India and Brazil bilateral trade.: President Bolsonaro and Prime Minister Narendra Modi have been a recent hot talk among the citizens of the country now. Before India and Brazil bilateral trade, People have been protesting against Bolsonaro being the Chief Guest on the Republic Day of India, 2020. Amongst this, India and Brazil drew up earnest plans to have a breakthrough in both of the countries’ economies.
Bilateral relations between the two before 2020:-
One of the major causes of tension between the two nations was the decolonization of the Portuguese colonies in India. When the Indians put pressure on the Portuguese to retreat from India, Brazil supported the Portuguese’s claim of Goa. Brazil changed its stand in 1961. When it became evident to them that Indians would be able to take over control of Goa from the weakened Portuguese. In 2009, Brazil sold 100 anti-radiation missiles to Pakistan. Despite the Indians asking Brazil not to. The Indian Embassy opened in Rio de Janeiro on May 3, 1948, moving to Brasília on August 1, 1971. The bipartisan trade in 2007, tripled to USD 3.12 billion from USD 1.2 billion in 2004. In 2016, the trade had increased to USD 5.64 billion. Wipro Technologies also set up a business process outsourcing centre in Curitiba.
Some glimpses into their 21st-century relations:-
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- UNSC reform – The basic philosophy of both countries is that the UNSC should be more democratic, legitimate and representative.
- South-South cooperation – Both India and Brazil are a part of the IBSA initiative ( India, Brazil, South Africa). The first IBSA summit happened in September 2006 in Brasilia, the second in October 2007 in Pretoria and the third in October 2008 in New Delhi. The first one held in 2004 and had covered many areas such as science, technology, education, agriculture, energy, culture, health, social issues, public administration and revenue administration.
- Prime Minister Narendra Modi’s 2014 trip – He visited Brazil in 2014, as a part of his first multilateral visit, the 6th BRICS summit held at North-Eastern beach city of Fortaleza.
Current Bilateral Relations Between The Two Countries:-
The volume of bilateral trade in 2018-20 was USD 8.2 billion which included USD 3.8 billion worth of Indian exports to Brazil and USD 4.4 million as imports by India. A separate pact was acknowledged for cooperation in the field of oil and natural gas while another one was sealed in the bio-energy sector.
“There is significant potential for further strengthening the energy partnership taking into account that India is one of the leading countries in global oil demand growth and that Brazil is expected to sharply increase its oil production in the next decade,” according to a joint statement issued after Modi-Bolsonaro talks.
Apart from oil and gas, the other areas wherein the two countries will cooperate include agriculture, bio-fuels, animal husbandry, science, and technology. “The two sides also agreed to set a target of USD 15 billion in bilateral trade by 2022 given the complementarities between the two economies,” External Affairs Ministry Spokesperson Raveesh Kumar said. The two sides also agreed that there was great potential for increased ethanol production. And uptake in India’s fuel mix and looked forward to furthering collaboration in the area.
Both sides decided that they will encourage their companies to explore ways for promoting investments and cooperation in the upstream, midstream and downstream areas, through sharing of experience including through joint development activities in oil and gas projects in India, Brazil and in third countries.
In the mining sector, the two sides came to terms that mining activities and investments had the potential for bilateral cooperation to flourish.
Social Security Agreement
Prime Minister Narendra Modi invited Brazilian industries to explore business opportunities in India, in food processing, infrastructure, biofuels and other renewable sources of energy. President Bolsonaro called upon Indian industries to identify business opportunities in Brazil’s automotive, leather, oil and gas, including oil refining, and pharmaceutical sectors.
The two countries also signed a social security agreement and said it was an important step to make it easy for the movement of professionals and business persons between India and Brazil.
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