Brazil’s Grand Gesture: Modi-Lula Bond Deepens India-Brazil Ties, Sends Signal to China

Brazil’s Grand Gesture: Modi-Lula Bond Deepens India-Brazil Ties, Sends Signal to China

Modi-Lula State Dinner Marks Strategic Deepening of India-Brazil Ties Amid China’s BRICS Absence

Brasília, July 5, 2025 — In a powerful diplomatic gesture, Brazilian President Luiz Inácio Lula da Silva is set to host Indian Prime Minister Narendra Modi at a grand state dinner alongside the ongoing BRICS summit. While such events often carry ceremonial flair, this particular dinner is rich in geopolitical significance, especially as Chinese President Xi Jinping has opted to skip the summit for the first time in 12 years.

Observers see this as more than a diplomatic coincidence—it’s a calculated move by Brazil and India to strengthen their strategic alignment, pushing a clear signal to China about the rising influence of the India-Brazil partnership in the Global South.

China’s Absence and Brazil’s Defiance

Diplomatic insiders suggest that Xi Jinping’s absence may be linked to Brazil’s high-profile invitation to PM Modi. The concern in Beijing, reportedly, was that Xi’s presence could appear diminished if Modi took center stage during Brazil’s elaborate hosting.

Yet President Lula did not blink. Despite China’s cold shoulder, he stood firm on his commitment to host Modi—demonstrating Brazil’s growing interest in India as a long-term strategic partner, regardless of the potential diplomatic cost with China.

Modi and Lula: A Budding Personal Rapport

Since 2023, Modi and Lula have met four times, building a rapport marked by mutual admiration and shared global ambitions. At the G20 Summit in 2024, Lula praised India’s presidency, admitting that many aspects of Brazil’s own G20 approach were inspired by India’s leadership.

Their partnership goes beyond global economics. Following the April 22 terror attack in Pahalgam, Lula personally reached out to Modi in solidarity—an unprecedented move from a South American leader and an indicator of deepening strategic alignment.

Strategic Synergy in Defence and Security

One of the most promising avenues of cooperation is in defence and aerospace. Brazil is exploring deals involving India’s:

• Akash air defence system
• Garuda artillery guns
• Coastal surveillance systems
• Scorpene-class submarine support
• BrahMos supersonic missile cooperation

Brazilian interest in Indian defence manufacturing surged after the success of Operation Sindoor, where India repelled a complex drone and missile attack using indigenous defence platforms.

In the aerospace sector, Mahindra Defence and Brazilian manufacturer Embraer have signed an MoU for co-developing the C-390 Millennium transport aircraft, with an eye on co-production and export—a potential boost to India’s defence export ambitions.

Economic Relations: From Raw Materials to Biofuels

Bilateral trade between India and Brazil now exceeds $15 billion, with India exporting petroleum, pharmaceuticals, and machinery, while importing crude oil, soybeans, and sugar.

Despite this robust foundation, both sides see untapped potential, especially in:

• Services
• Renewables
• Biofuel technology

As leading producers of biofuels, the two nations are co-driving the Global Biofuel Alliance, initiated during India’s G20 presidency and actively backed by Brazil.

Brazil’s vast reserves of crude oil, rare earth minerals, and other resources make it an increasingly important partner in India’s energy security strategy.

🇮🇳 Indian Investment in Brazil on the Rise

Indian companies have invested over $6 billion in Brazil, with major firms like Tata Motors, Zydus Cadila, and Glenmark expanding their presence in Latin America. In contrast, Brazilian investment in India is around $1 billion, though sectors such as aviation, green energy, and defence are opening new doors.

With Brazil being the 7th largest economy (GDP: $2.12 trillion) and housing over 212 million people, it represents a strategic market for Indian firms targeting Latin America.

Multilateral Alignment: G20, BRICS, and G4

India and Brazil are aligned on the global stage, sharing membership in:

• G20
• BRICS
• World Trade Organization
• G4 (with Japan and Germany)

Both nations champion UN Security Council reform, advocating for a more democratic and representative global governance system.

Together, they promote multilateralism based on inclusivity, sustainability, and equitable development, standing apart from bloc-based politics led by traditional superpowers.