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
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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
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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.
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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
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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
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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
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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
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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
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ANALYSIS OF TREND AND PATTERN OF EXPORT-IMPORT FOR PERIOD 2005-2010
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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.
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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.
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TRADE POLICY & REGULATIONS
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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
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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.
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RECENT DEVELOPMENT IN TRADE RELATION
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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.
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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
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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
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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
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