India Seeks to Expand Mercosur Trade Pact for Enhanced Market Access and Investment Opportunities, Says Piyush Goyal
India is intensifying its efforts to enhance trade relations with the Mercosur bloc, which includes Brazil, Argentina, Uruguay, and Paraguay. Commerce and Industry Minister Piyush Goyal announced plans to expand the existing preferential trade agreement during the India-Brazil Business Forum. This initiative aims to deepen market access, foster investment, and strengthen partnerships across various sectors, signaling a renewed commitment to economic engagement with Latin America.
Expanding Trade Agreements
Minister Goyal emphasized the importance of the Mercosur region for India, stating that the country is actively working to broaden the scope of the India-Mercosur preferential trade agreement. Currently, this agreement, which took effect on June 1, 2009, covers only about 450 tariff lines. Both India and Mercosur are exploring ways to transform this limited framework into a more comprehensive arrangement that facilitates greater trade and investment. Goyal noted that while trade momentum between India and Brazil has improved, it still falls short of its full potential. He highlighted that bilateral trade has increased by 25 percent, surpassing $15 billion in 2025, but expressed the need for more ambitious targets.
Strategic Partnerships Across Sectors
The minister outlined the expanding cooperation between India and Brazil, which now encompasses a wide range of sectors, including defense, energy, agriculture, health, and renewable energy. He invited Brazilian companies to increase their investments in India, underscoring the strategic partnership that both nations share. Goyal pointed out that India is on track to become the world’s third-largest economy within the next two years, driven by reforms in various sectors such as taxation, logistics, and digital infrastructure. He also mentioned Brazil’s rich natural resources, including critical minerals essential for technological advancements and energy transitions, further solidifying Brazil’s role as a key partner in global supply chains.
Future Trade Goals and Collaborations
During the forum, Brazilian President Luiz Inacio Lula da Silva echoed the sentiment of significant trade expansion potential between the two countries. He noted that while the current growth is promising, it remains modest considering the sizes of Brazil and India. Both leaders have set an ambitious target of achieving $20 billion in annual bilateral trade within five years, with aspirations to eventually reach $30 billion. Lula highlighted the importance of extending visa validity for business interns to bolster collaboration and pointed out Brazil’s expertise in bioenergy, particularly in ethanol and fuel technologies.
Strengthening Economic Ties
The discussions also led to the signing of a cooperation pact on critical minerals, which aims to enhance technology transfer and industrial cooperation between the two nations. Lula expressed Brazil’s intention to increase both exports to and imports from India while focusing on building capacity through technology transfer. He mentioned a significant agreement involving Embraer and Indian companies like Adani and Mahindra, which will facilitate the production of commercial and defense aircraft in India. Both countries have identified clean energy, electric mobility, health, aerospace, semiconductors, and digital innovation as key sectors for future collaboration, paving the way for a robust economic partnership.
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