India and Brazil Revitalize Ties: A Bold Push to Expand the MERCOSUR Trade Pact

In a move set to redefine South–South economic cooperation, India and Brazil have agreed to significantly broaden their existing trade framework under the MERCOSUR bloc, aiming to unlock new opportunities in trade and investment. The understanding was reached on 16 October 2025 in New Delhi, during a meeting between India’s Commerce and Industry Minister Piyush Goyal and Brazil’s Vice President and Minister of Development, Industry, Trade and Services Geraldo Alckmin.

Expanding the MERCOSUR Partnership

Both leaders reaffirmed their mutual interest in deepening the Preferential Trade Agreement (PTA) between India and MERCOSUR — which currently includes Brazil, Argentina, Uruguay, and Paraguay. Revisiting the Framework Agreement of 2003, they agreed to launch a structured dialogue to widen the scope of the pact, making it more comprehensive and future-ready.

The upcoming negotiations will focus on expanding tariff concessions, promoting services trade, and encouraging investment in key sectors such as energy, agriculture, technology, and digital innovation. A technical working group will be formed to chart the course for these discussions, with both sides targeting completion within a year.

Ambitious Goals and Shared Vision

Setting a clear benchmark, India and Brazil announced a USD 20 billion trade target by 2030, up from around USD 12 billion in 2024. Minister Goyal described the partnership as a bridge between Asia and Latin America, while Vice President Alckmin called India and Brazil “complementary economies with limitless potential.”

For India, this expansion opens the door to a larger Latin American market through the MERCOSUR platform. For Brazil, it strengthens ties with one of the fastest-growing major economies, paving the way for joint growth in innovation, green energy, and industrial cooperation.

A New Chapter in South–South Cooperation

The renewed focus on MERCOSUR signals a strategic evolution in India–Brazil relations. It goes beyond trade — aiming to create a comprehensive economic partnership that enhances connectivity, fosters sustainable development, and amplifies the voice of the Global South on the world stage.

If these plans translate into action, the India–MERCOSUR expansion could emerge as a cornerstone of intercontinental cooperation — connecting the dynamism of Asia with the promise of South America in a shared pursuit of prosperity.