India and Mercosur: Expanding Trade Horizons

India is taking significant steps to expand its preferential trade agreement with Mercosur, according to Commerce and Industry Minister Piyush Goyal. Speaking at Ficci's India-Brazil Business Forum, Goyal highlighted the potential for deeper economic ties between India and this South American trade bloc, which includes Brazil, Argentina, Uruguay, and Paraguay.

Since the India-Mercosur PTA's inception in 2009, covering only 450 tariff lines, there is now a concerted effort to broaden its scope into a comprehensive agreement. The goal is to boost trade and investment, facilitate technology partnerships, and foster collaborations in sports, education, and culture. Bilateral trade between India and Brazil has increased by 25% to over USD 15 billion, yet remains sub-optimal.

Prime Ministers Narendra Modi and Brazilian President Luiz Inacio Lula da Silva underscored the potential of reaching a USD 20 billion annual trade target in five years. The growing importance of sectors like clean energy, electric mobility, and aerospace will pave the way for expanded cooperation, promising an enriched partnership between these two nations.