This document discusses trade relations between India and Brazil. It provides an overview of their historical and economic similarities as developing nations. While India has comparative advantages in pharmaceuticals and chemicals, Brazil is stronger in agriculture. Recent years have seen increasing bilateral trade and cooperation within organizations like IBSA and BRIC. The value of trade between India and Brazil has more than tripled from 2000-2007 and is expected to continue growing as their economies expand further.

1. INDIA AND BRAZIL -TRADE
ORIENTATION
AN OVER VIEW

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. CONCLUSION
2 INDIA AND BRAZIL- TRADE ORIENTATION

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 & space
3 INDIA AND BRAZIL- TRADE ORIENTATION

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. 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 products
5 INDIA AND BRAZIL- TRADE ORIENTATION

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 institution
6 INDIA AND BRAZIL- TRADE ORIENTATION

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
employment
7 INDIA AND BRAZIL- TRADE ORIENTATION

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 India
8 INDIA AND BRAZIL- TRADE ORIENTATION

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 instruments
9 INDIA AND BRAZIL- TRADE ORIENTATION

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 products
10 INDIA AND BRAZIL- TRADE ORIENTATION

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 2009-2010
11 INDIA AND BRAZIL- TRADE ORIENTATION

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. 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. 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 themselves
14 INDIA AND BRAZIL- TRADE ORIENTATION

15. TRADE POLICY REGULATIONS
y Data:
y The value of trade among IBSA's 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 governance
15 INDIA AND BRAZIL- TRADE ORIENTATION

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. 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. 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 O'Neill, global economist at Goldman
Sachs, in a 2001 paper entitled The World Needs Better Economic
BRICs.
18 INDIA AND BRAZIL- TRADE ORIENTATION

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 anticipated
19 INDIA AND BRAZIL- TRADE ORIENTATION

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 India's agricultural sector whereas
India can provide pharmaceutical technology to Brazil
20 INDIA AND BRAZIL- TRADE ORIENTATION

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 differences
21 INDIA AND BRAZIL- TRADE ORIENTATION