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FOREIGN TRADE
Brazil and India strengthen trade relations in recent years
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With a population of 1.4 billion people and the world’s fifth-largest economy, India has been consolidated as one of the major destinations for Brazilian exports - Credit: Ricardo Stuckert/ PR
The Brazilian Trade and Investment Promotion Agency (ApexBrasil) launched on August 12 the Trade and Investment Profile - India, highlighting the growing commercial opportunities between Brazil and India and revealing new paths to strengthening bilateral economic relations.
With a population of 1.4 billion people and the world’s fifth-largest economy, India has been consolidated as one of the major destinations for Brazilian exports. Between 2003 and 2023, the Asian country moved up from the 26th to the 13th largest destination for Brazilian exports, reflecting an average annual growth in exports to India of 14.3%, which is higher than the growth of Brazilian exports to the rest of the world, at 11.3% during the same period.
In 2023, Brazilian exports to India totaled USD 4.7 billion, with a highlight for the sales of vegetable fats and oils, sugars and molasses and crude oils. However, there is a challenge in diversifying Brazil's export portfolio, as the three main products account for 66.8% of exports.
The study elaborated by ApexBrasil shows 387 commercial opportunities for Brazilian products in the Indian market. These opportunities encompass strategic sectors such as mineral fuels, raw materials, machinery and transport equipment, chemicals, manufactured goods and food products.
Additionally, ApexBrasil is leading nine sectorial projects focused on India in the sectors of food and beverages, housing and construction, fashion, and health, aiming to diversify and expand the Brazilian presence in the Indian market.
ACCESS TO THE INDIAN MARKET - Less known, the Preferential Trade Agreement (PTA) between Mercosur and India came into effect in 2009, with immediate tariff elimination. Although there is room for expansion, the Agreement covers, on the Indian side, 450 lines with preference margins of 10% (93 items), 20% (336 items), and 100% (31 items). On the Mercosur side, the Agreement covers 452 tariff lines, with preference margins of 10% (394 items), 20% (45 items), and 100% (13 items).
Regarding market access, the Profile highlights that the Ministry of Agriculture, Livestock, and Supply (Ministério da Agricultura, Pecuária e Abastecimento - MAPA) has recently announced the opening of the Indian market for a range of Brazilian products: açai juice, açai powder, avocado fruit, farmed fish, and wild-caught fish. More information can be found in the publication.
INVESTMENTS - On investments, the study reveals that the stock in Foreign Direct Investment (FDI) from India in Brazil has reached USD 3 billion in 2022, the largest amount registered in the historical series. Despite this growth, Brazil is still not one of the main destinations for Indian investments, but the continued increase indicates a significant potential for the coming years.
India’s growth as a global economic power, associated with ApexBrasil’s strategies for market promotion and opening, highlights a promising future for strengthening the trade and investment relations between Brazil and India.
Follow this link to download the study and have access to the detailed information.