President Pranab Mukherjee gave away the award to Lula in the presence of Prime Minister Manmohan Singh and UPA Chairperson Sonia Gandhi.
Lula said the award does not belong to him but the people of Brazil.
He was given the prize for his outstanding contribution to the cause of eliminating poverty and promoting inclusive growth in Brazil, his advocacy of stronger ties among the developing nations and for his singular contribution to the cause of India-Brazil partnership.
Speaking on the occasion, Mukherjee highlighted the former Brazilian President's contribution in pulling out 20 million people of his country out of poverty and his role in forging South-South cooperation and turning IBSA - a bloc of emerging economies - into a force to reckon with.
Commending Lula for following the path of inclusive growth, Mukherjee said India and Brazil are committed towards nuclear disarmament. He said the two countries have propagated the need to hold dialogue to resolve disputes as it was the best path.
Singh said India-Brazil relationship was transformed during the time President Lula was at the helm of affairs in his country.
"For the two of us, however, the relationship was more than a series of agreements. We shared a belief that although our countries were separated by deep oceans, we were united by similar values, challenges and aspirations and that we were uniquely placed to work together for a better world," he said. (MORE)
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