Critical minerals, defence, and markets: What will drive Modi–Lula talks today?

Prime Minister Narendra Modi with Brazil's President Luiz Inacio Lula da Silva

Prime Minister Narendra Modi will be meeting Brazilian President Luiz Inacio Lula da Silva in New Delhi on Saturday, with an objective to strengthen cooperation in critical minerals, trade, defence, digital technology and advancing strategic supply chain partnerships.

President Lula, who also participated in the AI Impact Summit, is leading a delegation of ministers and business leaders to explore avenues for deeper economic and industrial collaboration between the two emerging economies.

A key outcome expected from the PM Modi-Lula meeting is the signing of a memorandum of understanding on critical minerals, aimed at securing long-term supply chains and strengthening resource cooperation.

Presidente Lula é recebido em cerimônia oficial de boas-vindas na Índiahttps://t.co/di6LgmblId

— Lula (@LulaOficial) February 21, 2026

The meeting assumes significance as India seeks to diversify sourcing of rare earth elements, essential for electric vehicles, renewable energy systems, electronics, and defence, from countries such as Brazil, which holds the world’s second-largest reserves, while reducing its dependence on China, which dominates global rare earth production.

As per reports, the two sides are also likely to also sign a pact between Brazilian aerospace major Embraer and Adani Defense & Aerospace for the construction of an E175 aircraft final assembly line in India, signalling growing industrial collaboration.

Officials said discussions will also focus on increasing bilateral trade, which crossed $15 billion in 2025, with both countries targeting $20 billion by 2030. The talks will include efforts to expand cooperation in strategic sectors such as clean energy, mining, aviation, and manufacturing.

According to a report in The Indian Express, a defence cooperation agreement signed in 2003 was ratified in 2006, which created a Joint Defence Committee (JDC) as institutional mechanism. Over the last few years, engagement between the defence forces of both countries has grown significantly. This is expected to get a fillip during this visit.

The leaders are also expected to exchange views on global economic challenges and multilateral trade tensions.

The two leaders have maintained a channel of communication and have scaled up their interaction in the aftermath of the US tariffs imposed last year.

On January 22 this year, Modi and Lula spoke on telephone, focusing on the Venezuelan situation after the capture of President Nicolas Maduro by the US government.

In May 2025, President Lula called PM extending support and solidarity with India in the aftermath of the Pahalgam terrorist attack. In June 2025, the two leaders interacted on the sidelines of G7, Canada, reported The Indian Express.

Brazil remains India’s largest trading partner in Latin America, exporting crude oil, sugar, iron ore, and agricultural commodities.