India brazil trade realationship


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India brazil trade realationship

  1. 1. INDIA AND BRAZIL REALATIONSHIP Nitish kumar Era Business School Dwarka.
  2. 2. INTRODUCTION • • • • • • Population Area Capital Population Density Largest City Government • Official Language • Main Religion • GDP : 190,732,694. : 85,14,877. : Brasilia : 22 km : Sao-Paulo (11,037,593) : Federal Presidential constitutional republic. : Portuguese : 74% Roman Catholicism. : US$2.425 trillion.
  3. 3. • 500 year old relationship. • Portugal's Padro Carbal searched brazil in 1500, He was sent to India by Portugal. • Brazil and India were colonies which led to exchange of several exchange of corps. • Diplomatic relation between India and brazil in 1948. • In recent year, trade has been extended to diverse area as science & technology, pharmaceutical & space.
  4. 4. CAMPARING INDIAN & BRAZIL  Similarities :a) Both are developing nations- India and Brazil are in the development phase. b) Colonies of European countries- India was British colony where as Brazil was Portuguese colony. c) Agriculture based economics- In both the counties more than 60% people are working in agriculture sector.
  5. 5. CAMPARING INDIAN & BRAZIL  Differences a) b) c) d) e) f) Population India population is 6 times larger than Brazil. Population Density- 16 times larger in India as compares to Brazil. Area- 3 times in Brazil than India. GDP- For 2009-10, Brazil’s GDP is 1,612 trillion’s where as India’s GDP is 1,264 trillion’s. Per capital Income- 10 times more in Brazil than in India. Agriculture productivity is higher in Brazil than in India, Brazil is one of the largest exporter of agriculture products.
  6. 6. FACTOR RESPONSIBLE FOR TRADE BETWEEN INDIA & BRAZIL  Comparative advantage a) Brazil has comparative advantage in agriculture products where as India in pharmaceutical & chemical products.  Common World view a) Both countries wants permanent membership in UNSC. b) Both supports the reform Bretton woods institution.
  7. 7. FACTOR RESPONSIBLE FOR TRADE BETWEEN INDIA & BRAZIL  Common Development challenges a) To eliminate distortions & subsides in international trade in agriculture. b) To preserve food security. c) Rural development, eradication of poverty.  Growing Economics a) Since both are growing economics, main emphasis will be on increase GDP growth, reducing poverty, generating employment.
  8. 8. FACTOR RESPONSIBLE FOR TRADE BETWEEN INDIA & BRAZIL  Large Pool of Natural Resources a) Both are endowed with natural resources that help them to have comparative advantage in some products.  Complementarities a) Trade between India & Brazil compliment each other, because there is scarcity of some products like pharmaceutical products in brazil & agriculture products in India.
  9. 9. COMPOSITION OF IMPORT-EXPORT  INDIA EXPORT TO BRAZIL a) India’s exports are pharmaceutical goods, auto parts, Engineering goods, chemical and textile. b) Main items include : • Products of the milling industry, malt, starches, insulin, wheat gluten. • Explosives, paperboard, articles of paper pulp, of paper of paperboard. • Printed books, newspaper, pictures and other products of the printing industry.
  10. 10. • Coated, covered or laminated textile fabrics, textile articles of a kind suitable for industrial use. • Clock and watches and parts thereof. • Heavy machinery and their parts. • Arms, Ammunition and musical all instrument.
  11. 11.  INDIA’S IMPORT FROM BRAZIL – India’s imports mainly include agriculture products, live stock and dairy products and metals ore. – Main items included are as follow- 1. Agriculture Products • • • • Coffee, tea, oil, seeds and live and plants. Rubber and plastics. Oil, seeds and medicinal plants. Sugar and sugar confectionary.
  12. 12. 2 Metals and Metals products • • • Iron and Steel and their products. Copper and Nickel and their products. Aluminum and their products. 3 Mineral fuel, oil and products.
  13. 13. ANALAYSIS OF TREND AND PATTERN OF EXPORT-IMPORT FOR PERIOD 2005-10 – India’s export to the Brazil is always greater than import in values terms except in the current year i.e. 2009-10 where there is import is greater than export. – Although percentage share of India export to brazil has fallen over the period, there absolute value has increase in the year 2008-09 and then has fallen a little. – India’s import from Brazil has increase in 2007-08, then fallen in 2008-09, and again increased by 200 percentage in 2009-10. – In short, trade volume between India and Brazil has been increased approximately 3.5 times larger in 2009-10 than in year 2005-06.
  14. 14. TRADE POLICY & REGULATION 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. 2. 3. 4. 5. Peaceful use of outer space. Co-operation in area like railways, biotechnology etc. Modernizing intellectual Property Rights. Promotion of tourism & culture exchange. Keen to partner with Indian space research organization to develop it’s own ambitious plan under the Brazilian space agency.
  15. 15. RECENT DEVELOPMENT IN TRADE RELATION – India and brazil enjoy strong bilateral relation which are clearly reflected in various international forums such as IBSA, PTA and BRICS. GROWTH OF TRADE – Meeting of Both The Countries Minister for Development Industry and Foreign Trade. – Mutual investment have also increased in recent years, particularly in the field of information technology, biotechnology and pharmaceuticals.
  16. 16. FUTURE PERSPECTIVE OF TRADE BETWEEN INDIA & BRAZIL BRAZIL, RUSSIA, INDIA & CHINA (BRICS)-2001 – BRICS is known 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 on newly advanced economic development. – This thesis was proposed by Jim O’Neil, Global economist at Goldman Sachs, in a 2001 paper entitled “The World Needs Better Economic BRICs.”
  17. 17. OPPERTUNITIES AND STEPS TO BE TAKEN – Improvement of infrastructure and communication system. – 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 agriculture sector where as India can provide pharmaceutical technology to Brazil.
  18. 18. CONCLUSION – Huge potential of trade between India and Brazil. – Invest more in infrastructure and communication. – Make India more favorable for invest in Brazil in order to reap benefits from higher rate returns from Brazil. – Important not underestimate the culture differences.