India and Brazil Deepen Trade Ties Through 7th Monitoring Mechanism, Eyes USD 20B Target
SDG 8: Decent Work & Economic Growth | SDG 17: Partnerships for the Goals
Institutions: Ministry of Commerce & Industry
In New Delhi, the 7th India-Brazil Trade Monitoring Mechanism (TMM) convened with Commerce Secretary Rajesh Agrawal and Brazilβs Secretary of Foreign Trade Tatiana Prazeres as co-chairs. The institutional meeting reviewed bilateral trade and investment relations, and mapped a roadmap to reach a USD 20 billion trade target over the next five years, up from USD 12.19 billion in FY 2024β25.
Discussions spanned market access, PTA expansion (India-MERCOSUR), sectoral cooperation in pharma, chemicals, MSMEs, banking, visa facilitation, and multilateral trade issues. The outcome will be elevated to higher-level bilateral talks, including between the Vice President of Brazil and Indiaβs Commerce Minister when he visits India soon.
The TMM reflects Indiaβs strategic push to expand ties in Latin America, diversify trade partners, and anchor its diplomatic-economic outreach through structured institutional mechanisms.
What is the Trade Monitoring Mechanism (TMM)? An institutionalised platform between India and Brazil to facilitate regular dialogue, resolve trade barriers, monitor commitments, and guide sector-level cooperation to deepen bilateral economic ties.
What is MERCOSUR? MERCOSUR (Southern Common Market) is a South American trading bloc comprising Brazil, Argentina, Uruguay, and Paraguay as founding members. It is the fourth-largest integrated market globally, after the EU, NAFTA, and ASEAN.
What is the PTA expansion (India-MERCOSUR)? The PTA expansion refers to the ongoing negotiations to significantly broaden the existing Preferential Trade Agreement between India and the MERCOSUR trade bloc (Brazil, Argentina, Paraguay, and Uruguay). The original 2009 agreement was limited to around 450 products from each side. The expansion aims to boost trade by drastically increasing this coverage to between 1,500 and 4,000 tariff lines, moving the two sides toward negotiating a full Free Trade Area (FTA). It matters as it is a strategic step for India to diversify its exports and secure better access to the large South American market.
Relevant Question for Policy Stakeholders:
What complementary trade, diplomatic, and export-promotion reforms must India prioritise to ensure that the TMM roadmap translates into sustained trade growth and value-chain integration?
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