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Business Standard
08-07-2025
- Business
- Business Standard
India and Brazil set to sign key agreements to boost bilateral trade
India and Brazil, both wary of the tariffs that US President Donald Trump has threatened to impose and looking beyond America for markets for their respective produce, are set to sign almost half a dozen agreements aimed at increasing their bilateral trade during Prime Minister Narendra Modi's meeting with Brazilian President Luiz Inácio Lula da Silva. India's trade with Brazil is the largest compared to its trade with any other country in Latin America. However, it remains far below Brazil's trade with China, the US, Argentina, and Germany. India-Brazil bilateral trade reached $16.6 billion in 2022-23, but following the drop in oil and gas prices, it is now around $12.2 billion. India enjoys a trade surplus, exporting goods worth $6.7 billion to Brazil and importing goods worth $5.4 billion. Modi and Lula had set a bilateral trade target of $20 billion during their last meeting in November 2024. Brazil is looking to diversify its exports to India beyond sugar and crude oil, which currently dominate sales. Earlier this year, Brazil's Embraer SA, the world's third-largest aircraft manufacturer, set up a subsidiary in India. Brazil is also seeking to expand its market for agricultural and dairy products in India. At a recent event, Lula observed that he only recently discovered that Modi, a devout Hindu, didn't eat meat. Brazil is the world's top beef exporter. 'Our trade relationship is just $12 billion, it's nothing,' Lula said. 'So please, arrange a box of cheese. I want it on the table so he never complains about Brazilian food and, who knows, maybe he'll start buying Brazilian cheese.' Hours before he met the Indian PM in Brasilia for a bilateral meeting on Tuesday evening (India time), Lula joined his South African counterpart Cyril Ramaphosa in criticising Trump for his threat to impose extra tariffs on BRICS member countries. On the final day of the two-day BRICS Summit, which Brazil had hosted, Lula said the US president was 'irresponsible for threatening tariffs on social media.' He also called on world leaders to find ways to reduce international trade's reliance on the dollar. Earlier, South African President Ramaphosa was the first among the BRICS leaders to criticise Trump for his comments, where the US president had warned BRICS members of 10 percent additional tariffs for adopting policies he claimed were 'anti-American.' In their Rio de Janeiro declaration, BRICS members expressed 'serious concerns' over tariffs, condemned soaring defence spending, and denounced airstrikes on BRICS member Iran. However, the group did not mention the US by name. The grouping also tasked its finance ministers and central bank governors to continue discussions on the BRICS Cross-Border Payments Initiative and appreciated the progress made by the BRICS Payment Task Force (BPTF) in identifying possible pathways to support greater interoperability of BRICS payment systems. The effort is aimed at reducing the dominance of the US dollar in international trade. Brazil is also keen to increase its sesame exports to India, which have grown significantly since the Indian market opened to Brazil in 2020. It is also eyeing expanded ethanol exports. In Brasilia, the two countries are expected to sign deals on renewable energy, counterterrorism, cooperation in agricultural research, and agree on a framework to protect confidential information. India is looking to increase its cooperation with Brazil in oil and gas, mining and critical minerals, defence, and security. The two leaders are expected to discuss ways to strengthen and diversify bilateral trade, including through the expansion of the India-MERCOSUR Preferential Trade Agreement, as Brazil assumes the chairship of MERCOSUR from July 1, 2025.
Time of India
07-07-2025
- Business
- Time of India
Leaders explore BRICS pay systems even as don warns
BRICS nations are actively pursuing the development of a cross-border payments system to facilitate faster, cheaper, and more efficient transactions. Finance ministers and central bank governors are tasked with exploring interoperability, building upon the progress of the BRICS Payment Task Force. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads BRICS countries will continue discussions on implementing a cross-border payments system, according to a readout of the Leaders Declaration at the BRICS summit in Rio de leaders have designated their finance ministers and central bank governors to continue discussions on the matter, while exploring the potential for greater interoperability of the BRICS payment system."We task our ministers of finance and central bank governors, as appropriate, to continue the discussion on the BRICS Cross-Border Payments Initiative, and acknowledge the progress made by the BRICS Payment Task Force in identifying possible pathways to support the continuation of discussions on the potential for greater interoperability of BRICS payment systems," the declaration read."In this regard, we welcome the 'Technical Report: BRICS Cross-border Payments System', which reflects members' revealed preferences, and should play a pivotal role in our efforts to facilitate fast, low-cost, more accessible, efficient, transparent and safe cross-border payments among BRICS countries and other nations and which can support greater trade and investment flows."Later, briefing the media in Rio on the initiative, Dammu Ravi , India's BRICS Sherpa and secretary (economic relations) in the external affairs ministry, said, "Countries are looking for alternatives. Interoperability payment is a faster mechanism in terms of being able to do cross-border trading. And this is a low-cost solution."Ravi said India has successfully implemented an interoperability payment mechanism and is also entering into bilateral arrangements with many other countries. "So, within the BRICS track, there is a discussion on it. We are hopeful that in the days to come, there will be traction, and countries will accept it, as it is beneficial to most of them," he to trade in national currencies among BRICS member states, he said, "Now you talked about the national currency settlement ... This is to be seen in the same breath. Significant progress has also happened in that context, and all the countries are quite supportive of these initiatives."BRICS leaders also welcomed steady capacity expansion by the New Development Bank (NDB) to mobilise resources, foster innovation, expand local currency financing, diversify funding sources and support impactful projects. The leaders also welcomed the BRICS Interbank Cooperation .
