Brazilian companies step up investment plans for India

Kenneth Félix Haczynski da Nóbrega, Brazil’s ambassador to India and Bhutan, told Valor that over half of the missions were either multisectoral or focused on agriculture and aerospace/defense. Other key areas included technology, healthcare, and energy.

Both countries, members of the BRICS bloc, have strengthened ties following trade tensions triggered by U.S. President Donald Trump, which affected industries in both Brazil and India.

Defense companies worldwide have begun seeking partnerships to reduce their technological dependence on powers such as the United States and France. This movement led the Abu Dhabi-based defense technology company Edge Group to invest more than $550 million in Brazil since March 2023.

Embraer is also stepping up efforts. The Brazilian aerospace company recently opened an office in India, primarily to support negotiations with the Indian government for the potential sale of up to 80 units of its KC-390 military transport aircraft.

Just over a week ago, when it inaugurated the new office, Embraer announced an agreement with Indian conglomerate Mahindra to advance a project that could lead to local production of the KC-390.

Also in the defense sector, Taurus and CBC (Companhia Brasileira de Cartuchos) are operating in India through joint ventures with local companies.

Tramontina, meanwhile, opened a factory in the Indian state of Karnataka this year—its first manufacturing plant outside Brazil—via a joint venture with the Indian firm Aequs.

Oil supply

Another strategic priority for India is securing petroleum supply partnerships. In February, executives from Petrobras visited India to finalize a deal with state-owned Bharat Petroleum Corporation Limited (BPCL).

According to Petrobras, India accounted for 4% of its oil exports in 2024. The country, which is the world’s third-largest oil importer, met about 85% of its oil demand through imports last year.

Brazil’s Central Bank reported in its 2024 Foreign Direct Investment Report that the stock of Brazilian direct investment in India reached $122 million at the end of 2023, a record high. Between 2014 and 2023, this investment grew by an average of 11.5% per year. Still, Brazil’s nominal investment in India remains small, representing less than 1% of its total global FDI stock.

“India is currently governed by a party with a very clear national vision. They’re building a network of international partnerships to support their rise, and I would say Brazil is among the countries they see as strategic, not just politically, but economically and technologically,” said Mr. Nóbrega. With business activity on the rise, the Brazilian Embassy is considering a new headquarters in the country.

Bilateral trade

In 2024, Brazilian imports from India totaled $6.8 billion, while exports reached $5.3 billion, based on trade data. From 2004 to 2024, India rose from 29th to 13th place among Brazil’s top export destinations, according to a June report by ApexBrasil, the Brazilian Trade and Investment Promotion Agency. Since 2019, Brazil’s global exports have grown by an average of 7.3% per year, while exports to India have increased by 13.7%.

India’s economic growth is central to addressing some of its major domestic challenges, including widespread malnutrition. In this context, agricultural partnerships, especially in technology, play a key role in the Brazil–India relationship.

“Brazil is seen as a country capable of providing supplies and technology in key areas like agriculture,” said Ambassador Nóbrega, emphasizing the absence of geopolitical tensions between the two nations.

More than 50% of India’s population currently lives in rural areas, while over 80% of Brazil’s population is urban. Despite India’s significant agricultural output, the sector remains under-mechanized, creating an opportunity for Brazilian technology and expertise to fill the gap.

Wagner Antunes, head of trade at Brazil’s Embassy in India, highlighted the strong interest in defense and aviation. “Brazil has managed to build a solid and diversified industry,” he said.