Seeking to upgrade bilateral ties, India and Brazil on Tuesday held wide-ranging discussions to step up cooperation in agriculture, air services, health and other areas.
During their meeting, Prime Minister Manmohan Singh and President Lula da Silva shared the view that there was immense potential for enhancing bilateral ties in diverse areas.
The two sides moved towards firming up accords on air services, science and technology cooperation, health, agriculture and urban development.
Public Sector Bharat Earth Movers Limited (BEML) will enter into an agreement for manufacture of rail wagons and ONGC Videsh Limited (OVL) is expected to sign a pact with Petrobras for mutual oil exploration.
With Brazil's pioneering technology in developing an alternative bio-fuel Ethanol, India has shown interest in entering into cooperation in that area.
Politically Brazil has been on India's side on all major issues like disarmament, terrorism, WTO and UN Security Council reforms.
The trade between the two countries has touched 3.2 billion dollars of which Indian exports amount to USD 1.5 billion with a number of cross investments in the two countries.
Singh, along with the Brazilian leader and South African President Thabo Mbeki, will take part in the first-ever IBSA summit on Wednesday.
On the agenda will be regional and global issues like UN reforms, terrorism and West Asia situation as also WTO negotiations.
The trilateral meet will also focus on the peaceful use of nuclear energy and nuclear disarmament and cooperation in bio-fuel and agriculture.
A free trade agreement among the three countries is high on the agenda. An action plan for trade facilitation is also expected to be drawn up.