As Brazil’s President Luiz Inacio Lula da Silva visits Delhi and prepares to take over the G20 Presidency from Indian Prime Minister Modi, their engagement signifies the strengthening of bonds on the global stage. The two leaders will meet on day two of the G20 Summit in New Delhi and will talk about a wide range of topics, including trade, defence, ISA (International Solar Alliance), energy and food security, and oceanography among other issues.
Bilateral Meetings and Shared Agendas
President Lula’s visit to India carries significant weight, as it underscores the growing alignment between Brazil and India in international forums like G20, BRICS, and IBSA. These platforms provide common ground for discussing global issues and promoting mutual interests. In June 2003 the Foreign Ministers of India, Brazil and South Africa launched the “India-Brazil South Africa (IBSA) Dialogue Forum” popularly known as G-3.
This is not the first visit of the Brazilian leader. He has been to India twice previously — for four days Jan 24-28, 2004 and was the chief guest at Republic Day Celebrations and then in 2007 when he came on a State visit. In both the visits President Lula was accompanied by a large business delegation with more than 100 representatives of the Brazilian Companies.
Defence Collaboration Takes Center Stage
One of the most notable aspects of the evolving Brazil-India partnership is their cooperation in the defence sector. Brazil’s quest for advanced military capabilities has led to a strategic collaboration with India.
Ahead of the bilateral meeting between the two leaders, two big high profile defence delegations were Indian in India in the last fortnight and also aerospace major Embraer with a high-level delegation was here.
General Tomas Miguel Mine Ribeiro Paiva, the Brazilian Army Commander, visited India and expressed a keen interest in procuring state-of-the-art surface-to-air Akash missile systems. These missiles, produced by Bharat Electronics Ltd (BEL) and Bharat Dynamics Ltd, represent cutting-edge technology in air defence.
High-level discussions between Brazilian army officials and Indian defence companies at the LAAD DefExpo in Rio, Brazil, further underscored Brazil’s commitment to enhancing its defence infrastructure. General Paiva also witnessed a demonstration of Indian-made weapons during a joint exercise at Rajasthan’s Pokhran, showing support for India’s self-reliance initiative.
Beyond the Akash missile system, Brazil’s defence interests extend to the acquisition of 155 mm Howitzer guns. Indian companies, including Bharat Forge, have responded to Brazil’s Request for Proposals (RfP), indicating a promising avenue for collaboration. Additionally, Brazil is exploring the development of a self-propelled wheeled artillery system, reflecting its comprehensive approach to modernizing its military capabilities.
Energy Security: Crude Imports from Brazil
The ongoing Russia-Ukraine conflict and global energy supply concerns have prompted India to diversify its sources of crude oil. For the first time, Indian Oil and Petrobras (Brazil’s Petroleo Brasileiro SA) have signed an agreement to source Brazilian crude. This strategic move aims to reduce dependence on Russian energy sources, given the sanctions imposed on Russian trade.
Furthermore, Bharat Petroleum Corporation Limited (BPCL) has entered into a Memorandum of Understanding (MoU) with Petrobras, expressing their intent to establish a long-term cooperation that includes term purchase arrangements. Hindustan Petroleum Corporation Limited (HPCL) has also expressed interest in similar trade arrangements with Brazilian companies. These initiatives reflect India’s proactive approach to securing its energy needs through diversified sources.
Economic Ties and Investment Opportunities
The economic relationship between India and Brazil continues to flourish, with bilateral trade reaching remarkable figures. The two-way trade between the nations surpassed US$9 billion, indicating their economic interdependence. Indian investments in Brazil, coupled with opportunities in the Exploration and Production (E&P) sector, offer significant potential for further collaboration.
Brazil has expressed appreciation for Indian companies investing in their country, including a recent announcement of $1.6 billion. Furthermore, a Final Investment Decision (FID) for BM-SEAL-11 & BM-SEAL-4 Concession is expected soon. India has also presented investment opportunities in the E&P sector following government initiatives to liberalize the investment regime and streamline data sharing with prospective players.
India is open to collaborations with Brazilian companies, especially in offshore deep/ultra-deep-water projects, in both India and third countries. This signifies the depth of economic cooperation and the potential for future ventures.
