India and Brazil to Expand Preferential Trade Agreement
India and Brazil have agreed to significantly expand their existing Preferential Trade Agreement (PTA) during high-level talks in New Delhi, targeting completion of negotiations within one year.
Key Developments
- Bilateral trade reached $12 billion in 2024
- Indian exports to Brazil grew over 30% this year
- Target to exceed $20 billion in foreign trade by 2030
- Focus on reducing tariff and non-tariff barriers
The expansion will be negotiated through the Joint Administration Committee under the existing PTA framework, which was originally signed on June 17, 2003, between India and MERCOSUR – the South American trade bloc comprising Brazil, Argentina, Paraguay, and Uruguay.
Strengthening Economic Partnership
Brazilian Vice-President and Minister of Development, Industry, Trade and Services Geraldo Alckmin and Indian Commerce and Industry Minister Piyush Goyal expressed strong mutual commitment to enhancing trade and investment ties.
Alckmin affirmed Brazil’s coordination with MERCOSUR partners to ensure a swift and beneficial agreement, stating: “This year, exports from India to Brazil grew over 30 per cent, and exports from Brazil are also growing. We will overcome the foreign trade target of $20 billion by 2030. Both countries do not compete but complement each other. Brazil is opening its doors to Indian investment.”
During the India-Brazil Business Dialogue, Minister Goyal highlighted India’s strong economic growth and the countries’ shared agricultural strengths as leading producers contributing to global food security.
