Brazil is the largest economy in Latin America and the eighth largest in the world, based on nominal GDP and ninth largest by purchasing power parity. Brazil is one of the fastest growing economies in the world with an average growth rate of 5 %. As per Goldman Sachs report Brazil will become one of the five largest economies in the world in the times to come, thus becoming one of the most sought after industrial destination. Brazil is member of various economic organizations. At present its 60 % of exports consist mostly of manufactured or semi manufactured goods. Its main trade partners as per recent reports are Latin America (25.9 %), EU (23.4 %), Asia (18.9 %), the United States (14.0 %), and others (17.8 %). Brazil has a broad base in the sophisticated technological sector that ranges from automobile, petrochemicals, fertilizers, submarines, aircrafts, space research and also a pioneer in many fields, including deep water oil research, ethanol production and blending.  Thus it offers great opportunities for India to get into economic and trade ties to exploit potential of Brazil and thus further increasing the mutual trade which has not yet reached the desired level. 
In recent years India has realised the mutual trade potential of the two countries, which is evident from the frequent interaction of leaders from both countries and various trade agreements between the two countries. In January 2004 president Lula da Silva visited India and preferential trade agreements between India and Mercosur  was signed. India and Brazil also sign co-operation agreement on tourism, peaceful uses of outer space, exemption of visa requirements for diplomatic and official/service passport holders, co-operation between Indian Space Research Organization (ISRO) and Brazilian Space Agency.
In November 2006 India's Prime Minister Manmohan Singh visited Brazil on the sidelines of IBSA's first summit which was a visit by an Indian Prime Minister after an interval of 38 years. In acknowledgment of ''strategic relationship'' that two countries share, issues such as energy security, international security situation including terrorism and setting up a joint committee on Bio fuels were discussed. Both countries vowed to create conducive environment to further increase in trade and investment. The National Institute of Metrology, Standardization and Industrial Quality (INMETRO) and the National Physical Laboratory of India (NPLI) agreed on scientific and technological operation in the areas of Chemistry, Physics and Engineering Measurement Sciences. MoU in the field of Human Settlements,Plant Health Protection, MoU between Bureau of Indian Standards & ABNT, MoU between Petrobras and ONGC/OVL were signed.(责任编辑：BUG)