India, Brazil Ink MSME Pact to Boost Green Growth

India and Brazil have signed a Memorandum of Understanding (MoU) to strengthen cooperation in the Micro, Small and Medium Enterprises (MSME) sector, with a strong emphasis on promoting sustainable development and accelerating the green transition.

The agreement was formalised during the visit of Brazilian President Luiz Inacio Lula da Silva to India. It was signed between India’s Ministry of MSME and Brazil’s Ministry of Entrepreneurship, Micro and Small Enterprises, underscoring the expanding economic partnership between the two countries.

The MoU aims to establish a structured framework for regular dialogue and collaboration on MSME-related issues. It seeks to open new avenues for cooperation and create opportunities for enterprises in both nations to benefit from shared expertise and experience. By facilitating deeper engagement, the agreement is expected to help MSMEs gain insights into each other’s market dynamics, technological capabilities and policy ecosystems.

According to the Ministry of Micro, Small and Medium Enterprises, the pact will promote stronger institutional linkages and encourage partnerships across sectors. It also envisages enhanced knowledge exchange, capacity building initiatives and collaborative projects designed to boost productivity and competitiveness.

A central focus of the agreement is supporting the green transition. The MoU aims to improve MSMEs’ access to green finance and foster the adoption of sustainable and environmentally responsible business practices. By integrating sustainability into their operations, MSMEs in both countries will be better positioned to participate in global value chains and tap into emerging market opportunities.

The partnership is also expected to strengthen the resilience and long-term growth prospects of MSMEs by equipping them with tools and strategies for sustainable development. Overall, the MoU reflects India and Brazil’s shared commitment to inclusive economic growth, innovation and climate-conscious industrial progress.