This document compares India and Brazil and discusses their trade relationship. It notes that both countries are developing nations that were former colonies. Their economies are agriculture-based and they have a 500-year relationship. Trade has expanded in recent years to areas like science, technology, pharmaceuticals, and space. India exports pharmaceuticals and machinery to Brazil, which exports agriculture and metals to India. The trade volume has increased approximately 3.5 times from 2005-2010.

1. INDIA AND BRAZIL
REALATIONSHIP
Nitish kumar
Era Business School Dwarka.

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. • 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. 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. 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. 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. 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. 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. 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. • 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.  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. 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.

14. 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.

15. 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.

16. 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.

17. 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.”

18. 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.

19. 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.