India and Brazil Trade Orientation

AN OVER VIEW

INDIA AND BRAZIL -TRADE ORIENTATION

CONTENT1. INTRODUCTION2. COMPARING INDIA AND BRAZIL3. FACTOR RESPONSIBLE FOR TRADE

BETWEEN INDIA & BRAZIL4. COMPOSITION OF IMPORT-EXPORTS5. ANALYSIS OF TREND AND PATTERN OF

EXPORT-IMPORT FOR PERIOD 2005-20106. TRADE POLICY & REGULATIONS7. RECENT DEVELOPMENT IN TRADE

RELATION8. 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


COMPARING INDIA AND BRAZIL

SimilaritiesBoth 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.


COMPARING INDIA & BRAZIL

DifferencesPopulation- 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


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 viewBoth countries wants permanent membership

in UNSC Both supports the reform of Bretton woods

institution


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 EconomiesSince both are growing economies, main

emphasis will be on increasing GDP growth, reducing poverty, genarating employment


FACTOR RESPONSIBLE FOR TRADE BETWEEN INDIA & BRAZIL

INDIA AND BRAZIL- TRADE ORIENTATION8

Large Pool of Natural ResourcesBoth are endowed with natural resources that

help them to have comparative advantage in some products

ComplementaritiesTrade between India & Brazil compliment

each other, because there is scarcity of some products like pharmaceutical products in brazil & agricultural products in India

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 parts8. Arms, Ammunition and musical instruments


COMPOSITION OF IMPORT-EXPORTSINDIA’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 plasticsc. Products of animal origind.Oil, seeds and medicinal plantse. Sugar and sugar confectionery

2.Metals and Metals Productsa. Iron and Steel and their productsb.Copper and Nickel and their productsc. Aluminum and their product

3. Mineral fuel, oil and products


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


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.


TRADE POLICY & REGULATIONSPreferential 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 space2.Co-operation in areas like railway, biotechnology etc.3.Modernizing intellectual Property Rights4.Promotion of tourism & cultural exchange5.Keen to partner with Indian space research

organization to develop it’s own ambitious plans under the Brazilian space agency.


TRADE POLICY & REGULATIONS


India,Brazil & South Africa(IBSA)Formation in 2003Unique initiative undertaken in the area of South-

South economic cooperationSignment 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

TRADE POLICY & REGULATIONS


Data:The value of trade among IBSA's countries more

than tripled from 1994 to 2004IBSA 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

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 TRADEMeeting 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.


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.

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.


FUTURE PERSPECTIVES OF TRADE BETWEEN INDIA & BRAZILBRIC in the Future

Dominant global suppliers of manufactured goods, services and of raw materials

Cooperation is the next step among BRIC countries

CriticismAssumed resources are limitless and

endlessly which might result in slower economic growth than anticipated


OPPERTUNITIES AND STEPS TO BE TAKENImprovement of infrastructure and communication

systemsBrazil 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


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


India and Brazil Trade Orientation

Documents

Transcript of India and Brazil Trade Orientation