India and Brazil have entered into Memorandum of Understanding (MoU) to explore areas of mutual collaboration for the benefit of Micro, Small, and Medium Enterprises (MSMEs) and facilitate their access to green finance. The MoU was signed during the ongoing visit of Brazilian President Luiz Inacio Lula da Silva to India. The President of Brazil is on a five-day visit to India starting February 18 to hold wide-ranging talks with Prime Minister Narendra Modi and attend the AI Impact Summit.

The MoU will provide a platform for both sides to discuss the issues related to MSMEs and explore potential areas of cooperation for the mutual benefit of MSMEs in both countries. It will offer a framework and conducive environment for the MSMEs of both countries to understand each other's strengths, markets, technologies, and policies. 

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