NEW DELHI, June 4: Emerging economic powers India and Brazil pledged on Monday to increase bilateral trade four-fold to $10 billion in the next three years.

Brazilian President Luiz Inacio Lula da Silva, on a visit to New Delhi, told business leaders that both countries could achieve not only the “target we have set, we could go beyond that.” “We have decided to increase our trade from the present $2.4 billion to 10 billion by 2010,” said Lula, a goal endorsed by Indian trade minister Kamal Nath.

“With a total population of 1.3 billion inhabitants, we have not even discovered 10 per cent of our trade potential,” said Lula, on his second visit to India since 2003.

During a visit by Indian Prime Minister Manmohan Singh to Brazil in September, Lula's administration promised to help New Delhi produce ethanol and cut its dependence on oil.

Brazil is the largest producer and exporter of ethanol fuel, which is used by 80 per cent of new cars sold in the country.

Ethanol meets 17 per cent of Brazil's fuel needs. Brazil produces 16 billion litres (4.2 billion gallons) annually, of which three billion litres are exported, according to official statistics.

India, which imports more than three-fourths of its oil requirements, is looking for cheaper sources of energy to fuel blistering economic growth.

Lula also held talks with Indian Prime Minister Manmohan Singh, with both sides signing seven agreements covering space, education and energy to cement their strategic partnership, an Indian official said.

—AFP