India, Brazil sign 15 pacts, agree on joint action plan

Our Bureau New Delhi | Updated on January 25, 2020

Prime Minister Narendra Modi and Brazil's President Jair Messias Bolsonaro arrive for a meeting at the Hyderabad House, in New Delhi, Saturday, Jan. 25, 2020.

Modi, Bolsanaro hold wide ranging talks on trade, defence, strategic partnership

India and Brazil agreed on an action plan to strengthen bilateral partnership and signed fifteen pacts in sectors ranging from agriculture to energy following talks between Prime Minister Narendra Modi and Brazilian President Jair Bolsonaro in New Delhi on Saturday.

Bolsanoro, who is on a four-day visit to India heading a high-powered delegation comprising eight Ministers, senior officials and several business representatives, will be the Chief Guest at India’s Republic Day celebrations on Sunday.

The two leaders agreed on an action plan to strengthen the bilateral partnership between India and Brazil. The plan provides for following up in a coordinated manner the outcomes and activities of the existing institutional mechanisms and the implementation of cooperation initiatives in all areas of bilateral relations, according to an official release.

"Your visit to India has opened a new chapter in bilateral ties between India and Brazil," Modi said in his media statement after the bilateral meeting. The Indian PM added that Brazil was a valuable partner in India's economic growth and both the countries were together on various global issues despite geographical distance.

Bolsonaro said the two countries have further consolidated already strong ties by signing 15 agreements providing for cooperation in a range of areas.

Other important areas covered by the agreements signed on Saturday include health, bio-energy cooperation, cultural exchange, geology and mineral resources, animal husbandry and science & technology.

As per the action plan, all the new goals identified by the two sides to strengthen ties as well as the existing mechanisms would be grouped in six major thematic areas: political and strategic coordination; trade & commerce, investments, agriculture, civil aviation and energy mechanisms; science, technology and innovation, space cooperation, environment and technical cooperation, health mechanisms; defence and security mechanisms; culture and education mechanism; consular issues, social security and legal cooperation mechanism.

As the main mechanism for high-level political dialogue and cooperation between the two countries, the India-Brazil Joint Commission for Political, Economic, Scientific, Technological and Cultural Cooperation shall be the main forum for monitoring the implementation of the action plan of the strategic partnership.

 The Joint Commission will convene every two years and will evaluate the bilateral cooperation in all areas in accordance with the present action plan. New institutional mechanisms that might be established to meet the demands of the bilateral relations will be framed in accordance with the present action plan, the statement added.

Modi said that there was a high potential for growth in bilateral trade, and as developing countries, India and Brazil shared similar views on multi-lateral issues including terrorism. Focus is also on increasing defence industrial cooperation.

Bilateral trade between India and Brazil increased to $8.2 billion in 2018-19, It comprised $3.8 billion of Indian exports to Brazil and $4.4 million as imports by India. Major Indian exports to Brazil include agro-chemicals, synthetic yarns, auto components and parts, pharmaceuticals and petroleum products. Brazilian exports to India include crude oil, gold, vegetable oil, sugar and bulk mineral and ores.

Indian investments in Brazil were at around $6 billion and Brazilian investments in India are estimated at $1 billion in 2018, as per government figures. Brazilian investments in India are mainly in automobiles, IT, mining, energy and biofuels sectors. India has invested in Brazil's IT, pharmaceutical, energy, agri-business, mining and engineering sectors.

Published on January 25, 2020

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