While Jair Messias Bolsonaro became the third Brazilian President to attend the Republic Day celebration of India as Chief Guest following Fernando Henrique Cardoso in 1996 and Luiz Inacio Lula da Silva in 2004, the message that India wants to convey to the world is that it is also with the BRICS nations. It is significant that Prime Minister Narendra Modi has met President Bolsonaro thrice in last eight months.
Brazil, Russia, India, China and South Africa (BRICS) had met in Goa on October 15-16, 2016 in Goa, the eighth BRICS Summit, which was held under the theme “Building Responsive, Inclusive and Collective Solutions.” Soon after this Summit, in a joint declaration, all the BRICS nations emphasised the importance of further strengthening BRICS solidarity and cooperation based on our common interests and key priorities to further strengthen our strategic partnership in the spirit of openness, solidarity, equality, mutual understanding, inclusiveness and mutually beneficial cooperation. They all agreed in 2016 that emerging challenges to global peace and security and to sustainable development require further enhancing of their collective efforts.
Bolsonaro, who has already made his outreach programmes in the US, Europe and China, is now looking towards India. Indo-Brazil bilateral trade during 2018-19 stood at $ 8.2 billion, which included $ 3.8 billion worth of Indian exports to Brazil and $ 4.4 million as imports by India. India’s investments in Brazil were around $ 6 billion and Brazilian investments in India are estimated at $ 1 billion in 2018. Brazilian investments in India are mainly in automobiles, IT, mining, energy and bio-fuel sector while India has invested in Brazil’s IT, pharmaceuticals, energy, agri-business, mining and engineering.
In fact, India and Brazil on Saturday signed 15 agreements to cement cooperation in areas ranging from energy and trade and investment to cyber security and information technology after talks between visiting Brazilian President Bolsonaro and Prime Minister Narendra Modi. The two countries also unveiled an action plan to further expand strategic ties and also acknowledged the great synergies between India and Brazil which were two large economies with a combined GDP of around $ 4.5 trillion and having a total population of 1.5 billion.
Both India and Brazil agreed on Saturday to set a target of $ 15 billion in bilateral trade by 2022 given the complementarities between the two economies. A separate pact was signed for boosting cooperation in the energy sector, oil and natural gas, with another signed in the area of bio-energy.
The main items of export from India to Brazil are diesel, organic chemicals and pharmaceutical products, man-made filaments, nuclear reactors, boilers, machinery and mechanical appliances, textile products (synthetic filaments, fibres, cotton, apparels, accessories etc.), while the main items of Brazilian exports to India were petroleum products, mainly crude oil, cane sugar, copper ore, soya oil and gold. For both the countries all such items are extremely important for their economic progress.
The two leaders also identified animal husbandry as another area for cooperation as there was a common genetic heritage in cattle in India and Brazil and agreed to collaborate in assisted reproductive technology that is expected to help increase dairy production in India. Along with it a decision to set up a Centre of Excellence in cattle genomics in India with Brazilian assistance was taken. This shows that a deep and thorough advance research has been done by both the countries to make it happen.
Since India and Brazil had established diplomatic relations in 1948 it has taken almost seven decades to bear its fruits. The long bilateral strategic partnership is based on a common global vision, shared democratic values, and a commitment to foster economic growth with social inclusion for the welfare of the people of both countries.
However, it would be naive to presume that Brazil is unaware that India at present is facing a severe slowdown in the economy but despite all that Brazil has been able to sign 15 agreements at the behest of its own international equations with US, China and countries in Europe. Diplomatic skills have played a major role, but all such agreements will take time to realise on ground and the way the Indian economy is sliding, it needs a quick solution. Budget is close and all eyes are now on the North Block at Union Finance Minister’s office.
