Brazil is emerging as an attractive destination for Indian investors and presents huge potential for South Asias biggest country. South America’s largest economy has a stock of over $ 6 billion of Indian investment. A large country, rich in natural and human resources and with a diversified economy — the ninth largest in the world— Brazil attracted $ 73.5 billion of foreign direct investments last year. Infrastructure stands out as a key area for profitable investments.

Over 50 companies and investors took part at the online event “InfraInvest India-Brazil: Building Bridges, ConnecUng Partners”, organised by the India- Brazil Chamber of Commerce, Rio de Janeiro, with the support of the Embassy of Brazil in India, among others. The event takes forward the commitment of both governments to bolster trade and investment announced during the summit between President Jair Bolsonaro and Prime Minister Narendra Modi here in January 2020.

Bolsonaro was the Chief Guest at India’s Republic Day Parade on 26 January 2020 and was accompanied by a high-level delegation which included eight Ministers, four Members of Parliament, senior officials of the Brazilian Government and members of business community.

During the visit, an Action Plan to Strengthen the Strategic Partnership between India and Brazil was adopted which provides a roadmap aimed at revitalizing ongoing engagements in a focused manner. Fifteen MOUs/ Agreements in diverse sectors that include Investment, Assistance in Criminal Matters, Cyber Security, Oil & Gas, Bio-energy, S&T, Culture, Animal Husbandry, Health and Traditional Medicines were signed. Both sides also discussed other areas of cooperation including Trade and Investments, Defence, Space and areas of Cooperation on global issues of mutual interest.

The leaders agreed on the need to work together more closely in BRICS, IBSA, UN and other international fora, including fight against Terrorism.

During the discussions, participants pointed out that India and Brazil stand to gain from working together to unlock the business opportunities in the infrastructure sector.

Ambassador of Brazil to India, André Aranha Corrêa do Lago, said, “Brazil wants to be a partner of India in its path towards green recovery.” Corrêa do Lago recalled the recent progress on investment facilitation and avoidance of double taxaUon, which support mutual investment flows.

He further commended InvestIndia and Apex-Brazil for their active partnership in bringing businesses closer. He also stressed the potential of closer cooperation in bioenergy.

Ambassador of India to Brazil, Suresh K. Reddy, pointed out that, “Indian investors in Brazil found their experience to be really good” as they have seen that business environment is very transparent, efficient and effective. Reddy also stressed that Indians are the best partners for developing projects in Brazil, since they have succeeded in a home market with challenges similar to Brazil’s before going global.

Fábio Rogério de Carvalho, Director, Ministry of Infrastructure of Brazil, highlighted the well-functioning business environment in the country. “Brazil became the world’s 4th destination of FDI in 2019,” he stressed. Investments are further attracted by a recent reforms to improve the business environment and also by Brazil’s Investment Partnership Programme, Carvalho added.

Anil Kishora, Vice President & Chief Risk Officer, New Development Bank (NDB) stated that the NDB has established its relevance in the investment landscape during the current global crisis by ensuring a speedy response to the pandemic and to recovery-related funding. “So far, the NDB has approved 65 projects aggregaUng about USD 21 billion; by the end of this year, total approval should surpass USD 25 billion.”

Kishora also said that by year end the Bank would have $ 5 billion of funding in Brazil.

Bilateral trade between India and Brazil was at $ 8.2 billion in 2018-19, according to MEA statement. This included US$ 3.8 billion as Indian exports to Brazil and $ 4.4 million as imports by India from Brazil. Major Indian exports to Brazil include agrochemical, synthetic yarns, auto components and parts, pharmaceuticals and petroleum products. Brazilian exports to India include crude oil, gold, vegetable oil, sugar and bulk mineral and ores.

A plethora of sectors have witnessed investments between India and Brazil. While the Brazilian companies have invested in automobiles, IT, mining, energy, biofuels, footwear sectors in India, the Indian companies have invested in such sectors as IT, Pharmaceutical, Energy, agri-business, mining, engineering and automobiles. On the investment front, there were robust Indian investments in Brazil.