Wednesday, April 15, 2015

India's trade with Brazil increased by 20% in 2014 despite Brazilian economic stagnation

India's trade with Brazil reached a record 11.42 billion dollars in 2014 increasing by 20% from 9.49 bn in 2013. This is impressive considering the fact that Brazilian economy had slowed down in 2014 to a meagre 0.2% growth and the country's imports had declined by 4.46%. The average annual growth since 2010 has been 20%.

India has become the 8th largest trade partner of Brazil in 2014 climbing from 12th position in 2013.

In 2014 India's exports were 6.64 billion and imports 4.79 bn.

India's exports have increased by 50 % from 4.2 bn in 2010 to 6.64 bn in 2014. which had declined from 6.06 bn in 2010. India's main export is diesel which accounted for 3.52 bn ( 53%) of the total of 6.64 bn. Exports of Chemicals, pharma, plastics and rubber products were 1.5 bn with a share of 22%. Engineering products constituted 13% and textiles 8.3% of the exports.

India's imports have increased by 53% from 3.13 bn in 2013 to 4.79 bn in 2014.  Crude oil is the main import ( 49%) followed by raw sugar(13%), soy oil( 7.6%), gold, copper and iron ore. India has started importing gold from Brazil with 278 million dollars in 2014.

In 2015 Brazil is projected to suffer a GDP contraction of 0.9%. The construction and infrastructure projects are expected slow down as a consequence of the ongoing Petrobras corruption scandal in which many private sector companies are also involved.

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