India’s Prime Minister Narendra Modi visited Brazil in July 2025 to attend the BRICS summit. This was the first Indian PM’s visit to Brazil in nearly 60 years. Modi held talks with Brazilian President Luiz Inácio Lula da Silva to enhance bilateral cooperation. The focus was on trade, defence, energy, space, technology, agriculture and health.
Historical Ties Between India and Brazil
India and Brazil share a long history dating back to colonial times. Portuguese explorer Pedro Alvares Cabral landed in Brazil in 1500, shortly after Vasco da Gama reached India. Both Brazil and Goa were Portuguese colonies. This connection led to trade and cultural exchanges. India introduced crops like coconut and mango to Brazil. Brazil sent cashew nuts to India. Indian cattle breeds were exported to Brazil and now form over 80% of Brazilian livestock, known locally as ‘Nelore’.
Modern Diplomatic and Trade Relations
India and Brazil established formal diplomatic relations in 1948. Relations were slow to develop due to Brazil’s opposition to India’s 1961 Goa liberation operation. Economic reforms in the 1990s revived ties. By 2024-25, bilateral trade reached $12.20 billion. India exported petroleum products, agrochemicals, pharmaceuticals, engineering goods and aluminium. Brazil’s exports to India included crude oil, soya oil, gold, raw sugar, cotton, chemicals and iron ore. Around 4,000 Indians live in Brazil, with major Indian companies operating in São Paulo.
Strategic and Institutional Cooperation
India and Brazil have strengthened strategic ties through institutional mechanisms. These include the Joint Commission Meeting at the Foreign Minister level and the Strategic Dialogue between National Security Advisers. A 2+2 Political-Military dialogue was launched in 2024. Both countries are active in international forums like BRICS, G-20, G-4, International Solar Alliance and Biofuture Platform. They jointly advocate for greater representation of Global South nations.
Challenges in Brazil’s Economic and Political Landscape
Brazil’s economic growth has slowed over the last decade. Corruption scandals have affected political stability. In 2017, President Dilma Rousseff was impeached for budget manipulation. Her party, the Workers’ Party, lost power after 13 years. Economic difficulties included rising inflation and unemployment. The Petrobras scandal damaged public trust. Despite these issues, Brazil hosted the 2016 Olympics, the first in South America.
Questions for UPSC:
- Point out the significance of BRICS in shaping the economic policies of emerging economies like India and Brazil.
- Critically analyse the impact of colonial history on the bilateral relations between India and Brazil with suitable examples.
- Estimate the role of institutional mechanisms such as Joint Commission Meetings and Strategic Dialogues in enhancing international partnerships.
- Underline the challenges posed by political corruption in emerging economies and its effects on economic growth, with reference to Brazil and other countries.
Answer Hints:
1. Point out the significance of BRICS in shaping the economic policies of emerging economies like India and Brazil.
- BRICS provides a platform for economic cooperation among major emerging economies (Brazil, Russia, China, South Africa).
- Facilitates policy coordination to address common development challenges and global economic imbalances.
- Promotes trade, investment, and technology sharing among member countries.
- Helps emerging economies gain greater influence in global financial institutions (IMF, World Bank).
- Supports initiatives like the New Development Bank to fund infrastructure and sustainable development projects.
- Encourages South-South cooperation and collective bargaining power on global issues like climate change and trade rules.
2. Critically analyse the impact of colonial history on the bilateral relations between India and Brazil with suitable examples.
- Both India (Goa) and Brazil were Portuguese colonies, encouraging early cultural and trade links.
- Exchange of crops – India introduced coconut and mango to Brazil; Brazil sent cashew nuts to India.
- Indian cattle breeds exported to Brazil formed over 80% of Brazilian livestock (‘Nelore’ breed).
- Colonial legacies caused initial diplomatic distance; Brazil opposed India’s 1961 Goa liberation.
- Portuguese colonialism created shared linguistic and cultural elements but also delayed modern diplomatic ties.
- Post-colonial economic reforms and globalization helped overcome historical barriers to strengthen relations.
3. Estimate the role of institutional mechanisms such as Joint Commission Meetings and Strategic Dialogues in enhancing international partnerships.
- Provide structured platforms for regular dialogue and review of bilateral cooperation areas.
- Enable coordination on trade, defence, technology, agriculture, and health sectors.
- Facilitate conflict resolution and build trust through continuous engagement.
- Allow alignment of strategic interests and joint policy formulation (e.g., 2+2 Political-Military dialogue).
- Enhance collaboration in multilateral forums like BRICS, G-20, and International Solar Alliance.
- Support long-term partnership building beyond ad hoc diplomatic visits.
4. Underline the challenges posed by political corruption in emerging economies and its effects on economic growth, with reference to Brazil and other countries.
- Corruption undermines public trust and political stability, as seen in Brazil’s Petrobras scandal and Dilma Rousseff’s impeachment.
- Leads to inefficient allocation of resources and deters foreign investment.
- Causes economic slowdown due to policy uncertainty and governance weaknesses.
- Increases inflation and unemployment, worsening socio-economic conditions.
- Similar challenges observed in other emerging economies, hindering sustainable development.
- Anti-corruption reforms and transparency measures are critical to restoring growth momentum.
