New Delhi, Feb 21 (PTI) India and Brazil on Saturday set an annual bilateral trade target of USD 30 billion by 2030 and signed a key pact for cooperation in critical minerals with Prime Minister Narendra Modi and Brazil's President Luiz Inacio Lula da Silva resolving to ramp up boost bilateral ties and jointly navigate the geopolitical turbulence.

In their wide-ranging talks, Modi and Lula also discussed implications of US Supreme Court striking down President Donald Trump's reciprocal tariffs.

Following wide-ranging talks between Modi and Lula, the two sides signed nine pacts including one on cooperation in areas of rare earth minerals and another on forging a futuristic digital partnership.

Secretary (East) in the Ministry of External Affairs P Kumaran said at a media briefing that there was a discussion between the two sides on US trade policy and the implications of the US Supreme Court judgement.

"Both leaders agreed that it is a rather new development that both sides need to study its implications and wait for further developments by the US administration," he said.

"We will be essentially in wait and watch mode on how the administration responds to this judgement and whether any further steps are taken and to study the implications for our trade," he said.

US President Donald Trump has imposed a new 10 per cent global tariff after the US Supreme Court struck down the reciprocal tariffs.

Kumaran said Modi and Lula agreed that the bilateral trade should be doubled to USD 30 billion by 2030.

In their talks, the two leaders vowed to shore up bilateral ties in a range of other sectors including defence, energy, healthcare and digital public infrastructure while emphasising on deeper India-Brazil strategic engagement to navigate the fragmented geopolitical environment.

Modi said India and Brazil are unanimous that terrorism and its supporters are "enemies" of humanity even as he noted that both sides agreed that reform of global institutions is essential to address the challenges facing the world.

Lula is in India on a five-day visit from February 18 primarily to attend the AI Impact Summit and hold talks with Modi.

"Brazil is India's largest trading partner in Latin America. We are committed to taking bilateral trade beyond USD 20 billion in the next five years. Our trade is not just a figure, it's a reflection of trust," Modi said in his media statement in presence of the Brazilian leader.

In 2024-25, India-Brazil trade volume reached USD 12 billion, with Indian exports amounting to USD 6.77 billion and imports from Brazil totaling USD 5.43 billion.

In July last year, Modi and Lula had set a bilateral trade target of USD 20 billion by 2030. Kumaran said the two leaders "agreed that the trade should at least double to USD 30 billion by 2030".

The prime minister said the agreement on critical minerals and rare earth is a major step towards building resilient supply chains.

Besides the pact on critical minerals, India and Brazil also firmed up a joint declaration on digital partnership, and signed Memoranda of Understanding (MoUs) for cooperation in areas of mining, MSMEs, health-care and traditional knowledge system.

"Our cooperation in the field of defence is also continuously growing. This is a great example of mutual trust and strategic coordination. We will continue to strengthen this win-win partnership," he said.

In the context of enhancing defence ties, the two sides discussed cooperation for maintenance of their French-origin Scorpene submarines under a tripartite agreement between Mazagon Dock Shipbuilders Limited and the Indian and Brazilian Navies.

Brazilian aerospace major Embraer's plan to set up an assembly line for its E175 regional jet in India also found mention in the discussions. The Indian side also called for establishment of a maintenance, repair and overhaul (MRO) facility in India by Embraer.

In his remarks, the prime minister noted that the voice of the Global South becomes stronger and more confident when India and Brazil work together.

"The India-Brazil partnership on the global stage has been strong and influential. As democratic countries, we will continue to advance the priorities and aspirations of the Global South," he said.

"We believe that every problem must be resolved through dialogue and diplomacy. India and Brazil are unanimous that terrorism and its supporters are enemies of all humanity," he said.

In his remarks, President Lula slammed terror attacks in Kashmir, and said terrorism must not be linked to any religion or nationality.

He said that the "turbulent global environment" requires India and Brazil to deepen our strategic ties and that dialogue between the two powers is an engagement of "superlatives".

"We are not just the two biggest democracies of the Global South. This is a meeting of a digital superpower with a renewable energy superpower. We are both mega diverse countries and we both defend multilateralism and peace," he said.

The Brazilian leader argued that there is no possibility of a fair and sustainable development in a conflict-ridden world and quoted PM Modi's remarks at last year's BRICS summit that one can't run "21st-century software on 20th-century typewriters." "We emphasised our commitment to the UN reform, particularly of the UN Security Council so that it represents the interests of the Global South. Brazil and India are natural candidates to become permanent members of the Security Council," he said.

Modi and Lula unequivocally condemned terrorism and violent extremism, in all its forms including cross-border terrorism and called for decisive and concerted international efforts to combat terrorism in a comprehensive and sustained manner.

In his media statement, Modi said India-Brazil relations have long benefited from President Lula's vision and that his visit has given new energy to the strategic partnership between the two nations.

Modi and Lula also discussed the expansion of the India-Mercosur preferential trade agreement (PTA). The prime minister said it will deepen economic cooperation.

"Our cooperation in technology and innovation is important for both countries, as well as for the entire Global South. I am pleased that we are working on establishing a Centre of Excellence for Digital Public Infrastructure in Brazil," Modi said.

"We are also prioritizing our cooperation in areas such as Artificial Intelligence, supercomputers, semiconductors, and blockchain. We both believe that technology must be inclusive and it must become a bridge for shared progress," he said.

The prime minister described India-Brazil energy cooperation as a strong pillar of the relationship.

"Along with hydrocarbons, we are also accelerating cooperation in many areas such as renewable energy, ethanol blending, sustainable aviation fuel. Brazil's active participation in the "Global Biofuel Alliance" reflects our shared commitment to a green future," he said.

In the talks, Brazil also proposed to co-chair the India-backed Coalition for Disaster Resilient Infrastructure (CDRI).

"I congratulate President Lula for this initiative. Brazil's extensive experience in this field will significantly contribute to further strengthening the CDRI," Modi said. PTI MPB ZMN

Reciprocal tariffs: leaders agree to study implications and adopt a wait-and-watch approach while boosting strategic trade ties. Discussion focused on the trade-policy implications of a major US decision affecting reciprocal tariffs, with both leaders adopting a 'wait-and-watch' posture to study potential US administrative responses. Parallel measures included a pact on critical minerals to build resilient supply chains, a joint digital partnership declaration, and multiple MoUs covering mining, MSMEs, healthcare, defence maintenance cooperation, and technology and energy collaboration.