Demystifying India - Brazil relations

India and Brazil, despite being on other sides of the world, have not been diplomatically isolated from each other, and have been connected in various ways throughout contemporary history. As the relationship gradually grows stronger, an examination of their current and historical relationship should be done. 

Report by Varshita Rana | Graphics by Asmita Maurya (M&D)

Summer Research Intern 2024

Historical trajectory of the relationship

When, after gaining independence in 1947, the Indian government allocated spots for important allies’ embassies along the Shanti Path, Latin American nations including Brazil were overlooked entirely because they did not fall under India’s diplomatic or economic radar. For the first two decades that followed  World War II, there were no trade agreements between India and any Latin American country, including Brazil. Rather, these decades were charged with diplomatic tensions as a result of the contested withdrawal of the Portuguese from their colonies in India, principally Goa wherein Brazil staunchly supported Portugal’s claim to the territory. Although it tried to justify its stand by stating that their actions must be understood in the backdrop of a long tradition of fellowship between Brazil and Portugal, the Indian government was deeply disheartened that Brazil was shielding a non-democratic country like Portugal, against the democratic and recently independent India. Overall, this episode further strained ties between the two.

In 1964 though, relations improved somewhat with the creation of UNCTAD (UN Conference on Trade and Development) and G77, where Brazil and India were able to frequently articulate joint positions. A crucial aspect of the foreign policy of both countries was represented  by The “3 Ds” (disarmament, development, decolonization). Brazil and India often collaborated during trade and tariffs negotiations in GATT (General Agreement on Tariffs and Trade). Later, Brazil’s President Fernando Henrique Cardoso (1994– 2002) pragmatically decided to diversify Brazil’s partnerships. While not completely abandoning traditional allies in Europe and North America, Cardoso carefully articulated and implemented Brazil’s new global strategy, which involved stronger ties with other developing countries of the global south in order to forge partnerships with countries such as India.

President Lula (2003–2010) swiftly expanded upon and made an effort to formalize the relationship between Brazil and India in 2003, the same year that the two nations led the developing world in the trade talks at Cancun and established the IBSA, a trilateral organization including South Africa as well. Only a little later, Brazil and India joined the G4 (consisting of India, Brazil, Japan, and Germany) which made a formal bid to step foot into the UN Security Council, a scheme that ultimately ceased to function in 2005 as a result of African, Chinese and American opposition. Another major impediment came after the signing of the US-India nuclear deal of 2005, in which the United States recognized India as a nuclear power. It did not go well with Brazil, which alleged that India was going against its previous stance of not resorting to nuclear weapons, and things worsened after India refused to sign the NPT.  

Yet, Lula was calculative enough to not let the disturbance permanently damage flourishing Brazil-India relations, and the two countries continued their project to further their ties. As a result of their improving ties,  in 2006, Manmohan Singh became the first Indian Prime Minister to visit Brazil in thirty-eight years. As Jim O’Neill’s invention of the BRIC label was well received, Russia invited the foreign ministers of Brazil, India and China in order to formalize the BRIC summit as a means to strengthen their international weight. The creation of this multilateral cooperation of the stronger developing economies—Brazil, India, Russia and China- in 2009 was acclaimed as the beginning of a new world order. In 2011, South Africa joined the group and the association became unique as a distinct bloc of South. Though BRICS as a group has tremendous potential to grow, it has also received backlash for not having a common vision.

Navigating the challenges 

In this context,  Amb. R Visvanathan makes the stand that “Latin America is closer to India than you think”. However, robust ties and a strategic realignment between India and Brazil have been hindered by a geographical disconnect, late realization of opportunities and inability of both sides to harness a judicious partnership; all of  which has cultivated into multiple manifestations- 

First is the Lack of connectivity: it arises as direct air and shipping links are considered uneconomical due to the huge distance of 14,000 km and the unstable political environment. While both sides see each other as exotic tourism destinations, they have not been fruitful in achieving critical travel mass. Secondly, Low trade volume is another impending challenge as India’s bilateral trade with Brazil fell to 9.5 billion dollars in 2013. Imports from Brazil to India had grown sharply in 2012 but fell back in 2013 mainly due to a reduction in crude oil exports of Brazil. Brazil's share in the Indian export market was about 2.6 percent whereas Brazil's share in Indian imports was about 1.3 percent which depicts the asymmetrical pattern.

 

Thirdly there is also a vacuum of strategic connection; given the geographical distance and distinct geopolitical realities of India and Brazil, there is a sort of vacuum in strategic association between the two, for example, the kind that is shared in the Indo-Pacific theater by India and neighbors. Fourthly, the unhindered influence of the United States and China on the regional as well as national politics of the region. This essentially limits India's manoeuvering capacity and minimizes its reach in terms of harnessing the natural and human resources of the region. 

Lastly, another obstruction is caused due to Cultural disconnect and linguistic unfamiliarity. Though there are few cultural connections, like Bollywood, as rightly pointed out by Fatima Bhutto in her book  “New Kings of the World”, there is a larger cultural disconnect and unfamiliarity of languages, which impede a closer relationship between India and Brazil. The Absence of a significant diaspora also limits the relationship as there are no domestic constituencies between the two countries lobbying for stronger relations.

Opportunities and confluence

The above stated challenges notwithstanding, there is immense potential in the relationship. Both India and Brazil seek to aptly bridge the gaps of surplus and deficit, and both are large and growing markets for each other's economic progress and development. Firstly in terms of providing Food security, Brazil is one of the largest soy producers in the world and could potentially aid India to lessen the excessive dependence on Malaysia and Indonesia which have been dictating global prices. Also, with regard to agriculture, Brazil has vast tracts of fertile land, abundant water, advanced technologies, and best practices. The region has abundant potential to synthesize more land for agriculture, thus feeding a larger population. 

Secondly, another convergence can happen in terms of Strategic Energy Security. Brazil has begun commercial production of its newfound pre-salt oil reserves and it has the capacity to almost double its crude exports from its current capacity. Lastly, other than economic complementarities, India can also Emulate best practices for economic growth and development in spheres such as the Brazilian fuel ethanol program, leading to a paradigm shift towards clean energy along with enlightening ideas such as the Conditional cash transfer programs of Brazil, economically empowering those at the bottom of the ladder. If such practices are replicated in India they have the potential of transforming the lives of those who fall below the poverty line and face difficulty in making daily ends meet.

Conclusion

According to Former Amb. Shyam Saran, as a middle power nation, Latin American countries can be significant partners in any middle power coalition that India leads or supports to create a robust multipolar world order. Taking the analogy forward, for the India-Brazil alliance to become imperishable, it must be made clear that strong ties between Brazil and India are in no way meant to be an anti-Western alliance. Brazil and India are two emerging nations that have similar views on liberal policies, democracy, human rights, and global governance. Based on their trading links, they are collaborative partners and can harness each other for their betterment. Due to their unified positions in numerous multilateral and plurilateral forums, the two nations are regarded as crucial for the development of a new global order. Both nations have enormous potential for bilateral growth. To fortify their association,  they need strong political will and determination that would cultivate into a secure south-south partnership. 

References

Albuquerque, Marianna, et al. “India and Brazil in the Global Multilateral Order.” Observer Research Foundation, 8 August 2022, https://www.orfonline.org/research/india-and-brazil-in-the-global-multilateral-order.

Hirst, Monica. “Brazil–India Relations: A Reciprocal Learning Process.” 1 January 2008, https://journals.sagepub.com/doi/abs/10.1177/097152310801500109?journalCode=sasa.

Saxena, Priya. “India-Brazil Relations.” MANOHAR PARRIKAR INSTITUTE FOR DEFENCE STUDIES AND ANALYSES, 21 July 2014, https://www.idsa.in/backgrounder/IndiaBrazilRelations_210712.

Singh, Preeti, and Devika Misra. “India-Brazil ‘Strategic Partnership.’” Indian Foreign Affairs Journal, July-September 2019, https://www.jstor.org/stable/48636725.

Stuenkel, Oliver. “The Case for Stronger Brazil-India Relations.” Indian Foreign Affairs Journal, July-September 2010, https://www.jstor.org/stable/45340853.