The commerce ministry is pushing for diversifying exports to South American countries such as Brazil amid declining merchandise exports in the west and China due to demand slowdown, according to a statement issued by the Ministry of Commerce.
Aimed at strengthening this rapidly growing commercial engagement between the two countries, Commerce Secretary Sunil Bharthwal visited Brazil for the India-Brazil Trade Monitoring Mechanism (TMM) from October 1st to October 4th, 2023.
Bilateral trade between the two countries has doubled over the last two years to US$16 billion.
The Indian delegation participated in various trade facilitation activities aimed at nurturing the growing trade relationship between India and Brazil, the ministry said in a statement.
India is exploring new trade opportunities with key Brazilian organizations, including the Confederation of Industries of Brazil, the Commercial Association of Sao Paulo, the Federation of Industries of the State of Sao Paulo (FIESP) and industries in Rio de Janeiro.
“A productive meeting with the Commercial Association of São Paulo provided a platform to discuss potential trade collaborations. The day concluded with an interactive session with Indian companies operating in Brazil, fostering closer ties within the business community and identifying new opportunities for promoting trade,” the ministry further added.
Barthwal also held discussions with the vice minister of development, industry, trade, and services, Brazil, H.E. Mr Marcio Elias Rosa to advance the economic and commercial partnership between the two nations.
India’s goods exports in August slipped for the seventh successive month with the goods trade deficit hitting a 10-month high.
The extent of the decline however eased to 6.86% in August from double-digit contractions in recent months.
Meanwhile, services exports, after growing at a sharp 26.7% rate in 2022-23, shrunk 0.4% in August to $26.39 billion.
India’s current account deficit (CAD) widened to $9.2 billion in the June quarter from $1.3 billion in the preceding three months, driven by a growing trade deficit, reduced net services surplus and decreased private transfer receipts, adding pressure on the local currency.
The trade deficit, the largest component of the CAD, happens when a country’s imports exceed the value of its exports.