Brazil’s trade relations with India have witnessed a ten-fold increase in the last decade and expected to reach $ 15 billion by 2015, with exports of $5.04 bn and imports of $5.58 billion close to 10 times increase in the last ten years.
Talking to FE, an official in the Indian embassy Brazil said,”These numbers include $ 2 bn in export of Diesel and $3.4 bn Indian import of crude oil. So in 2012,$5.4 bn accounts for oil trade out of total $10.6 bn – over 50%. And,76 % of Indian imports from Brazil were crude oil,sugar and soya.”
Adding,” The good news is the increase in pharmaceutical,fertilizers and chemicals exports to Brazil from India which together is now close to $ 1 billion. Auto components and electrical and mechanical equipments have also seen good growth,so have textiles and fibres exports. While oil trade has different dynamics,rest of the products have seen good growth.”
Brazils Ambassador to India,Carlos Duarte has at various fora highlighted the growing cooperation between the two developing powers in various fields including agriculture,science and technology,energy,education,defence,environment.
According to former ambassador R Viswanathan, “India’s bilateral trade with Brazil 20 years ago in 1992 was just $ 177 million. Then ten years back,in 2002,it was $1.2 billion,with India’s exports to Brazil declining in 2012 to $ 5.04 billion dollars from $ 6 billion in 2011.”
Current data indicates that 41 % of India’s exports ( $2.1 billion) in 2012 were diesel exported by Reliance and the fall in India’s exports in 2012 is due to the 33% decline in exports of diesel.
The former diplomat goes on to add,”The second biggest export was chemicals and pharmaceuticals which amounted to $ 697 million. The third largest export item was polyester yarn $ 225 million. Autoparts exports were $106 million. Apart from these items,the exports are well diversified with a wide range of engineering products and industrial raw materials besides textiles and traditional items. Surprisingly coal was an important export $99 million.”
Sugar ( imported by Renuka Sugar ) was the second largest import- $500 million,accounting for 9 % of total imports. Soya oil imports were $ 364 million and Copper imports were $ 294 million.
The two countries have also inked a deal worth $ 210 million for the supply of three aircraft by 2014. This includes a comprehensive logistic package that entails training,technical support,supply of spare parts and ground support equipment for Embraer aircraft equipped with Indias first-ever airborne Active Electronic Scanned Array (AESA) radar,giving it the capability to detect missiles and hostile fighters at all angles.
Of the total bilateral trade of $10 billion Reliance alone accounted for $5.5 billion with their import of crude oil and export of diesel. India is expected to increase its imports of crude oil in the coming years,given the increasing capacity of Brasil to produce more oil and the ever-increasing dependence of India on imported oil.
“The Indian exports of chemicals,pharmaceuticals,engineering and other manufactured products as well as industrial raw materials will continue to increase steadily with the intensification of export promotion by the Indian exporters who are targetting Brasil as a large and growing strategic market,” points out Viswanathan.
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