Exports and Import Business

India’s Oil Export to BrazilGROUP:UMA1V22

Sainath BalasaniBalreddy Anthangari

Gurdeep Singh(2nd semester)

Topic Presented By

Introduction –Brazil’s Economy Grudeep Singh

India-Brazil Relations Grudeep Singh

Potential Business Attraction-Brazil

Balreddy Anthangari

Brazil’s Economic Environment Balreddy Anthangari

Statistical & Political Environment

Sainath Balasani

Legal Environment & Conclusion

Sainath Balasani

Contents

• Brazil is the 7th largest export economy in the world and the 32nd most complex economy according to the Economic Complexity Index (ECI).

• In 2014, Brazil exported $228B and imported $228B, resulting in a positive trade balance of $124M.

• In 2014 the GDP of Brazil was $2.42T and its GDP per capita was $15.9k.

Ref:http://atlas.media.mit.edu/en/profile/country/bra/#Imports

Economy of Brazil• In 2014 Brazil imported $228B,

making it the 19th largest importer in the world.

• During the last five years the imports of Brazil have increased at an annualized rate of 12.3%, from $127B in 2009 to $228B in 2014.

• The most recent imports are led by Refined Petroleum which represent 7.54% of the total imports of Brazil, followed by Crude Petroleum, which account for 6.12%.

Ref:According to OCED .org

India-Brazil Relations • India Brazil relationship is extensive and comprehensive covering

every important segment of interaction, seen at all three levels: bilateral, plurilateral in forum such as IBSA, BRICS, BASIC, G-20, G-4 and in the larger multilateral arena such as the UN, WTO, UNESCO,WIPO, etc.• Brazil is one of the most important trading partners of India in the

entire LAC (Latin America and Caribbean) region. India Brazil bilateral trade has increased substantially in the last two decades.• Diesel exports by Reliance itself account for more than 52% of India's

exports to Brazil, up from the forty one percent of India's exports in 2014.

Potential Business Attraction – BRAZIL• Very rich biodiversity• Abundant agricultural, mineral and energy potential.• Enormous internal growth potential.• Broad industrial base and infrastructure and a diversified economy.• Fast-changing business conditions. • Social inequality.

Brazil's Economic Environment • Brazil has historically experienced strong economic growth since decade. In

the 1970s, real gross domestic product (GDP) grew by approximately 8% annually. The official currency of Brazil is REAL• Brazil’s nominal GDP is the 8th largest in the world and the first in Latin

America with a GDP of approximately US $ 1.481 trillion.• To develop a market economy, Brazil has been reducing import barriers and

privatizing state-owned enterprises. • Brazil has a large and dynamic private sector, which includes sizable foreign

investments.• In 2014, the manufacturing sector accounted for approximately 28% of GDP,

the services sector accounted for approximately 65.3% and agriculture accounted for approximately 6.7%.

Statistical Indicators Year India export India import Balance of

trade-IndiaTotal Trade Growth %

2008 3564 1102 2461 4666 49.23

2009 2191 3415 -1224 5605 20.12

2010 4242 3492 750 7734 37.97

2011 6081 3201 2880 9282 20.00

2012 5043 5577 -544 10620 14.41

2013 6357 3130 3227 9487 -10.67

2014 2260 1141 1119 3401 9.89

2015(Jan-Apr)

3260 1200 2060 4460

Political Environment of Brazil• The federal republic has three independent branches: executive,

legislative and judicial.• The President heads the executive branch and the cabinet.• The Cabinet is answerable to the President.• The total membership of the House of Representatives totals 513

representatives.• Voting is compulsory at the age of 18, but 16- and 17-year-olds, the

over-70s and the illiterate are free to choose whether to vote or not.• Brazil is governed under a democratic regime in which the head

Executive and Legislative positions are occupied by people’s representatives elected by direct voting.

Legal Environment of brazil• The principal source of Brazilian civil law is the Civil Code, which dates

from 2002, and subsequent legislation.• The legal system is slow and cumbersome.• Brazil is a signatory to the Vienna Convention on International

Contracts, a treaty which unifies the international sales law .• The Special Tax Regime REPETRO (Regime Aduaneiro Especial de

Exportação e Importação de Bens Destinados às Atividades de Pesquisa e de Lavra das Jazidas de Petróleo e de Gás Natural).• It is a Brazilian special customs regime which applies to the

importation and exportation of goods destined to foster the growth of the oil and gas industry.

Conclusion• Brazil is the largest economy in Latin America and 7Th largest in the world and it has the

potential to offer significant growth opportunities for oil and other commodities export .

• Government is offering financial incentives to companies which are playing a major role in improving the countries financials by creating special tax regimes.

• Brazilian tax system is very complex as taxes are charged at various levels i.e. at federal, state and municipal .

Why Brazil ?• In 2006 Brazils principal imports were crude petroleum oil ,electric engines etc. The

items exported by India to Brazil since 2001.• Brazil is a developing economy which is a part of BRICS , and developing are always in a

desperate need of natural resources like oil and energy to satisfy the national demand.• Brazil remains very attractive to foreign investors due to its growth potential, large and

competitive market and political stability