India, Brazil set target of USD 15 billion in bilateral trade by 2022

>>>>Ink 15 pacts; unveil action plan to broadbase ties

26/01/2020

NEW DELHI, Jan 25: Hit by economic slowdown, India and Brazil on Saturday drew up an ambitious plan to boost their stuttering economies by significantly expanding cooperation in key sectors like oil, gas and mining, while setting a target of USD 15 billion in bilateral trade by 2022.
The decisions were taken during wide-ranging talks between Prime Minister Narendra Modi and Brazilian President Jair Messias Bolsonaro. On Brazil approaching the WTO against India for extending support to sugarcane growers, sources said it was agreed to address the issue through bilateral consultations.
The two leaders recognised that there were great synergies between India and Brazil, the two large economies with a combines GDP of around USD 4.5 trillion and having a total population of 1.5 billion. The volume of bilateral trade in 2018-10 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. The two sides inked an investment cooperation and facilitation treaty providing for a framework to increase trade and investment in high growth areas.
A separate pact was inked 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.
It said the two leaders committed to explore ways of deepening bilateral relations in the energy field.
Apart from oil and gas, the other areas identified for expansion of cooperation included agriculture, bio-fuels, animal husbandry, health and 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. In the talks, the two sides also agreed that there was a great potential for increased ethanol production and uptake in India's fuel mix and looked forward to further collaboration in the area.
It was decided that both sides 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.
"It was noted that Indian oil and gas sector offers investment opportunities to Brazilian companies in exploration and licensing of upcoming fields, operationalization of already discovered fields and related projects," the joint statement said.
In the mining sector, the two sides agreed that mining activities and investments offered a significant potential for enhancing bilateral cooperation in this sector.
During the talks, Prime Minister Modi invited Brazilian industry to explore business opportunities in India in infrastructure, food processing, bio-fuels and other renewable energy sources, animal husbandry and agro sectors.
President Bolsonaro also called upon Indian industry to identify business opportunities, including in Brazil's automotive, leather, oil and gas, including oil refining, and pharmaceutical sectors. The two leaders also welcomed the signing of a social security agreement and hailed it as an important step to facilitate movement of professionals and business persons between India and Brazil.
"Both leaders emphasized that World Trade Organization as a central element in supporting growth in developing countries. Recognizing the complementary nature of trade and investment, they also agreed that established bilateral mechanisms could be suitably utilized to stimulate greater cooperation," said the joint statement. The two sides also agreed to cooperate in the field of animal husbandry.
However, India and Brazil on Saturday inked 15 agreements to ramp up cooperation in a wide range of areas and unveiled an action plan to further broadbase strategic ties after talks between Prime Minister NarendraModi and Brazilian President JairMessiasBolsonaro.
In the action plan, the two countries have set specific goals for deeper cooperation in areas of defence and security, trade and commerce, agriculture, civil aviation, energy, environment, health and innovation and vowed to work together to conclude an agreement to deal with international terrorism.
The major focus of the talks was on boosting bilateral trade and investment as both the large economies were hit by global economic slowdown. The 15 agreements will provide for cooperation in a wide range of areas including oil and gas, mineral resources, traditional medicine, animal husbandry, bioenergy and trade and investment.
"Your visit to India has opened a new chapter in ties between India and Brazil," Modi said, summing up the outcome of his talks with Bolsonaro.
Calling Brazil a valuable partner in India's economic growth, the prime minister said both the countries have been on the same page on various global issues and exuded confidence that the ties will strengthen further.
"Despite geographical distance, both India and Brazil are together on various global issues as there is convergence in our views," Modi said in his media statement in the presence of Bolsonaro. The prime minister said focus is being given to new ways of boosting defence industrial cooperation. "We want to have broad-based cooperation in defence," he added.
On his part Bolsonaro said the two countries have further consolidated the already strong ties by signing 15 agreements which will provide for cooperation in a range of areas. According to the action plan, the two countries will encourage greater collaboration between their defence industrial bases and work together to conclude an agreement in combating international terrorism and transnational organised crime.
It mentioned that the two sides will strengthen established institutional mechanisms and promote coordination on bilateral, plurilateral and multilateral issues of mutual interest based on the principles of equality and trust.
Bolsonaro arrived here on Friday, accompanied by his daughter Laura Bolsonaro, daughter-in-law Leticia Firmo, eight ministers, four members of the Brazilian parliament and a large business delegation.
The Brazilian president will grace the Republic Day Parade as chief guest on Sunday. Earlier, the Brazilian president was given a ceremonial welcome at the RashtrapatiBhavan in the presence of President Ram NathKovind and Modi.
India's ties with Brazil, the largest country in Latin America, have been on an upswing in the last few years. The country has a population of 210 million with USD 1.8 trillion economy. This is the first visit of President Bolsonaro to India.
The volume of bilateral trade was USD 8.2 billion in 2018-19. This included USD 3.8 billion worth of Indian exports to Brazil and USD 4.4 million as imports by India.
Both the governments feel there is a huge potential to enhance bilateral trade further. Major Indian exports to Brazil include agro-chemicals, synthetic yarns, auto components and parts, pharmaceutical and petroleum products. Brazilian exports to India include crude oil, gold, vegetable oil, sugar and bulk mineral and ores. Indian investments in Brazil were around USD 6 billion and Brazilian investments in India are estimated at USD 1 billion in 2018.

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