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India, Brazil agree to expand scope of PTA between India-Mercosur bloc

17 Oct 2025 Evaluate

The commerce ministry has indicated that the India and Brazil have agreed to expand the scope of existing preferential trade agreement (PTA) between New Delhi and four South American nation bloc Mercosur to boost economic ties. Mercosur is a trading bloc in Latin America, comprising Brazil, Argentina, Uruguay and Paraguay. The ministry stated that the countries have agreed to try to conclude the negotiations within one year from the launch of negotiations. The India-Mercosur PTA came into effect on June 1, 2009 and has limited coverage and contains only 450 tariff lines or products. 

Now, both sides are looking at expanding the scope of this pact to a full-fledged agreement. Besides, they have agreed that the expansion of the agreement should be substantial, aiming for a significant share of bilateral trade to benefit from tariff preferences; and the expansion should cover both tariff and non-tariff issues related to trade and economic partnership. The Brazilian side indicated that it will work in a coordinated manner with its Mercosur partners towards a substantial, swift, and mutually beneficial deepening of the agreement.

Brazil is the largest trading partner of India in the Latin American and Caribbean region, with bilateral merchandise trade standing at $12.19 billion during 2024-25. Further, both sides are aiming to increase the trade to $20 billion over the next five years. The Commerce and Industry Minister Piyush Goyal has suggested that the expansion of PTA will provide India a larger penetration in the South American market. Moreover, Brazilian Vice President Geraldo Alckmin has expressed confidence that the $20 billion trade target will be achieved. He also said that the Double Taxation Avoidance Agreement with India will help create a predictable and safer business environment. He added that Brazil is ready to launch a digital partnership with India towards artificial intelligence and high-performance computing.

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