India and Brazil have signed a memorandum of understanding to strengthen cooperation between micro, small and medium enterprises (MSME) and to accelerate a green transition. The agreement establishes a framework for collaboration across trade, technology transfer and capacity building to support sustainable industrial practices. Officials described the pact as a step towards closer economic ties and shared innovation in low carbon solutions. The pact focuses on priority sectors where small enterprises can adopt cleaner processes and resilient supply chain practices.

The memorandum envisages joint initiatives to promote clean technology adoption, improve access to green finance and expand market linkages for small businesses. It also prioritises skill development, incubator support and regulatory cooperation to reduce barriers to cross border commerce. Both sides committed to facilitate investment and to create mechanisms for regular dialogue and progress review. The agreement will seek alignment on technical standards and certification to ease market access for jointly developed products and services.

Implementation will be guided by a working group comprising representatives from relevant ministries, industry associations and research institutions from both countries. The group will identify pilot projects, monitor outcomes and recommend policy measures to scale successful models. Emphasis will be placed on energy efficiency, renewable energy deployment and circular economy practices tailored to the needs of MSME. Capacity building will include advisory services, technology demonstration and exchange of best practices to raise compliance with environmental norms.

The pact is expected to help enterprises adopt sustainable processes, enhance competitiveness and access new markets while contributing to national climate goals. Authorities indicated that the cooperation could catalyse innovation and job creation across segments of the economy that are critical to inclusive growth. Continued engagement will focus on measurable results and on fostering knowledge exchange to sustain long term benefits. Stakeholders will meet periodically to assess progress and adapt initiatives so that gains are sustained over time.