The Hindu Business Line : India, Brazil target $10-b bilateral trade by 2010

Ringside view
Lula sees potential in exchanging technology, engineering capabilities.
Asks Indian entrepreneurs to directly invest in infrastructure projects there.
Trilateral arrangement among India, Mercosur, South Africa Customs Union on way.

BIZ TALKS: The Commerce and Industry Minister, Mr Kamal Nath, with the Minister for Development Industry and Foreign Trade of Brazil, Mr Miguel Joao Jorge Filho, and the Ranbaxy Laboratories CEO, Mr Malvinder Mohan Singh, at a meeting in the Capital on Monday. - R.V. Moorthy

New Delhi June 4 India and Brazil need to create a world market by supporting each other, and need the private sector to cooperate in this effort, said the President of the Republic of Brazil, Mr Luiz Inacio Lula da Silva.

"India-Brazil bilateral trade relation has the potential to achieve the target of $10 billion by 2010 and can also go beyond the target," said Mr Lula da Silva at a meeting organised jointly by industry chambers CII, Assocham and FICCI.

He said Brazil was running a programme with a focus on development of infrastructure, and Indian entrepreneurs could directly invest in the infrastructure sector.

India and Brazil have not even identified 10 per cent of the bilateral trade opportunities and there is a lot of potential in the exchange of technology and engineering capabilities. Brazil can contribute to India's agricultural sector whereas India can provide pharmaceutical technology to Brazil, he said.

Earlier in the day, the Prime Minister, Dr Manmohan Singh, and Mr Lula da Silva, formed the CEO's forum to include business communities of both the countries to achieve a trade level of $10 billion by 2010.

Preferential trade pact

Referring to the partnership between India and Mercosur, of which Brazil is a part, Mr Kamal Nath, Minister of Commerce and Industry, said: "India and Mercosur have agreed to give tariff concessions, ranging from 10 per cent to 100 per cent, to the other side on 450 and 452 tariff lines respectively. The Preferential Trade Agreement (PTA) will come into force as soon as it is ratified by the legislatures of Brazil and Argentina."

In the meanwhile, said Mr Nath, the process of expansion of the coverage of the PTA has also been initiated. "I hope the operationalisation of the PTA will help achieving the target of $10 billion two-way trade in years to come," he said.

A trilateral arrangement among India, Mercosur and South Africa Customs Union is also on the way to widen the scope of South-South cooperation, Mr Nath added.

Opportunities

Mr Miguel Joao Jorge Filho, Minister for Development Industry and Foreign Trade, Brazil, said that Brazil and India have a huge business opportunity in pharmaceuticals, bio-fuels, IT, food processing, automobile parts, mining, civil aviation, medical equipment, infrastructure and railway equipment.

Mr Anand Sharma, Minister of Sate for External Affairs, said that India and Brazil share a strong bilateral trade relationship and have a global dimension.

The CEO forum have accepted the challenge of growth set by the leaders of Brazil and India where both the countries should play their rightful role in the developing countries, he added.

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