BILATERAL TRADE INDIA BRAZIL
Trade between Brazil and India grew by 22.8% per year, alternating periods of expansion and contraction, over five years from 1992-1996. Such expansion is superior to that experienced in the commercial exchange between Brazil and Asia, which was 19.6% per year over the same period. Within Asia in 1994, year of improved performance of trade between the two countries, India ranked as the fifth largest trading partner of Brazil and accounting for some 5% of Brazil's trade with the continent. However, the volume of trade between Brazil and India appears to be inexpressive, representing less than 1% in total foreign trade of Brazil.
The concentration of the export basket to India according to the goods
Only two chapters of the Mercosur Common Nomenclature - NCM, comprising basically oil and soybean oil, accounted for 75.82% of Brazilian exports to India in 2002: Chapter 27 - fuel, oils and mineral waxes, accounting for 51, 01% of exports; and Chapter 15 - Fats oils waxes animal / plant origin, with 24.81%.
The exports of the Brazil:
Organic chemicals, diesel oil, pharmaceuticals, plastic and rubber products, capital goods, electrical and electronic products, extracts and tinctures for tanning, essential oils, gum and lacquer, iron and steel, textiles, tea, spices, fats and oils vegetables, polyester films, stationery, glass products, raw hides and agricultural products.
The concentration of the agenda of Brazilian imports from India under the goods
Only three chapters of the NCM, dealing mainly of petroleum oil (Chapter 27), organic chemicals (Chapter 29) and pharmaceutical products (Chapter 30), accounted for 76.78% of Brazilian imports from India in 2002: Chapter 27 participated with 48.03%; Chapter 29 with 19.94%; and Chapter 30 with 8.82%.
Imports from the agenda of Brazil
Sugar, iron and steel products, iron ore, leather, soybean oil, precious and semiprecious stones, chemicals, silk yarn and equipment and machinery.
Sectors with excellent prospects (India-Brazil exchange)
Pharmaceuticals, drugs and helthcare.
Aviation (Embraer): jets and helicopters.
Engineering products, auto parts and automobiles.
Product of ethanol in India with Brazilian technology and sale of ethanol produced in Brazil, India.
Indian motorcycle manufacturing in Brazil. Interested companies: TVS and Bajaj Auto.
Collaboration in IT and software sectors.
Collaboration in the financial and banking sectors, with opening lines of credit.
Urban infrastructure, as proposed railway, highway, waterway, electricity, gas and water supply, construction of housing.
And processed food sector growing at 130% per year. Market milk products, meat, eggs, fish, fruit and drinks in expansion.
Consumer goods.
Major developing markets in India
telecommunications;
biotechnology;
IT and ITES;
Pharmaceutical industry;
cars;
Processed food.
Trading with Indians
Like all people, there are some cultural features that must be observed for businesses to develop in a fluid manner:
Indians do not like the English name of their cities, and often the correct immediately. Give preference to Indian names Mumbai, Kolkata and Chennai.
The English language is the most important in trade relations. However a significant portion of the population only speaks the other languages and dialects. Usually younger entrepreneurs speak English. So in the negotiations and correspondence this is the language.
The most suitable period for visits to India is during the winter months from October to March, when the most pleasant temperature.
Indian entrepreneurs are hospitable and faithful to their traditions. Are receptive to foreigners, but they nevertheless demonstrate their distrust. Whenever possible is presented through a reference.
When introduced to a woman never extend your hand. Wait for it greet you, and most often do so with a nod.
It is recommended sobriety in dress and punctuality at the times of the scheduled meetings. The business card should always be delivered with the right hand and with the logo and the name returned to the recipient. Always given into the hand and never put it on the table.
At the table use whenever there is no cutlery, the right hand to pick up the food and dishes.
Remember that the cow is a sacred animal that should not be touched or driven away.
The rather nod is horizontal and not vertical; embraced men or holding hands is common in Eastern and Asian countries and represent friendship and brotherhood. Couples do not go hand in hand and kissing, even in the face, is not given in public.
The Indian is vain and wears jewelry in form of rings with stones and women with red paint on the forehead, close to the scalp, usually indicates being married.
Growth: The best lesson from India to Brazil
India has more similarities with Brazil than can be seen in the first analysis. Poor infrastructure (congested ports, roads and poor railroads, power failure) excessive bureaucracy, high tax burden, anachronistic labor laws, hostile environment for business and a government that spends too much - and evil. The country is also delaying the tax and fiscal reforms. On public spending India not only spends more than Brazil in relation to GDP as its public debt is greater, equivalent to almost 80% of GDP. Corruption is the main concern of Indian entrepreneurs to develop their enterprises to import consumer goods.
Suffering the same ailments that Brazil, In India, though, the balance is very favorable and the country grows at an average of 8% per annum and corporate profits increased by 40% in 2005, according to the Confederation of Indian Industry (IIC). Therefore it becomes increasingly attractive to business and investment and most industrialized countries increases its commercial presence in the country.
After which the mystery of India that can grow as much as having problems similar to those of Brazil? The answer follows in 12 lessons that contribute to the growth of the Asian country.
Global mindset: Major Indian companies do not limit its activities to the national market (want more than this). Aims to be the world's best in their fields to win the race to market with any competitor. The Tata Group, for example, operates in the areas of steel, electricity, telecommunications, technology, automobile industry and production of tea, with revenues of more than $ 21 billion in 2005. The Group is present in over 40 countries on five continents .
Focus on development: Growth is the watchword in India. The priority is to generate wealth to improve the quality of life for its huge population. This growth has been sought with price stability.
Economic planning: India has a tradition of economic planning; any statistic is always accompanied by projections for the future.
Entrepreneurs pro - active: Indian businessmen seem more willing to undertake despite the structural problems of the country. In addition to the economic planning tradition the country's success can be accounted for, above all, to the private sector. It did not happen because of the government, but despite it. Therefore it is said that "In India, when the government sleep, the economy grows." Somehow Indian entrepreneurs seem to have found a way to overcome their difficulties and overcome bureaucracy. There they seem to have their own growth agendas and seek to implement them regardless of which party is in power. Like the good sellers who are entrepreneurs working in partnership with the government on behalf of the country's interest.
Efficient marketing: In order to promote the country and promote his new developmental profile, India ran a highly efficient advertising campaign entitled India Everywhere (India everywhere). The advertising campaign was a success.
Cheap credit: In India the personal credit costs on average 26% per year. In Brazil, 90%, functioning as a lever of the economy.
Investments in research: A country that has become important in the global market claims have to invest in research. In India, at least 250 universities have committed to developing projects that can be effectively implemented by the economy.
Economy anchored in the services sector: Rather than compete with the major industry in the world, India chose to become a power in the export of services. Thus won their own space in the international market. Much of the good performance of India in this segment is due to services of information technology (IT) area and computer. Contrary to what many think India's success in the technology sector is not in production software for mass consumption, but in production tailored to large and medium businesses worldwide.
Popular Products: In India who wins more than two thousand dollars a year is considered middle class. Therefore one can not fail to consider the purchasing power of the lower income classes.
Massification of microcredit: Reaching the low-income population, overlooked by traditional banks, this credit system benefits 32 million Indians. Resources are both to strengthen the household budget as to enable or oxygenate small business.
High Self-esteem: India seems to cultivate a very positive image of himself, despite all the problems it presents and the difficulties facing to solve - them. The Indians never consider themselves or their products as inferior and this helps to create a favorable climate in the country.
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