India and Brazil Plan to Expand PTA: Eyeing $20 Billion Trade Target

India and Brazil are set to strengthen their economic partnership by expanding their existing Preferential Trade Agreement (PTA) under the Mercosur bloc. 

The 2 nations are now targeting a bilateral trade value of $20 billion by 2030, a sharp rise from $12 billion recorded in 2024, reflecting a growing synergy in trade and investment priorities.

India–Brazil Push for Deeper Trade Cooperation

The latest discussions between India’s Commerce and Industry Minister Piyush Goyal and Brazil’s Vice President and Minister of Development, Industry, Trade and Services Geraldo Alckmin, held on 16 October 2025 in New Delhi, marked a new chapter in bilateral trade relations. The meeting focused on broadening the scope of the India–Mercosur PTA to unlock greater trade potential between both economies.

According to the Indian Commerce Department, both sides “welcomed the interest of India and the Mercosur member states in deepening their existing Preferential Trade Agreement with a view to promoting trade and investment between the Parties.” The Brazilian delegation also committed to working with its Mercosur partners to ensure a “substantial, swift, and mutually beneficial deepening of the agreement.”

Trade Trends and Investment Opportunities

India’s exports to Brazil have surged by over 30 % in 2025, signalling renewed momentum in trade. The existing PTA, signed in January 2004 and effective from June 2009, grants tariff concessions on 450 Indian tariff lines and 452 Mercosur lines, with reductions ranging from 10 % to 100 %.

The Vice President also invited Indian companies to invest in sectors such as automotive, IT, clean energy, healthcare, aerospace, agriculture, semiconductors, and digital innovation. He further announced plans for a new Brazil–India Digital Partnership focused on AI, high-performance computing, and tech start-ups, calling it “a driving force for the new green and digital economy, creating more jobs and technological sovereignty.”

Read More: India and Saudi Arabia To Expand Cooperation in Chemicals and Petrochemicals Sector!

Conclusion

The India–Brazil dialogue signals a decisive step toward a stronger, future-ready trade relationship, setting the stage for the two nations to surpass the $20 billion trade milestone by 2030 under an enhanced and mutually beneficial PTA framework.

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