Brazil and India will strengthen cooperation on critical minerals and AI when President Lula meets Modi this weekend. We explain more in today’s deep dive.
If you have any questions about India, fill out this form or reach out to Shreyas at [email protected]
Macro
Chinese refiners are snapping up Russian oil cargoes meant for India. Deliveries rose to 2.1 million barrels per day in February which has so far offset the drop in cargoes from India. Prices for the Urals dropped to $12 (₹1,088) below Brent.
Equities
State-owned banks are up 12% since the start of the year while foreigners sold $1.2 billion (₹110 billion) in tech stocks. Even with the AI summit, banks are shining because of how they have caught up to international standards in digital operations. The easier credit environment is also improving margins which shone during Q4 earnings.
Ambani is investing $110 billion (₹10 trillion) over the next 7 years into AI. The goal is to embed AI into multiple different industries from manufacturing to health care. At the same time, Reliance and Jio will both incorporate more AI; of course, there will also be data center investments first starting this year in Gujarat.
The Bandhan Fund beat 93% of investment peers buying internet value stocks. Current holdings for the $2.1 billion (₹190.5 billion) fund include Paytm, Info Edge, and IndiaMart. They also focus on unpopular stocks or those facing current bad news.
Pernod Ricard (maker of Absolut Vodka and Chivas) may list its India unit.It employs over 1,500 people in the country with 24 production sites. Its French shares have dipped 17% over the last 12 months and the company is now worth $24.3 billion (₹2.2 trillion). A split would allow for shareholders to benefit more from India’s alcohol consumption growth.
Alts
Modi's push for 'Make in India' has spawned multiple AI models built for specific purposes. Examples include helping hundreds of millions of farmers with tailormade crop solutions or bridging the language barrier across the country.
OpenAI is partnering with Tata for a data center buildout and to infuse AI into Tata’s operations.The companies are going to develop a 100 MW data center which could be expanded to 1 GW — a 1 GW center normally costs at least $35 billion (₹3.2 trillion).
Policy
Modi is betting that the human capital of India will drive AI giants rather than tech or policy. Macron started the conference off by saying that no country should just serve as a source of data to be sold. In that vein, Modi is introducing privacy laws and AI authenticity tags on creative work. For the private sector, the main allure is then the 1.4 billion people population.
Macron has social media curbs for youths as a G7 priority.The announcement was joined by Modi and both are pushing to make sure AI is regulated for kids as well as large social media platforms that incorporate AI.
By joining the Investors Club, you’ll get deeply-researched investment reports on the Indian market every single month. The annual subscription costs $299 for a limited time, and you’ll immediately get access to all of our previous and future reports.
To get you started, here is our complimentary book, Investing in India, to get you started on everything you need to know about India’s markets and macroeconomic structure.
If you don’t want to commit to the annual subscription just yet, you can purchase just our January 2026 report here.
India is Deepening Ties with Brazil Over AI and Minerals
Brazil and India will strengthen cooperation on critical minerals and AI when President Lula meets Modi this weekend. He attended India’s AI summit earlier this week, though he did not hold a prominent speaking position.
There is a potential agreement on the table. For India, getting access to Brazil, home of the 2nd largest reserves of rare earths after China, would be key to become independent of the latter. Brazil wants a more inclusive global debate on AI given that only the US, Europe, and China have had movement in the area. As competition between the US and China intensifies over AI and the minerals powering it, cooperation between EM nations could strengthen the collective position of developing nations in shaping how the technology is developed and regulated.
The move is also nothing new: both nations sought closer ties after the 50 percent tariffs placed on both by the US. Modi visited Brazil in July where the two leaders agreed to work closer on defense, energy, and food security; the summit concluded with an agreement to reduce non-tariff trade barriers though this step has not materialized yet.
In terms of AI, Brazil and India are pushing for people-based, open-source, and multilingual AI models. Modi has already used the AI summit in Delhi to showcase the country’s vast population and deep engineering talent. For Lula, it showed how India can offer an alternative to AI models shaped only by western technology firms. Brazil wants to avoid a nuclear arms race where only a handful of nations were able to use atomic technology.
Brazil, similar to India, has emerged as a regional hotspot for AI-related investments, securing a $38 billion (₹3.4 trillion) commitment from TikTok to build a massive data center complex late last year. Elea Data Centers, a company backed by Goldman Sachs, also has plans for a $50 billion (₹4.5 trillion) project in Rio.
How helpful was today's newsletter?
See you tomorrow.
Written by Yash Tibrewal. Edited by Shreyas Sinha.
Sponsor the next newsletter to reach tens of thousands of U.S.-based business-savvy professionals. Reach out to [email protected].
Could your business use expert insights to power growth in India? Reach out to [email protected] for a free introductory call.
Disclaimer: This is not financial advice or recommendation for any investment. The Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.