India and Brazil MoU Signed to Deepen MSME Cooperation and Advance Green Transition

During Luiz Inácio Lula da Silva’s visit to India as President of Brazil, the Ministry of MSME signed a Memorandum of Understanding (MoU) with the Ministry of Entrepreneurship, Micro and Small Enterprises of the Federative Republic of Brazil to explore mutual collaboration.

The India-Brazil MoU will provide a platform for both sides to discuss issues related to Micro, Small and Medium Enterprises (MSMEs) and explore potential areas of cooperation for the mutual benefit of MSMEs in both countries.

It will provide a framework and an enabling environment for MSMEs from both countries to understand each other’s strengths, markets, technologies, and policies.

The MoU also seeks to create enabling conditions for advancing the green transition, including facilitating MSMEs’ access to green finance, thereby enabling their integration into global markets and value chains, improving productivity and competitiveness, and strengthening their capacity for sustainable development.

India and Brazil’s bilateral trade has increased by 25 per cent in the past year to reach USD 15 billion, highlighting the expanding cooperation between the two countries across sectors.

Brazil is India’s largest trading partner in the Latin America and Caribbean region, with bilateral engagement deepening in defence, energy, agriculture and agrochemicals.

India is currently the world’s fastest-growing major economy, with real GDP growth in the second quarter exceeding 8 per cent and is on track to surpass Germany within the next two years to become the world’s third-largest economy.

India has recently concluded a series of high-quality Free Trade Agreements and is actively negotiating several more. With these agreements, India now enjoys preferential access to nearly two-thirds of global trade. 

These Free Trade Agreements will play a critical role in enabling the Indian industry to expand both domestically and internationally.

A partnership with Brazil will further help India tap into natural resources, including niobium, lithium, and iron ore, which are vital to the global energy transition and emerging technologies. Brazil is also strong in agriculture, aerospace, automotive and digital technologies. 

India and Brazil together have the potential to reshape global value chains through resources and innovation, and this MoU would further strengthen bilateral strategic cooperation.