INDIA AND BRAZIL -TRADE

ORIENTATION

AN OVER VIEW
 CONTENT
1. INTRODUCTION
2. COMPARING INDIA AND BRAZIL
3. FACTOR RESPONSIBLE FOR TRADE
BETWEEN INDIA & BRAZIL
4. COMPOSITION OF IMPORT-EXPORTS
5. ANALYSIS OF TREND AND PATTERN OF
EXPORT-IMPORT FOR PERIOD 2005-2010
6. TRADE POLICY & REGULATIONS
7. RECENT DEVELOPMENT IN TRADE
RELATION
8. CONCLUSION
2 INDIA AND BRAZIL- TRADE ORIENTATION
 INTRODUCTION
• 500 Years old relationship.
• Portugal’s Padro Cabral searched Brazil in 1500,he
was sent to india by portugal.
• Brazil and India were colonies which led to
exchange of several agricultural crops.
• Diplomatic relation between India and Brazil
established in 1948.
• In recent years, trade has been extended to divers
areas as science & technology, pharmaceutical &
space
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 COMPARING INDIA AND
BRAZIL
Similarities
 Both are developing nations- India & Brazil are in their
development phase.
 Colonies of European countries- India was British colony
whereas Brazil was Portuguese colony.
 Agriculture based economies- In both the countries more
than 60% people are working in agriculture sector.

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 COMPARING INDIA & BRAZIL
Differences
 Population- India’s population is 6 times larger than Brazil.
 Population Density- 16 times larger in India as compared to
Brazil.
 Area- 3 times larger in Brazil than India.
 GDP- For 2009-10, Brazil’s GDP is 1,612 trillion $ whereas
India’s GDP is 1,264 trillion $
 Per capita Income- 10 times more in Brazil than in India
 Agricultural productivity is higher in Brazil than in India,
Brazil is one of the largest exporter of agricultural products

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 FACTOR RESPONSIBLE FOR TRADE
BETWEEN INDIA & BRAZIL

Comparative advantage
 Brazil has comparative advantage in agricultural
products whereas India has in pharmaceutical &
chemical products
Common World view
 Both countries wants permanent membership in UNSC
 Both supports the reform of Bretton woods institution

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 FACTOR RESPONSIBLE FOR TRADE
BETWEEN INDIA & BRAZIL
Common Development challenges
 To eliminate distortions & subsidies in international
trade in agriculture.
 To preserve food security.
 Rural development, eradication of poverty.
Growing Economies
 Since both are growing economies, main emphasis will
be on increasing GDP growth, reducing poverty,
genarating employment

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 FACTOR RESPONSIBLE FOR TRADE
BETWEEN INDIA & BRAZIL

Large Pool of Natural Resources

 Both are endowed with natural resources that help them
to have comparative advantage in some products
Complementarities
 Trade between India & Brazil compliment each other,
because there is scarcity of some products like
pharmaceutical products in brazil & agricultural products
in India

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 COMPOSITION OF IMPORT-
EXPORTS

INDIA’S EXPORT TO BRAZIL

 India’s exports are pharmaceutical goods, auto parts, Engineering
goods, chemicals and textiles.
 Main items include :
1. Products of the milling industry, malt, starches, insulin, wheat gluten.
2. Explosives, pyrotechnic products, matches, alloys, certain combustible
preparations
3.Paper and Paperboard, articles of paper pulp, of paper or of paperboard.
4. Printed books, newspapers, pictures and other products of the printing
industry.
5. Coated, covered or laminated textile fabrics; textile articles of a kind
suitable for industrial use
6. Clocks and watches and parts thereof
7. Heavy machinery and their parts
8. Arms, Ammunition and musical instruments

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 COMPOSITION OF IMPORT-
EXPORTS
INDIA’S IMPORT FROM BRAZIL
 India’s imports mainly include Agricultural products, live stock and
dairy products and metals ore.
 Main items included are as follow-
1. Agricultural Products
a. Coffee, tea, oil seeds and live trees and plants.
b. Rubber and plastics
c. Products of animal origin
d. Oil, seeds and medicinal plants
e. Sugar and sugar confectionery
2. Metals and Metals Products
a. Iron and Steel and their products
b. Copper and Nickel and their products
c. Aluminum and their product
3. Mineral fuel, oil and products

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 ANALYSIS OF TREND AND PATTERN OF EXPORT-IMPORT FOR PERIOD
2005-2010

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 ANALYSIS OF TREND AND PATTERN OF
EXPORT-IMPORT FOR PERIOD 2005-2010
 India’s export to the Brazil is always greater than imports in
values terms except in the current year i.e. 2009-2010 where
there is import is greater than export.
 Although percentage share of India’s export to Brazil has
fallen over the period, there absolute value has increased in
the year 2008-2009 and then has fallen a little.
 India’s import from Brazil has increased in 2007-2008, then
fallen in 2008-2009, and again increased by 200 percent in
2009-2010
 In short, trade volume between India and Brazil has been
increased approximately 3.5 times larger in 2009-2010 than
in year 2005-2006.

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 TRADE POLICY &
REGULATIONS
Preferential Trade Agreement(PTA)
 This is an agreement of India with Mercosur (Argentina,
Paraguay,Uruguay & Brazil)
 Framework for PTA was signed in June 2003.
 Five agreement were signed between two countries
1.Peaceful use of outer space
2.Co-operation in areas like railway, biotechnology etc.
3.Modernizing intellectual Property Rights
4.Promotion of tourism & cultural exchange
5.Keen to partner with Indian space research organization to
develop it’s own ambitious plans under the Brazilian space
agency.

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 TRADE POLICY & REGULATIONS
India,Brazil & South Africa(IBSA)
Formation in 2003
 Unique initiative undertaken in the area of South-South
economic cooperation
 Signment of ‘Brasilian Declaration’.
 Seeks to increase the participation of developing countries as
permanent & non-permanent members in UNSC
Three large, economically well-endowed and dynamic
countries, from three developing continents
 Attempt to strengthen trade, investment, transfer of
technology and economic cooperation among themselves

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 TRADE POLICY & REGULATIONS
Data:
The value of trade among IBSA's countries more than tripled
from 1994 to 2004
IBSA countries can reinforce the economic strength of each
other by creating a market of 1.2 billion people, 1.8 trillion
dollars of GDP and foreign trade of nearly 600 billion dollars
Immense strategic value for multilateral negotiations
and shaping their respective roles in global economic
governance
 
 

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 RECENT DEVELOPMENT IN TRADE
RELATION
 India and Brazil enjoy strong bilateral relations which
are clearly reflected in various international forums
such as IBSA, PTA and BRIC.
GROWTH OF TRADE
Meeting of Both The Countries Minister for
Development Industry and Foreign Trade.
Mutual investments have also increased in recent
years, particularly in the field of information
technology, biotechnology and pharmaceuticals.

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 RECENT DEVELOPMENT IN TRADE
RELATION

 Continue to be close partners in the UN, WTO and other

international foray on issues such as social development,
health care, sustainable economic development and poverty
alleviation.
 Bilateral trade has jumped to US$ 3.12 billion in 2007 from
merely US$ 488 million in 2000.

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 FUTURE PERSPECTIVES OF TRADE BETWEEN
INDIA & BRAZIL

BRAZIL, RUSSIA, INDIA & CHINA (BRIC)-2001

 BRIC is known as the "Big Four” is a grouping that refers to
the countries of Brazil, Russia, India, and China that are
deemed to all be at a similar stage of newly advanced
economic development.
 This thesis was proposed by Jim O'Neill, global economist at
Goldman Sachs, in a 2001 paper entitled "The World Needs
Better Economic BRICs.

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 FUTURE PERSPECTIVES OF TRADE
BETWEEN INDIA & BRAZIL
BRIC in the Future
 Dominant global suppliers of manufactured goods,
services and of raw materials
 Cooperation is the next step among BRIC countries
Criticism
 Assumed resources are limitless and endlessly which
might result in slower economic growth than anticipated

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 OPPERTUNITIES AND STEPS TO BE
TAKEN
Improvement of infrastructure and communication
systems
Brazil and India have a huge business opportunity in
pharmaceuticals, bio-fuels, IT, food processing,
automobile parts, mining, civil aviation, medical
equipment, infrastructure and railway equipment
Establishment of PTA and the IBSA to promote trade
Potential in the exchange of technology and engineering
capabilities
Brazil can contribute to India's agricultural sector whereas
India can provide pharmaceutical technology to Brazil

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 CONCLUSION
 Huge potential of trade between India and Brazil
 Invest more in infrastructure and communication
 Make India more favorable for investment for Brazil
 India also needed to invest in Brazil in order to reap
benefits from higher rate of returns from Brazil
 Important not underestimate the cultural differences

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