Technical Note - 2021 - October - Number 02 - Dinte

Brazil and India: Peculiar Relationship With Big Potential

Autores: Renato Baumann, Fernando J. Ribeiro, Flavio Lyrio Carneiro e Mateus de Azevedo Araújo

Acesse o PDF (1 MB)

Brazil and India have applied similar policies to develop their economies, in the context of import substitution regimes (1950-1990) characterized by high average tariff to imports and heavy incentives aiming to develop local industry.

The value of total production in the two economies experienced an increasing distance in recent years, thanks to a much better performance by India (chart 1). Brazilian gross domestic product (GDP) was worth US$ 574 billion on average in 2000-2002, and India’s GDP a not too smaller US$ 489 billion. In 2017-2019 Brazil’s GDP went up to US$ 1.9 trillion, whereas in India this value reached US$ 2.7 trillion