Brazilian President Luiz Inacio Lula da Silva, on a visit to New Delhi, told business leaders that both countries could not only achieve the "target we have set, we could go beyond that."

"We have decided to increase our trade from the present 2.4 billion dollars to 10 billion by 2010," said Lula, on his second visit to India since 2003.

"With a total population of 1.3 billion inhabitants, we have not even discovered 10 percent of our trade potential."

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.

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

Brazil is the largest producer and exporter of ethanol, which may be used by 80 percent of new cars sold in the country.

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