Synergies Unleashed: Exploring the Potential of Brazil-India Trade

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India Business & Trade: IBCC brought a business delegation to India in November. Please share insights on the nature of this delegation and its objectives.

João Paulo Piotto: One of the objectives of the IBCC mission was to lead the delegation of Brazilian government authorities, especially the Honorable Minister Carlos Fávaro, to a meeting with the Honorable Indian Minister Parshottam Rupala to discuss strategic issues, including genetic improvement and ruminant nutrition. Along with Brazilian authorities, the mission also brought together Brazilian businesspeople from various sectors.

Another objective of the mission was to help Brazilian businessmen hold strategic meetings with large Indian companies. Brazilian entrepreneurs also had the opportunity to visit World Food India 2023.

Particularly for my company, Amireia Pajoara, the trip was very important because we signed an MOU with Ananda Dairy, a major producer in the Indian dairy chain. We had a very important meeting with the Chief Minister of Uttar Pradesh, the Honorable Yogi Adityanath, where in addition to presenting our company, we were able to learn about Uttar Pradesh’s investment policy.

All the objectives of the mission were achieved, that is the countries strengthened their economic ties through the meetings of their authorities, and the Brazilian businessmen returned excited and very surprised by the business opportunities that the India-Brazil relationship can provide.

India Business & Trade: What is your view on India’s economic potential and role in the global landscape (vis a vis around 5 years ago), and the potential of the Brazil India trade relationship?

João Paulo Piotto: India has come a long way in the last five years. Its economic growth has caught the world’s attention, because as well as having the largest population in the world, its investment in education, skilled labor and information technology sectors has alerted major powers such as the US and China.

Today the country is making great strides in its infrastructure, which in my opinion is still far from ideal, but has shown rapid and significant progress in recent years. India has played an active and prominent role on the world stage, including BRICS and the G20. All the countries in the world are interested in knowing the next steps that India intends to take towards its economic expansion, an interest that was totally different five years ago.

In recent years, the interest of Brazilian businesspeople in doing business with India and vice versa has grown exponentially. Last year (2022) was a record year for this bilateral relationship, with just over US$ 15 billion being transacted. This success is very much due to the work of both foreign ministries, which has always been very auspicious. On the Brazilian side, I would like to highlight the excellent work that councils like the India-Brazil Chamber has been doing to arouse interest and mediate the relationship between Indian and Brazilian businesspeople.

The perception of Brazilian businesspeople is that the level of reliability in doing business with India is much higher than in other countries. The Indian culture is greatly admired by the Brazilian people, making the commercial relationship between the countries much easier.

I think the future holds even more prosperity, asBrazil and India have expressed mutual have interest in strengthening business ties.

India Business & Trade: What are the key sectors of interest for business collaboration between the two countries in the coming years?

João Paulo Piotto: I believe that they will continue to be strong in the commercial areas of commodities, pharmaceuticals and information technology. But I believe that animal nutrition and human nutrition are two areas that will grow a lot in the coming years.

Animal nutrition in Brazil can contribute a lot to improving the Indian dairy chain by increasing productivity and improving nutritional conditions of cows. It can also contribute to improving the productivity of buffaloes and goats. Today, Brazil is a world reference in animal nutrition for ruminants of all categories.

In human nutrition, these are two countries with totally different cultures, but with the strengthening of their relationship, the synergy can be very great.

I believe it will be a sector with great opportunity to be explored in the coming years. Indian cuisine has a lot to teach Brazilians, especially in terms of health and longevity.

Due to the confidentiality agreement, I cannot share details, but in the coming years, we will be implementing a project, which will be a watershed in the ruminant nutrition sector.

India Business & Trade: Brazil and India are home to highly vibrant and dynamic startup ecosystems. What are the promising areas where startups from both sides are collaborating successfully?

João Paulo Piotto: It’s notable that both countries have excelled in the development of start-ups in all sectors of the economy. In the case of Brazil and India, applications and software developed for wellness and health and e-commerce have stood out a lot, but there is plenty of room for progress. Brazil is evolving more and more in startups that seek solutions to facilitate agricultural production and improve the work of farmers, just as India has been growing a lot in startups aimed at sustainability and renewable energy.

To increase this connection and synergy between startups in both countries, we need to create an environment where both sides can spread their ideas and exchange knowledge. I think this would be possible if we increased the number of workshops and knowledge exchanges. We need to create rules and policies to encourage the creation of startups that are common to both countries, so as not to bureaucratize the whole process and thereby attract international investors.

India Business  & Trade What are the major challenges or barriers to trade and investment proposed from the Brazilian perspective, and potential solutions to overcome them?the Brazilian perspective, and potential solutions to overcome them?
João Paulo Piotto: Indian laws are very different from world trade laws. It has a very high tax on imports and regulatory systems with standards that are totally different from the world’s in some sectors. In the animal feed sector, for example, the rules on ingredients allowed for animal consumption are old and difficult to understand.

India has a large research center, but it doesn’t use it to look for alternative products, which would be of great help to small farmers. Registration and application processes with government agencies need to be faster. While infrastructure has improved a lot in the past few years, there is a lot of room for further enhancement. We are positive of this happening soon, considering the efforts that are being taken.

I believe that a common regulatory agreement, based on scientific evidence from both countries, would be the best way to reduce bureaucracy in the investment and technology transfer process between them. A MERCOSUR-INDIA agreement would be a big step towards developing this trade and expanding trade for everyone involved.

India Business & Trade: Please share your views on possibilities of collaborative initiatives or partnerships that can further strengthen economic ties between India and Brazil. What role can governments and trade & investment promotion bodies play in this direction?

João Paulo Piotto: I believe that both countries have expertise in various sectors. I would highlight agriculture, which in both Brazil and India is well developed and important for the economy. I think that the exchange of technology and knowledge in this sector could be of great value to both sides, including for accessing new markets.

Another important sector is renewable energy, since fossil fuels are no longer the best alternative and both countries have been developing new forms of renewable and sustainable energy. SYNERGY in this sector would bring mutual benefits to the countries involved and bring them much closer to investors.

Finally, I would once again highlight the animal nutrition sector, where Brazil, as a world reference, could greatly help to increase Indian productivity.

With regard to the role of governments and trade and investment promotion organizations, a lot of work is already being done on both sides. I would highlight the work of the India-Brazil Chamber of Commerce, which leads Brazilian business missions to India and promotes commercial activities between the two countries. The number of companies arriving in India every year is only increasing, thanks to this work. The work of both the Indian and Brazilian chancelleries has been intense and auspicious.

Meetings between Indian and Brazilian authorities, organized by promotional bodies and also by the government, are key to strengthening and expanding trade ties between the two countries. The government needs to play an active role in attracting investors and also in mediating conflicts if necessary.