India, Brazil target USD 20 billion trade in five years - MSME pact signed

India and Brazil on Saturday agreed to expand their economic partnership and work towards raising bilateral trade to over USD 20 billion within the next five years , following wide-ranging talks between Prime Minister Narendra Modi and Brazilian President Luiz Inácio Lula da Silva .

The discussions focused on cooperation in critical minerals, security, and key economic sectors. Modi noted that Brazil remains India’s largest trade partner in Latin America and said stronger engagement would amplify the voice of the Global South. Both leaders also reaffirmed their shared position that terrorism and its supporters pose a threat to humanity.

During President Lula’s ongoing visit, the two countries further strengthened economic cooperation by signing a Memorandum of Understanding (MoU) on Micro, Small and Medium Enterprises (MSMEs) on February 21, 2026. The agreement was signed between India’s Ministry of MSME and Brazil’s Ministry of Entrepreneurship, Micro and Small Enterprises.

The MoU establishes a platform for dialogue on MSME-related issues and aims to identify areas of cooperation for mutual benefit. It will help enterprises in both countries better understand each other’s markets, technologies, policy frameworks and business strengths, while encouraging partnerships and joint ventures.

While the agreement does not specify a fixed monetary value, it is expected to generate significant business opportunities by improving market access, facilitating technology exchange and enabling MSMEs to integrate into global value chains. The pact also promotes the green transition , including improved access to green finance, helping enterprises enhance productivity, competitiveness and sustainable development capacity.

Officials said the MSME cooperation framework will indirectly support the broader goal of expanding bilateral trade by encouraging cross-border investments, exports and enterprise-level collaborations.

The developments signal a renewed push toward deeper economic, strategic and sustainable partnership between India and Brazil.