India brazil trade relations

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  • Brazil is a top 10 importer of India's products and trade between the two BRIC countries will only grow. To do business in Brazil, you need a partner. That partner can be B2Brazil.com, Brazil's premiere B2B trade portal.
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India brazil trade relations

  1. 1. INDIA AND BRAZIL -TRADEORIENTATION AN OVER VIEW
  2. 2. 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. CONCLUSION2 INDIA AND BRAZIL- TRADE ORIENTATION
  3. 3. 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 & space3 INDIA AND BRAZIL- TRADE ORIENTATION
  4. 4. COMPARING INDIA AND BRAZIL y 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.4 INDIA AND BRAZIL- TRADE ORIENTATION
  5. 5. COMPARING INDIA BRAZIL y 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 products5 INDIA AND BRAZIL- TRADE ORIENTATION
  6. 6. FACTOR RESPONSIBLE FOR TRADE BETWEEN INDIA BRAZIL y Comparative advantage Brazil has comparative advantage in agricultural products whereas India has in pharmaceutical chemical products y Common World view Both countries wants permanent membership in UNSC Both supports the reform of Bretton woods institution6 INDIA AND BRAZIL- TRADE ORIENTATION
  7. 7. FACTOR RESPONSIBLE FOR TRADE BETWEEN INDIA BRAZIL y Common Development challenges To eliminate distortions subsidies in international trade in agriculture. To preserve food security. Rural development, eradication of poverty. y Growing Economies Since both are growing economies, main emphasis will be on increasing GDP growth, reducing poverty, genarating employment7 INDIA AND BRAZIL- TRADE ORIENTATION
  8. 8. FACTOR RESPONSIBLE FOR TRADE BETWEEN INDIA BRAZIL y Large Pool of Natural Resources Both are endowed with natural resources that help them to have comparative advantage in some products y Complementarities Trade between India Brazil compliment each other, because there is scarcity of some products like pharmaceutical products in brazil agricultural products in India8 INDIA AND BRAZIL- TRADE ORIENTATION
  9. 9. 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 instruments9 INDIA AND BRAZIL- TRADE ORIENTATION
  10. 10. COMPOSITION OF IMPORT-EXPORTS INDIA·S IMPORT FROM BRAZIL y India·s imports mainly include Agricultural products, live stock and dairy products and metals ore. y 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 products10 INDIA AND BRAZIL- TRADE ORIENTATION
  11. 11. ANALYSIS OF TREND AND PATTERN OF EXPORT-IMPORT FOR PERIOD 2005- 2010 1,800,000.00 1,600,000.00 1,400,000.00 1,200,000.00 1,000,000.00 EXPORT 800,000.00 IMPORT 600,000.00 400,000.00 200,000.00 0.00 2005-2006 2006-2007 2007-2008 2008-2009 2009-201011 INDIA AND BRAZIL- TRADE ORIENTATION
  12. 12. ANALYSIS OF TREND AND PATTERN OF EXPORT-IMPORT FOR PERIOD 2005-2010 y 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. y 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. y India·s import from Brazil has increased in 2007-2008, then fallen in 2008-2009, and again increased by 200 percent in 2009-2010 y In short, trade volume between India and Brazil has been increased approximately 3.5 times larger in 2009-2010 than in year 2005- 2006.12 INDIA AND BRAZIL- TRADE ORIENTATION
  13. 13. TRADE POLICY REGULATIONS Preferential Trade Agreement(PTA) y This is an agreement of India with Mercosur (Argentina, Paraguay,Uruguay Brazil) y Framework for PTA was signed in June 2003. y 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.13 INDIA AND BRAZIL- TRADE ORIENTATION
  14. 14. TRADE POLICY REGULATIONS India,Brazil South Africa(IBSA) y Formation in 2003 y Unique initiative undertaken in the area of South-South economic cooperation y Signment of ¶Brasilian Declaration·. y Seeks to increase the participation of developing countries as permanent non-permanent members in UNSC y Three large, economically well-endowed and dynamic countries, from three developing continents Attempt to strengthen trade, investment, transfer of technology and economic cooperation among themselves14 INDIA AND BRAZIL- TRADE ORIENTATION
  15. 15. TRADE POLICY REGULATIONS y Data: y The value of trade among IBSAs countries more than tripled from 1994 to 2004 y 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 y Immense strategic value for multilateral negotiations and shaping their respective roles in global economic governance15 INDIA AND BRAZIL- TRADE ORIENTATION
  16. 16. RECENT DEVELOPMENT IN TRADE RELATION y India and Brazil enjoy strong bilateral relations which are clearly reflected in various international forums such as IBSA, PTA and BRIC. GROWTH OF TRADE y Meeting of Both The Countries Minister for Development Industry and Foreign Trade. y Mutual investments have also increased in recent years, particularly in the field of information technology, biotechnology and pharmaceuticals.16 INDIA AND BRAZIL- TRADE ORIENTATION
  17. 17. RECENT DEVELOPMENT IN TRADE RELATION y 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. y Bilateral trade has jumped to US$ 3.12 billion in 2007 from merely US$ 488 million in 2000.17 INDIA AND BRAZIL- TRADE ORIENTATION
  18. 18. FUTURE PERSPECTIVES OF TRADE BETWEEN INDIA BRAZIL BRAZIL, RUSSIA, INDIA CHINA (BRIC)-2001 y BRIC is known as the Big Fourµ 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. y This thesis was proposed by Jim ONeill, global economist at Goldman Sachs, in a 2001 paper entitled The World Needs Better Economic BRICs.18 INDIA AND BRAZIL- TRADE ORIENTATION
  19. 19. FUTURE PERSPECTIVES OF TRADE BETWEEN INDIA BRAZIL y BRIC in the Future Dominant global suppliers of manufactured goods, services and of raw materials Cooperation is the next step among BRIC countries y Criticism Assumed resources are limitless and endlessly which might result in slower economic growth than anticipated19 INDIA AND BRAZIL- TRADE ORIENTATION
  20. 20. OPPERTUNITIES AND STEPS TO BE TAKEN y Improvement of infrastructure and communication systems y 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 y Establishment of PTA and the IBSA to promote trade y Potential in the exchange of technology and engineering capabilities y Brazil can contribute to Indias agricultural sector whereas India can provide pharmaceutical technology to Brazil20 INDIA AND BRAZIL- TRADE ORIENTATION
  21. 21. 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 differences21 INDIA AND BRAZIL- TRADE ORIENTATION

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