Trump stated a new tariff policy, calling for countries "aligning themselves with the Anti-American policies" of the BRICS developing nations to be charged an extra 10% tariff, with no exceptions to be granted. India, along with Brazil, China, Russia, South Africa are part of BRICS. The dollar index gained slightly at 97.6, from 96.9 previously. "The BRICS comment has put the India-US deal in jeopardy and we are awaiting clarifications from India-US on the matter. The rupee has fallen as the market is not expecting the deal to be done soon," said Anil Bhansali, head of treasury at Finrex Treasury Advisors.


Time of India
31 minutes ago
- Time of India
Indian stock valuations trading above average, but no overheating yet: Motilal Oswal Financial Services
Valuations of Indian equities are trading above their long-term averages, indicating stocks are far from cheap at current levels. The Nifty is trading at an estimated Price to Earnings (PE) ratio of 21.7 times, above its averages for five, ten and fifteen years, according to Motilal Oswal Financial Services . The price-to-book multiple for the Nifty stands at 3 times, compared to a decade average of 2.7 times, it said. 'While valuations have crept above long-term averages, we do not consider it to be in the overheated zone,' said the brokerage's note. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Amazing Moments Captured in Perfectly Timed Photos Read More Undo The Nifty's PE ratio in September 2024, when the indices hit their peaks, was at 23-24 times. The market capitalisation-to-GDP ratio, a broad indicator of overall market valuations, is estimated at 127% for FY26, above the historical average of 87%. Agencies The measure, also known as the Buffett indicator after Warren Buffett, is down from a peak of 146% in September. The PE ratios of mid-cap and smallcap indices show their valuations are at a premium to the large-cap stocks. Motilal Oswal's head of institutional research Gautam Duggad said the firm is raising allocation to midcaps, citing superior growth. The brokerage prefers a blend of large- and mid-caps.


Time of India
31 minutes ago
- Time of India
Foxconn feels the China squeeze in India
Synopsis Fokskon is recalling Chinese engineers from its Indian iPhone plants. This move may affect operations. Indian electronics firms worry about machinery access. China's potential equipment curbs could hinder expansion plans. Smaller companies may face challenges due to reliance on Chinese equipment. The industry hopes for continued government support amid geopolitical tensions. Some experts believe the impact will be minimal.