Bilateral Relations
The relationship between India and Brazil has been productive since Indian independence, when in 1948 the Embassies were inaugurated, both in India and Brazil. Therefore, both countries share several similarities, as social, political, geographical and economical, that contribute to the optimization of this relationship over the years. India and Brazil stand out among the largest democracies in the world and share a multicultural, ethnical and religious nature that is expressed in the diversity that is so characteristic and respected in both countries. During the 1990s, there was a greater approximation due to the adoption of public policies aimed at the economic liberalization, making political and economic ties even more intense. According to the Ministry of Foreign Affairs - Brazil, political contacts narrowed even more in the 2000s, when several opportunities for cooperation were identified through the establishment of a Strategic Policy.
The approach also became evident during this period, when the Goldman Sachs instituted the term BRICS to refer to the emerging economies in the international market – Brazil, Russia, India, China and South Africa – which shared certain similarities, such as accelerated growth, high population level and great territorial extension. According to studies by the Economic Commission for Latin America and the Caribbean (CEPAL), countries that are part of the BRICS also gain expressiveness due to their productive capacity and a considerable increase in participation in international trade. In order to institutionalize even more this relationship, in 2003 they created a forum for cooperation between India and Brazil, which also included South Africa, and became known as IBAS.
The middle class and the challenges that both face before the configuration of the international system of traditional powers are also significant factors of approximation of both countries, resulting in the strengthening of trade due to the potential of these consumer markets and the intensity of bilateral relations. In this way, the conjuncture of these markets, make them complementary, and not competitors, since the products and services demanded by one of them are suppressed by the other, making commerce necessary and positive for the settlement of these issues.
According to a survey by the Brazilian Institute of Applied Economic Research (IPEA), the trade between Brazil and India has gained notoriety in numbers, where less than $ 500 million in 2000 increased to about $ 7.7 billion in 2010 from Indian participation in the Brazilian foreign trade. The rapprochement between India and Brazil is also expressed in the numerous signed cooperation agreements, resulting in joint positions in important decisions and issues, and in the positioning of both in important international organizations such as the United Nations Security Council and the World Trade Organization (WTO), calling for a new international order that questions the traditional configuration established in the system.
It seems that the future of this approach is promising, since over the years the economic elements have also brought political, cultural and social ties, which add up to good synergies between these countries.
Sources: World Bank, International Monetary Fund, Ministry of Foreign Affairs, United Nations (UN), Brazilian Institute of Applied Economic Research (IPEA), World Trade Organization (WTO).
Fonte: Secretaria de Comércio Exterior - Brasil
India
LOCAL TIME
CAPITAL
New Delhi
OFFICIAL CURRENCY
INR - Rúpia Indiana
Macroeconomics Data
7,3 %
per year
1.614
US$
317.544,64
Millions of US$
in 2016
459.369,46
Millions of US$
in 2016
PIB GROWTH RATE
PIB PER CAPTA
EXPORTS TOTAL
IMPORTS TOTAL
Introduction
India has a millennial legacy, which was influenced by the richest civilizations that over the years have shaped the country’s culture. On August 15, 1947, the country became independent of British rule under the leadership of Mahatma Gandhi, who preached a revolution based on nonviolent civil disobedience. With a population of more than 1 billion, today India stands out as one of the most populous countries and the largest democracy in the world and, according to the United Nations (UN) estimate, in 2028 will surpass China's population. In view of this, the UN also ranked three Indian cities, Delhi, Mumbai and Calcutta among the world's ten megacities. These factors bring to India a great diversity expressed by its culture having more than 1000 languages and dialects spoken in the country, with English being the only language in common among all. Economic data are also significant, being singled out by the International Monetary Fund (IMF) as the fastest growing country in the world with consistent rates of approximately 7% a year since the 1990s. Even in the face of an unstable international economic environment, India's economic indicators show the countrys potential to become a world power by the middle of the century. The increase in investments in the country, caused by government incentive policies, resulted in the population's income growth, making India a great power in the consumer market. Linked to this, India is considered one of the world's largest agricultural powers, both in production and consumption. The industrial sector has also gained great expressiveness, highlighting the automotive sector, which has grown significantly, chemical industry, making India the largest exporter of generics in the world, and the textile sector. In recent years, the Indian government has invested heavily in the professionalization of the country, training scientists and professionals from the most diverse areas that have world-wide prestige. Given this, the software industry has enjoyed rapid growth as one of the major highlights of the economy. All this history has given India a favorable business environment, with the country today having a controlled level of inflation, international reserves, manageable government deficit and control of capital.
Sectors per Region
The economic activities are distributed in the Indian Territory according to the potentiality of each region. The north of the country is characterized by fertile land, concentrating much of the agricultural production especially in the Ganges Valley, making India the county with the largest arable land in the world. India's natural riches, such as minerals among others, are concentrated to the east - highlighting the country's water resources. The West concentrates most of the financial institutions that have great expressiveness in the country’s economy, Mumbai being the city that concentrates more activities of this sector. One of the most prominent sectors of India is information technology, and most of the major companies in this sector are concentrated in the south of the country, with Bangalore being one of the main cities of this sector.
Why invest in India
India today stands as one of the most open and credible economies for Foreign Direct Investment (FDI), due to the government's decision in 2016 to implement reforms that further liberalized the economy. The sectors that attract most investments are the following: services, telecommunications, fuels, pharmaceuticals, construction, automotive, information technology, among others. With strong growth rates and a business-friendly environment, India is not only attractive for investments, but is also one of the main international investors. The country today has a fast pace of overseas acquisitions, and Latin America has been a major target for Indian investment.
Sources: World Bank, India Brand Equity Foundation (IBEF), Santander.
Brazil
LOCAL TIME
CAPITAL
Brasília
R$
OFFICIAL CURRENCY
BRL - Real
Macroeconomics Data
1,7 %
per year
8649,95
US$
19.788
Billions of US$
in 2016
12.593
Billions of US$
in 2016
PIB GROWTH RATE
PIB PER CAPTA
EXPORTS TOTAL
IMPORTS TOTAL
Introduction
Brazil has a population of approximately 208 million people, occupying the fifth position in the world ranking of the largest countries (in population) and ninth in the world economy. From 2003 to 2014, the country experienced strong growth and socioeconomic development, with more than 29 million people out of poverty and the level of social inequality has experienced a noticeable slowdown. In addition, the income level of 40% of the poorest population increased by 7.1% and the general population, 4.4%.
Currently, Brazil is experiencing a recession due to falling oil and commodity prices, as well as the slowdown in the Chinese economy, causing a drop in domestic demand and a reduction in investment. The expected is that by the end of 2017, the Brazilian economy, although slowly, will grow 0.5% due to the budgetary adjustments that were made, and the return on investment.
The country has excellent soft power mechanisms, that make it diplomatically recognized and well regarded internationally. One example of this is the country’s leadership in international negotiations related to the environment, where it played a key role in the formulation of the climate of the COP 21 in 2015, the ratification of the Paris Agreement, the hosting of the World Cup in 2014 and the Olympics in 2016, UN peacekeeping missions in Haiti, among others.
Foreign Trade in Brazil represents more than ¼ of GDP, leading the country to be part of the 25 largest exporters and importers in the world, showing excellent economic potential. The country's export focus is mainly on agricultural and food products - such as coffee, sugar, corn and meat -, minerals and oil.
Sectors per Region
Brazil has five producing regions. The North of the country stands out for the vegetal extractivism, with products such as latex, wood and nuts. The mining activity is also expressive, regarding mainly the extraction of iron and copper. The Manaus Free Trade Zone focuses the forefront of national electronics production, such as TV sets, computers, and electronics in general. In the Northeast, tourism and the production of sugar cane predominate. In the Central-West, agriculture (soybean and corn plantations) and cattle raising, region characterize region’s economy as being an essentially agricultural. The Southeast is one of the most promising regions, with the largest industrial park, home to large automakers, steel mills and factories in general, as well as in the agricultural and livestock sector, for the production of sugar cane, coffee and livestock, meat (Brazil is the largest exporter of beef in the world), as well as being the largest producer of aircraft equipment. The oil sector is also very strong in the region. At last, the South of the country, which stands out for the metallurgical, automotive, textile and food sectors.
Why invest in Brazil
Brazil is a country that has abundant natural resources and has a relatively diversified economy. It is considered the world's largest producer of coffee, sugar cane, oranges and beef, as well as being one of the main producers of soybeans. The country attracts numerous multinational groups in the food, biofuel and automotive industries. With forests covering half the national territory and the largest rainforest in the world, Brazil is the world's fourth largest timber exporter. The exploitation of its mineral wealth makes Brazil the second largest exporter of iron and one of the main producers of aluminum and coal. In addition, the country has been increasingly established in the textile, aeronautical, pharmaceutical, automotive, steel and chemical industries.
Sources: World Bank, India Brand Equity Foundation (IBEF), Santander.
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