Brazil and India Trade Boom

India and Brazil on Tuesday decided to forge stronger trade and economic ties and decided to work towards achieving a target of $10 billion bilateral trade over the next few years from the $7.73 billion in 2010.

The total foreign direct investment (FDI) inflows India received from Brazil during April 2000 to December 2010 amounted to $4.55 million. Main sectors for the investment from Brazil were plastic products, manufacture of leather products, allopathic pharmaceutical preparations, data processing, software development and computer consultancy services.

The bilateral Air Service Agreement to increase air connectivity was signed in New Delhi by the minister of overseas Indian affairs and civil aviation, Vayalar Ravi and Patriota. Under the agreement, both countries are allowed designate any number of airlines on reciprocal basis, in a departure from the past when only one airline each was allowed.

Commerce and industry minister, Anand Sharma, said yesterday that the India-Brazil bilateral trade would grow to from $7.73 billion in 2010 to $10 billion in the next few years.

He said this in a statement after his meeting with Antonio Patriota, minister of external relations, Brazil, in New Delhi.

Meanwhile, both countries agreeing to set up a CEOs forum CEOs Forum identified the priority sectors – energy, oil, tourism, pharma, value-added manufacturing, mining and agro-processing. Sharma expressed satisfaction on the signing of an Air Service Agreement between India and Brazil.

According to the minister there existed huge potential for cooperation between the two countries in SMEs, IT, science and technology, engineering, energy, infrastructure and nuclear power.

The issue of imposition of anti-dumping duties on Indian products such as PET films (polyethelene terephthalate), jute yarn, jute bags etc also came up for discussion during the meeting. Sharma pointed out that currently, no anti-dumping duty had been imposed by India on import of any items from Brazil. The minister also raised the issue of flexibility in business visas.