India and Brazil are strengthening their ties through potential collaboration on digital payment systems, specifically India's Unified Payments Interface (UPI) and Brazil's Pix. This partnership, discussed between Prime Minister Modi and President Lula, aims to enhance financial inclusion and entrepreneurship in both countries.

Both nations have prioritized digital innovation to expand banking access, decrease reliance on cash, integrate the informal economy, and simplify daily payments. India's UPI, launched in 2016, is managed by the National Payments Corporation of India (NPCI), a public-private initiative. Brazil's Pix, introduced in 2020, is directly overseen by Brazil's central bank. By sharing large-scale technological solutions for digital transformation, India can offer its proven DPI tools like UPI to support Brazil's efforts to expand digital access and strengthen governance systems.

The collaboration occurs amidst growing trade relations and concerns among US banks about losing market share to Pix's increasing popularity. Both India and Brazil aim to increase bilateral trade to $20 billion over the next five years. This partnership reflects a shared vision for inclusive development and human-centric innovation, expanding collaboration in artificial intelligence and supercomputers.

The agreement signifies India's commitment to solidifying its leadership in emerging technologies. By sharing its DPI tools, India is not only exporting technological solutions but also offering a scalable and inclusive digital governance model, signaling a shift in global digital dynamics and positioning India as a key enabler of accessible and impactful tech innovation. This agreement also unlocks new international markets for Indian startups and digital service providers.

The leaders also discussed the international scenario and the effects of unilateral tariffs imposed by the US, which directly affected the economies of Brazil and India. Both criticized the measure and reinforced the need to strengthen multilateral mechanisms negotiation, defending an international system based on rules and cooperation. This alignment is part of a broader geopolitical recalibration of BRICS, which is accelerating plans to trade in local currencies, boost the role of the New Development Bank, and develop alternatives to the SWIFT financial messaging system.

Both countries are examining avenues for eventual cross-border interoperability of their payment systems. This aligns with broader BRICS efforts to build alternatives to Western-dominated financial systems, especially in light of U.S. tariff measures targeting key economies in the Global South.