India and Brazil signed a mining pact to expand cooperation in mining and minerals
The agreement aims to improve India's access to raw materials needed for steel production
Modi set a target of increasing bilateral trade to $20 billion within five years
Brazil is India's largest trading partner in Latin America and the Caribbean
📖 Full Retelling
India and Brazil signed a mining cooperation pact in New Delhi on Saturday, February 21, 2026, as Prime Minister Narendra Modi and Brazilian President Luiz Inacio Lula da Silva deepened trade ties to meet India's rising steel demand amid a global race for raw materials. The agreement, signed during Lula's three-day visit to India, focuses on expanding cooperation in mining and minerals, particularly as Brazil is among the world's top producers of iron ore and holds significant reserves critical to steelmaking. According to an Indian government statement, closer cooperation between the two nations is expected to improve India's access to essential raw materials and technologies needed to sustain long-term growth in its steel sector. The partnership will specifically target attracting investment in exploration, mining operations, and steel sector infrastructure, addressing India's current steelmaking capacity of 218 million metric tons with companies expanding output to meet growing domestic demand driven by infrastructure development and industrialization. Addressing a meeting with the Brazilian delegation, Modi emphasized their commitment to taking bilateral trade beyond $20 billion in the next five years, with current trade standing at approximately $15 billion between the two countries.
🏷️ Themes
Trade cooperation, Raw materials access, Strategic partnership
Steelmaking is the process of producing steel from iron ore and/or scrap. Steel has been made for millennia, and was commercialized on a massive scale in the 1850s and 1860s, using the Bessemer and Siemens-Martin processes.
Currently, two major commercial processes are used.
Basic material that is used to produce other things
A raw material, also known as a feedstock, unprocessed material, or primary commodity, is a basic material that is used to produce goods, finished goods, energy, or intermediate materials/Intermediate goods that are feedstock for future finished products. As feedstock, the term connotes these materi...
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Deep Analysis
Why It Matters
India and Brazil's mining pact strengthens supply chains for steel, supporting India's infrastructure boom and Brazil's export growth. The agreement also signals a strategic shift toward raw material cooperation amid global competition for minerals.
Context & Background
India's steel sector is expanding to meet infrastructure demand
Brazil is a top producer of iron ore and critical minerals
The pact includes investment in exploration, mining and steel infrastructure
Both countries aim to increase bilateral trade beyond $20 billion in five years
The deal aligns with global trends of securing raw material supply chains
What Happens Next
Both governments will set up joint working groups to identify investment opportunities in mining and steel projects. The agreement may lead to technology and digital infrastructure exchanges, and could pave the way for future trade in local currencies.
Frequently Asked Questions
What minerals are central to the pact?
The pact focuses on iron ore, nickel, cobalt and other critical minerals used in steelmaking and high‑tech industries.
How will the trade target be achieved?
India and Brazil plan to deepen trade by expanding investment in mining, steel infrastructure and technology, aiming to lift bilateral trade beyond $20 billion in five years.
Will the countries use local currencies for trade?
Brazilian President Lula has advocated for trade in local currencies, but no formal decision has been made yet.
What sectors beyond mining will benefit?
Both nations will also collaborate on technology, AI, semiconductors and digital public infrastructure.
Original Source
try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Trump imposes new 10% global levy as SCOTUS strikes down sweeping tariffs Is now time to double down on diversification? Europe wary as SCOTUS ruling triggers a ‘new round’ of trade uncertainty Stocks end higher after SCOTUS tariff ruling, S&P 500 snaps two-week losing streak (South Africa Philippines Nigeria) India, Brazil sign mining pact as Modi targets $20 billion trade in five years By Reuters Commodities Published 02/21/2026, 07:29 AM Updated 02/21/2026, 07:31 AM India, Brazil sign mining pact as Modi targets $20 billion trade in five years 0 US Dollar Brazil Real -0.65% TIOc1 -0.28% By Manoj Kumar and Mayank Bhardwaj NEW DELHI, Feb 21 - India moved to deepen trade ties with Brazil on Saturday, signing a pact to expand cooperation in mining and minerals as it seeks to meet rising domestic steel demand and support capacity expansion amid a global race for raw materials. The agreement was signed in the presence of India’s Prime Minister Narendra Modi and Brazilian President Luiz Inacio Lula da Silva, who arrived in New Delhi earlier this week for a three-day visit. Brazil is among the world’s top producers of iron ore and holds large reserves of minerals critical to steelmaking. Closer cooperation is expected to improve India’s access to raw materials and technologies needed to sustain long-term growth in its steel sector, an Indian government statement said. INFRASTRUCTURE INVESTMENT The cooperation will focus on attracting investment in exploration, mining and steel sector infrastructure, the statement said. India has steelmaking capacity of 218 million metric tons, and companies are expanding output to meet rising domestic demand driven by infrastructure development and industrialisation. Addressing a meeting with a Brazilian delegation led by Lula, Modi said their talks had focused on ways to deepen the India-Brazil trade partnership. "We are committed to taking bilateral trade much beyond $20 billion...
