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New Delhi
India and Brazil have agreed to substantially expand the existing Preferential Trade Agreement (PTA) between India and the Mercosur trade bloc to deepen economic ties and boost bilateral trade. The decision was made during a meeting in New Delhi between Brazilian Vice President Geraldo Alckmin and India’s Commerce and Industry Minister Piyush Goyal. The expansion aims to transform the current PTA—which covers only 450 tariff lines—into a comprehensive agreement addressing both tariff and non-tariff issues for a broader economic partnership. Both sides plan to set up a technical dialogue, including convening the Joint Administration Committee under the PTA, to define the scope of the expansion and strive to conclude negotiations within one year. Mercosur comprises Brazil, Argentina, Uruguay, Paraguay, and Bolivia as a full member.
Bilateral merchandise trade between India and Brazil reached USD 12.19 billion in 2024-25, with ambitions to increase it to USD 20 billion over the next five years. Brazil is India’s largest trading partner in Latin America. Alongside trade expansion, Brazil expressed readiness to launch digital partnerships in artificial intelligence and high-performance computing. The agreement will also encourage active participation of private sector stakeholders to support negotiations and future collaboration in sectors like energy, pharmaceuticals, chemicals, and MSMEs.
This step follows previous efforts by Prime Minister Narendra Modi and Brazilian President Luiz Inacio Lula da Silva to strengthen bilateral trade and signals both countries’ commitment to leveraging the Mercosur bloc’s large integrated market for mutual economic growth. The expansion is expected to unlock wider market access for Indian goods and services in South America, enhancing trade diversification and economic cooperation.
