Trump tariffs loom as Brics meets in Rio; PM Modi bats for Indian pharma

Business Standard

2 days ago

After visits to Ghana, Trinidad & Tobago and Argentina, where he sought greater access for India's pharmaceutical sector and discussed increased cooperation in exploration, processing and supply of critical minerals, Prime Minister Narendra Modi landed in Rio de Janeiro early Sunday morning (India time) to attend the two-day Brics Summit.
The Brics Summit, which will conclude on Monday, is set to discuss issues like Israel's attack on Iran, the humanitarian crisis in Gaza, and trade tariffs imposed by US President Donald Trump. Not all the members of the grouping are on the same page on some of these topics.
India, for example, has a nuanced position on the Iran-Israel conflict. Sources said some of the other member countries want more aggressive language on the situation in Gaza and Israel's attack on Iran. Tehran joined Brics in 2024, along with Egypt, Ethiopia and the United Arab Emirates (UAE), with Indonesia becoming a member in 2025.
A Bloomberg report on Saturday said that, according to the draft statement it had accessed, the Brics leaders have agreed to voice 'serious concerns' about the rise of unilateral tariff and non-tariff measures 'which distort trade and are inconsistent with WTO rules'. They have also agreed to 'condemn the imposition of unilateral coercive measures that are contrary to international law', specifically economic sanctions. However, the final wording of the concluding communiqué could still change, the report said. The draft statement does not directly mention the US.
PM bats for India's pharma sector in Argentina and T&T
The PM, on a five-nation tour spanning eight days—his longest in a decade—concluded his bilateral visit to Argentina, the first by an Indian PM in 57 years, on Saturday evening. Modi and Argentine President Javier Milei agreed to enhance bilateral cooperation in several sectors, including critical minerals, oil and gas, defence, nuclear energy, pharmaceuticals and space.
Modi sought diversification of the trade basket between the two countries, and in this context, the two discussed expansion of the India-MERCOSUR Preferential Trade Agreement (PTA), officials said. The PM requested Argentina's support in expanding the India-MERCOSUR PTA, P Kumaran, Secretary (East) in the Ministry of External Affairs (MEA), said in Buenos Aires. The PTA is aimed at expanding economic ties between India and the MERCOSUR bloc that includes Argentina, Brazil, Paraguay, and Uruguay.
India-Argentina bilateral trade has been on an upswing. The trade volume more than doubled in three years from 2019 to 2022, peaking at $6.4 billion in 2022. In 2021 and 2022, India was Argentina's fourth-largest trading partner. In 2024, total annual bilateral trade between India and Argentina was $5.23 billion, positioning India as Argentina's fifth-largest trading partner and export destination.
The PM discussed the possibility of India being moved from Annex II to Annex I of Argentina's pharmaceutical regulatory framework, which would facilitate smoother entry of Indian pharmaceutical products into the Argentine market. The Argentine side informed the Indian delegation of the fast-track approval process available for import of Indian medicines into Argentina, especially those medicines that had US Food and Drug Administration (FDA) or European Medical Authority (EMA) clearances. 'We have a separate dialogue ongoing on how we would like to move from category two to category one or Annex II to Annex I. For that, there are still some process compliances required. But wherever we have FDA or EMA approval, we were told that the medicines can come directly into Argentina,' Kumaran said.
Modi and Milei also discussed cooperation in the energy and critical mineral sectors. Argentina possesses the world's second-largest shale gas and fourth-largest shale oil reserves, along with substantial conventional oil and gas deposits. Argentina's rich reserves of critical minerals, including lithium, copper, and rare earth elements, align with India's need for secure and sustainable resources to drive its clean energy transition and industrial growth, Kumaran said.
On energy investments, there is a Memorandum of Understanding (MoU) between YPF Energia Argentina and India's Indian Oil Corporation and Bharat Petroleum Corporation Limited. Kumaran said India is seeking concessions on oil exploration and oil production. 'So, this is an ongoing dialogue. We hope to be able to reach some conclusion and our investments can start in such a way that we can also enter production sharing agreements or in any other format that Argentina would like,' the MEA official said. An MoU on cooperation in the field of mineral resources was signed in August 2022. The first meeting of the joint working group set up under the framework of the MoU was held in January.
On critical minerals, Argentina is part of the lithium triangle along with Chile and Bolivia. 'It is of great interest to us,' Kumaran said. Coal India Limited and Khanij Bidesh India Limited, or KABIL, have signed five concession agreements, and are working on how to finalise investments and how to work out the implementation of the investments in such a way that minerals can be produced in Argentina, refined, and taken to India for various purposes, Kumaran said. Two private sector companies, including Greenco and another Indian-owned company based in the UAE called World Metal Alloys, have also invested in lithium concessions in Argentina, he said.
'Hopefully, we will have more cooperation coming in the coming years,' Kumaran said.
Officials said the Argentine President showed a lot of interest in the applications that India uses drones for, especially for agriculture, animal husbandry, and monitoring transmission lines. 'He absorbed a lot of the uses that we have for drones in India very keenly and said he would like to understand more,' Kumaran said. A big Argentine business delegation will be going to India in the next couple of months, and will interact with start-up founders in India and find ways to use drones for various purposes, Kumaran said.
The Indian delegation also pitched to assist Argentina in maintenance, repair, and overhauling of helicopters. Argentina has a fleet of helicopters. The India-Argentina relationship was elevated to a strategic partnership during the visit to India of the then Argentine President Mauricio Macri in February 2019.
At the conclusion of the PM's visit to Trinidad & Tobago on Saturday, the two sides signed several MoUs, including one for greater cooperation on Indian Pharmacopoeia. The PM announced extension of the Overseas Citizenship of India (OCI) card facility up to the sixth generation of Indian diaspora members in T&T. Earlier, this facility was available up to the fourth generation. Modi said closer collaboration in the pharmaceutical sector would help with improved access for the people of T&T to quality and affordable generic medicines from India, as well as provision of medical treatment in India.