Brazil is one of the most important trading partners of India in the entire LAC (Latin America and Caribbean) region. India-Brazil bilateral trade has increased substantially in the last two decades. However, the global drop in commodity prices and the economic recession in Brazil started in 2015 affected Brazil’s overall trade. Consequently, the negative impact was felt in bilateral trade as well when it came down to USD 7.9 Billion and USD 5.64 Billion in years 2015 and 2016 respectively. However, with slight recovery in Brazilian economy in year 2017, the bilateral trade between India and Brazil rose to USD 7.6 Billion with growth of 34.71%, the highest growth among the top 10 trading partners of Brazil. Indian exports to Brazil and imports from Brazil stood at US$ 2.94 Billion and US$ 4.66 billion respectively with India having a trade deficit of USD 1.7 Billion. In the ranking for the largest trading partners of Brazil, India rose to 10th position from 11th position in year 2016. Diesel imports from India, which used to form 40-50% of the export basket, has seen a continuous slump since 2014. It further declined in both volume and value terms in year 2017 when India exported 76 million kg worth USD 43 Million (1.46% share) as against 465 Million kg worth USD 169 Million in the last year, resulting in a humongous decline of -74.67% in dollar terms y-o-y. This resulted in slipping to 8th spot as top exporters of diesel oil to Brazil from 2nd position in year 2016. The other prominent export items from India were organic chemicals and pharmaceutical products valued at USD 1.19 Billion, Man-made filaments worth USD 249 million and Nuclear reactors, boilers, machinery and mechanical appliances worth USD 247 Million. The other important export items included textile products (synthetic filaments/fibres, cotton, apparels, accessories etc.) which amounted to US$ 454 million. Brazilian exports to India were also weighed in favour of Petroleum products, mainly crude oil of worth USD 1.5 Billion. India also imported cane sugar worth USD 924 Million, copper ore worth 482 million, soya oil worth US$ 377 million and gold worth US$ 157 million.
Trade Figures – 2017
(USD in Billion)
Brazil’s overall trade with the world showed sign of recovery with 14% growth in year 2017. This also affected India-Brazil bilateral trade positively showing a remarkable growth of 35% in the year which was also the highest bilateral trade growth amongst the top trading partners of Brazil despite of the fact that a negligible quantity of diesel oil, which used to form between 40-50% of India’s total exports to Brazil, was exported to Brazil during the period. The improved trade also resulted in India’s gaining a spot to rise to 10th position among the top trading partners of Brazil.
A plethora of sectors have seen investments between India and Brazil. While the Brazilian companies have invested in automobiles, IT, mining, energy, biofuels, footwear sectors in India, the Indian companies have invested in such sectors as IT, Pharmaceutical, Energy, agri-business, mining, engineering and automobiles. On 21 February, 2018, an important business event organized in the Embassy brought together prominent businesses from both sides for a B2B interaction exploring the opportunities of enhancing bilateral investments.