Trade Articles

The India's Union Minister of Commerce and Industry, Mr. Kamal Nath has reiterated the importance of trading relations with Brazil during his bilateral meeting with the Brazilian Minister for Development Industry and Foreign Trade, Mr. Miguel Jorge. He states down the realization of India towards the imperative role of Latin America and Caribbean and for this the Indian government has started out a special programme, FOCUS LAC for promoting the trading relations between India, Latin America and Caribbean."Brazil being the largest trading partner in Latin America has special importance for India. Over the years, Brazil has emerged out as our biggest partner in the LAC region with our bilateral trade crossing 3 billion marks in 2007. Bilateral trade has jumped to US$ 3.12 billion in 2007 from merely US$ 488 million in 2000. However, I feel that considering the huge opportunities of mutual interests, the volume of trade is still low and it could be enhanced manifolds by efforts of governments and trade bodies of our two countries. In the recent India-Brazil Joint Commission Meeting in April 2007, both the governments have set a target of US$ 10 billion by 2010 and we are working towards achieving this target" further added by the ministry.

In view of the investments, Mr. Nath has asserted added that the "Our mutual investments have also increased in recent years, particularly in the field of information technology, biotechnology and pharmaceuticals. The Indian pharmaceutical companies have made a success story with their entry in Brazil. Almost all the major pharma players of India have established their presence in Brazil with supply of bulk drugs, finished formulations and establishment of manufacturing units and joint ventures. Areas of mutual interests between our countries cover pharma, aviation, engineering products, agriculture based industries including equipments and food processing industries, energy including ethanol, chemical products, auto parts and vehicles and two wheelers, IT, banking and urban infrastructure. South-South cooperation is an integral part of our bilateral relationship. India and Brazil have demonstrated their determination in reformulating the big questions that affect foreign policy and trade at the international level. India and Brazil must 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."

From the past few years, Brazil has emerged out as the biggest partner of India in the Latin American region. Merely from US$ 488 million, bilateral trade between Brazil and India have witnessed the quantum increase and has crossed the mark of 3 million in 2007. Both the governments have set out the target of achieving US$0 billion mark in next 2 years i.e, 2010 and have already started working in achieving the set standards. On the context of the MERCOSUR, which is the regional trade agreement between Argentina, Brazil, Paraguay and Uruguay, the commerce union minister has said that the "India and MERCOSUR have agreed to give tariff concessions, ranging from 10% to 100% to the other side on 450 and 452 tariff lines respectively. The PTA will come into force as soon as ratified by the legislatures of Brazil and Argentina. Meanwhile the process of expansion of the coverage of the PTA has also been initiated in persuasion of the IBSA Declaration made by the Heads of India, Brazil and South Africa on September 13th 2006.". Shri Kamal Nath expressed the hope that "thehe operationalization of PTA will help achieving the target of 10 billion two-way trade in years to come". In recent years more and more investments have been directed from the India to the Brazil, especially in the areas of information technology, biotechnology and pharmaceuticals. Many Indian companies like Tata Consultancy Services, Ranbaxy and Dr. Reddy's Laboratories etc, are striding towards making a mark in the Brazilian marketplace. TATA is also paving its footprints for exploring new avenues in the Brazil.