India, Brazil talk trade ties, global economic slump

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Aiming to treble bilateral trade to $10 billion mark by 2010, India and Brazil on Wednesday discussed ways to help the developed world tide over the economic slowdown. Goldman Sachs, in its report, had said the four Bric (Brazil, Russia, India, China) economies would be the major drivers of the world economy by 2050.

Apart from reviewing the global economic slowdown, commerce and industry minister Kamal Nath and Brazilian minister of development, industry and foreign trade Miguel Jorge also had talks on how India and Brazil can maintain their growth to avert deeper crisis in the world economy.

“In the face of slowdown in global economy, India and Brazil have to play the role of engines of growth. It is not only important for India and Brazil but also for the world economy,” Nath told reporters after the meeting.

India and Brazil are also the leaders of the Group of 20, a pressure alliance of the developing countries in the World Trade Organisation, working for a balanced multilateral Doha trade deal.

“India and Brazil must continue to be close partners in the UN, WTO and international forum on issues such as social development, health care, sustainable economic development and poverty alleviation,” Nath said.

He said the two countries are together in “reformulating the big questions that affect foreign policy and trade at the international level”.

From just $488 million in 2000, India’s trade with Brazil has jumped to $3.12 billion in 2007.

The business cooperation increased in sectors like information technology and bio-technology. Besdies, almost all the major Indian pharmaceutical firms have established their presence in Brazil with supply of generic drugs, finished formulations and establishment of manufacturing units. Ranbaxy and Strides Labs have turnover of $40 million each from Brazil. India is also looking to Brazil for cooperation in production of bio-fuel, ethanol. Jorge also met petroleum and natural gas minister Murli Deora.

Besides, facing a shortage of edible oil and high inflation, India said it is looking to Brazil, the major producer of soya oil, to tide over the crisis.

“Brazil has strength in agriculture. We are facing food crisis and there is crisis of soya oil. We have to create new partnership between India and Brazil,” Nath said.

Government had slashed duties on import of palm oil and few other varieties of cooking oil but not on soya oil. However, it has indicated that the duties on soya oil may also be cut to improve the supplies in the domestic market.