Brazilian exports to India have experienced a downturn in 2023, with both nations acknowledging the current trade relations as modest.
Subrahmanyam Jaishankar, India’s Minister of External Affairs, expressed a desire for enhanced bilateral ties.
“We have significant political cooperation, with Brazil strongly supporting India in the G20.
What we seek is to deepen our relations further,” said Jaishankar, emphasizing the need for increased tourism, trade, and political collaboration.
Jaishankar highlighted the trade volumes between Latin America and Brazil, noting, “Our trade with Latin America stands at $50 billion, which is substantial.”
He added, “India has $4 billion in investments in Brazil,” highlighting the consensus among Brazilian diplomats for increased bilateral trade.
Feeding its population remains a challenge for India, a nation with 1.4 billion people and a significantly smaller territory than Brazil.
The Indian government distributes 800 million food vouchers monthly to combat hunger, as stated by Piuysh Goyal, Minister of Commerce and Food Distribution.
Soybean oil imports from Brazil are deemed crucial by Indian diplomats to address this issue.
However, exports have decreased, with sales dropping from 1.6 million tons in 2022 to 1.2 million tons last year.
Furthermore, the decline in commodity prices has reduced the sales value from $2.4 billion in 2022 to $1.3 billion in the previous year.
Background
The decrease in Brazilian exports to India, especially soybean oil, and limited trade levels stem from various causes.
Commodity price drops impact exports, alongside shifts in Indian demand, logistical challenges, and economic factors.
Global economic trends and India’s food security strategies also play roles.
Moreover, India’s exploration of other markets due to competitive advantages affects Brazilian exports.
Boosting trade requires both nations to improve policies, lower barriers, and seek common ground for mutual economic benefits.