The Commerce and Industry Minister Piyush Goyal has said that India is working to expand the preferential trade agreement (PTA) with the Latin American trade bloc - Mercosur to improve market access, to grow investments on both sides, to have technology partnerships, and to engage in sports, education, culture. Mercosur is a trade bloc comprising Brazil, Argentina, Uruguay, and Paraguay. Both sides have been looking to expand the scope of the PTA, which came into effect on June 1, 2009, as it has limited coverage and contains only 450 tariff lines or products.

Goyal noted that the bilateral trade between India and Brazil is growing but it is ‘sub-optimal’. He pointed that both parties have to be significantly more ambitious, as Brazil is India's largest trading partner in Latin America and the Caribbean region and their bilateral engagement has continued to deepen in several areas, such as defense, energy, agri, agrochemicals. Further, both nations are expanding cooperation in health and pharma, energy, including renewable energy, critical minerals, and aviation. He has invited Brazilian businesses to explore investment opportunities in India. The bilateral trade between India and Brazil has grown by 25% to over $15 billion in 2025.

He highlighted that Brazil is rich with natural resources, minerals like niobium, lithium and iron ore that are vital for shaping the future of technology and global energy transition. Further, Brazil's aerospace, automotive and digital technology industries are rapidly evolving, offering abundant opportunities for collaboration. He pointed that collectively these factors make Brazil India’s strategic partner in global supply chains. He emphasized that the both counties have the potential to reshape global supply or value chains with resources innovation and a forward-looking vision. Besides, both countries have set an annual bilateral trade target of $20 billion in the next five years and signed a pact for cooperation in the area of critical minerals following wide-ranging talks between Prime Minister Narendra Modi and Brazilian President Luiz Inacio Lula da Silva.