India and Brazil set to double bi-lateral trade USD 15 billion by 2022 says Mr. Patriota, Consul General of Brazil in Mumbai

by Suman Gupta

India and Brazil are set to accelerate the bi-lateral trade and investment in the next three years.  Mr. Bolsonaro, Hon’ble President of Brazil to India, in his recent visit to India has released a joint statement with Mr. Narendra Modi, Hon’ble Prime Minister of India, to enhance the trade and investment in the areas of oil and gas bio-energy, cyber security, science and technology, mineral resources and animal husbandry along with dairy products.  Both countries signed 15 MoUs to this effect.  As you are aware, the MERCOSUR, South America’s common market comprises Brazil, Argentina, Uruguay and Paraguay, signed a preferential trade agreement with India in 2004.  It has been agreed during the presidential visit that preferential duties covered by that agreement with India will increase from a list of goods currently at 450 tariff items to over 2000 items.  Negotiations for this significant expansion of preferential trade will accelerate as of now”, said Mr. Patriota, Consul General of Brazil in Mumbai, in an interactive meeting on ‘Doing Business with Brazil’ jointly organized by World Trade Center Mumbai, All India Association of Industries, Consulate General of Brazil in Mumbai and India Brazil Chamber of Commerce at World Trade Center Mumbai.

India and Brazil are focusing on improving their cooperation in environmentally preferable technologies to reduce impact on climate change.  Brazil is world’s largest producer of sugarcane and has developed technologies to produce sugar-based ethanol.  Mr. Patriota said that Maharashtra being India’s second largest sugarcane producer can look forward to adopt these technologies for fuelling low emission ‘flex-cars’ that can run both on gasoline or ethanol, interchangeably.  The other areas of cooperation between Brazil and India particularly Maharashtra are electric motors, steel, banking, retail automation and mining.

Mr. K. P. Bakshi, Chairman, Maharashtra Water Resources Regulatory Authority (MWRRA), provided a brief overview of Maharashtra with respect to agriculture and water resources and its effective regulation.   He stated, “While Maharashtra has four prominent river basins with the Sahyadri range has access water while the Godavari basin has water scarcity. The MWRRA is looking forward to adopt a technology with less energy consumption with optimum utilization of available resources. There are huge opportunities for Brazilian companies in micro irrigation, sewage treatment of urban and industrial waste as well as equalizing the available dam water in Marathwada.  The combine cost of these products is approximately INR 3000 crores.”  Further, Maharashtra also offers opportunity in agriculture infrastructure, cold storage, market linkage and retail in vegetables, fruits, pulses and other agriculture produce.

Mr. Leonardo Ananda Gomes, President, India Brazil Chamber of Commerce and Honorary Consul General of India in Minas Gerais gave a brief overview of the Chamber and its role in promoting cooperation between Brazilian and Indian companies.  He said, “Brazil is becoming a gateway for Indian companies to Latin America.  The Chamber has 44 Indian companies presently operating in Brazil and 64 Brazilian companies with interest in India.  The number is rapidly increasing and the Chamber has opened its third office in Rio de Janeiro.  In my second visit to India in last 4 years, we are experiencing growing interest of Indian companies in Brazil and we are committed to use the Chamber’s infrastructure to facilitate the same.”

Earlier in his welcome address Capt. Somesh Batra, Vice Chairman, World Trade Center Mumbai, informed the august gathering about the rising proximity between India and Brazil as well as cooperation in strategic sectors such as oil extractions, renewable energy, agro processing and defense industries.  India’s total trade with Brazil is approximately USD 8.2 billions in 2018-19 in favour of Brazil.  Brazil’s strong dependence on oil and gas has put the country in a dominating position in bi-lateral trade.  In the last few years the trade between Brazil and China have increased from USD 4 billions to USD 100 billions.  Indian companies must take advantage of the cultural similarities and expand their business with Brazil beyond services sector.

Mrs. Erika Patriota, Deputy Consul General of Brazil in Mumbai, thanked World Trade Center Mumbai for hosting the business delegation and shared details of Brazilian companies in Maharashtra especially in waste water treatment.  She further offered to facilitate interaction between the Brazilian companies and MWRRA for cooperation.