Brazil Partnership with India: As Brazilian President Luiz Inacio Lula da Silva visits Delhi and prepares to assume the G20 Presidency from Indian Prime Minister Narendra Modi, their engagement signifies a strengthening of ties on the international stage. On the second day of the G20 Summit in New Delhi, the two leaders will meet and discuss a variety of issues, including trade, defence, ISA (International Solar Alliance), energy and food security, and oceanography.
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Brazil Partnership with India
The significance of President Lula’s visit to India is underscored by the expanding alignment between Brazil and India in international forums such as G20, BRICS, and IBSA. These forums facilitate the discussion of global issues and the promotion of mutual interests. In June of 2003, the Foreign Ministers of India, Brazil, and South Africa established the “India-Brazil-South Africa (IBSA) Dialogue Forum,” also known as the G-3.
This is not the Brazilian leader’s first visit. He has previously visited India on two occasions: in 2004 for four days as the principal guest at Republic Day celebrations and in 2007 for a State visit. During both visits, President Lula was accompanied by a large business delegation comprised of over one hundred Brazilian company representatives.
Collaboration in Defence
Cooperation in the defence industry is one of the most notable aspects of the developing Brazil-India relationship. Brazil’s pursuit of cutting-edge military capabilities has resulted in a strategic partnership with India.
Ahead of the bilateral meeting between the two leaders, two large 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, commander of the Brazilian Army, visited India and expressed a strong desire to acquire cutting-edge surface-to-air Akash missile systems. These missiles, manufactured by Bharat Electronics Ltd (BEL) and Bharat Dynamics Ltd, represent the bleeding edge of air defence technology.
At the LAAD DefExpo in Rio, Brazil, high-level discussions between Brazilian army officials and Indian defence corporations underscored Brazil’s commitment to enhancing its defence infrastructure. During a joint exercise in Rajasthan’s Pokhran, General Paiva observed a demonstration of Indian-made weapons, demonstrating his support for India’s self-reliance initiative.
Brazil’s defence interests extend beyond the Akash missile system to the acquisition of 155 mm Howitzer weapons. Indian enterprises, such as Bharat Forge, have responded to Brazil’s Request for Proposals (RfP), indicating a promising collaboration opportunity. In addition, Brazil is examining the possibility of developing a self-propelled wheeled artillery system, which demonstrates its comprehensive approach to modernising its military capabilities.
Energy Security: Imports of Crude from Brazil
India’s crude oil sources have been diversified due to the ongoing Russia-Ukraine conflict and global energy supply concerns. Indian Oil and Petrobras (Petroleo Brasileiro SA) have inked an agreement to purchase Brazilian crude for the first time. Given the sanctions imposed on Russian trade, this strategic move seeks to decrease reliance on Russian energy sources.
In addition, Bharat Petroleum Corporation Limited (BPCL) and Petrobras have signed a Memorandum of Understanding (MoU) expressing their intent to establish a long-term cooperation that includes term purchase agreements.Hindustan Petroleum Corporation Limited (HPCL) has also expressed interest in comparable trade arrangements with Brazilian firms. These initiatives demonstrate India’s proactive approach to securing its energy requirements from a variety of sources.
Economic Relations and Investment Prospects
India and Brazil’s economic relationship continues to flourish, with bilateral trade reaching remarkable levels. The nations’ bilateral trade exceeded $9 billion, demonstrating their economic interdependence. Combined with opportunities in the Exploration and Production (E&P) industry, Indian investments in Brazil offer significant potential for future collaboration.
Brazil has expressed gratitude for Indian companies’ investments in their country, including a recent $1.6 billion investment announcement evolving Brazil partnership with India. In addition, a Final Investment Decision (FID) for the BM-SEAL-11 & BM-SEAL-4 Concession is imminent. Following government initiatives to liberalise the investment regime and streamline data sharing with potential participants, India has also presented investment opportunities in the E&P sector.
India welcomes collaborations with Brazilian companies, particularly in offshore deep/ultra-deep-water initiatives in India and other nations. This demonstrates the extent of economic cooperation and the potential for future collaborations.