Brazil - India Trade 2024 Q1: Robust Growth Surplus

Key Market Takeaways: Brazil - India Trade

The bilateral trade relationship between Brazil and India shows robust growth with a modest surplus in Q1 2024.

• Economic Pulse: Brazil posted a $90M trade surplus ($1.44B exports vs. $1.35B imports), driven by strong YoY export growth (+108.65% peak) despite India’s import declines (-49.01% in March).
• Exchange Structure: Brazil - India trade statistics reveal a resource-for-tech model—Brazil supplies sugar (36.14%) and mineral fuels (34.81%), while India exports organic chemicals (24.60%) and machinery.
• Strategic Interdependence: Highly complementary economies, with Brazil’s commodity exports fueling India’s industrial demand, while India retains higher value-add in manufactured goods.

This bilateral trade snapshot is based on verified customs data from the yTrade database.

Brazil-India Trade Trend in Q1 2024

Brazil Export Performance: Shipments to India

• Total Volume: $1.44B in Q1 2024.
• Growth Trend & Context:
  • Strong YoY growth in February (+108.65%) and January (+46.31%), though March moderated to +33.17%.
  • No specific trade news to explain the surge, but consistent double-digit growth suggests robust demand or improved trade terms.
• Key Volatility: March saw a sharp MoM jump (+17.02%), the highest in the quarter.

Brazil Import Performance: Sourcing from India

• Total Volume: $1.35B in Q1 2024.
• Growth Trend & Context:
  • YoY declines persisted across all months, steepest in March (-49.01%).
  • No news to contextualize the contraction, but the sustained drop hints at reduced dependency or competitive shifts.
• Key Volatility: February recorded the lowest MoM performance (-5.87%), while March rebounded (+6.07%).

Brazil - India Trade Balance & Market Dynamics

• Net Position: Brazil holds a trade surplus of $90M (Exports: $1.44B > Imports: $1.35B).
• Relationship Status: Brazil maintains a net exporter role, though import declines signal potential rebalancing. The surplus is modest, indicating relatively balanced trade ties.

Brazil Import Trend from India 2024 Q1 (Source: yTrade)**

Brazil Export Trend to India 2024 Q1 (Source: yTrade)**

Get Historical Brazil India Trade Records

Brazil-India Top Trading Products in Q1 2024

Brazil Export Profile: What Does Brazil Sell to India

• Top Commodity: Rank #1 export is HS Code 17 (Sugars and sugar confectionery) at 36.14% of total exports to India.
• Demand Driver: India uses these for industrial processing (e.g., food manufacturing) and consumer markets.
• Concentration: Trade is highly concentrated, with HS Code 17 (36.14%) and HS Code 27 (Mineral fuels, 34.81%) dominating 70.95% of exports.

Brazil Import Profile: What Does Brazil Buy from India

• Top Commodity: Rank #1 import is HS Code 29 (Organic chemicals) at 24.60% of total imports from India.
• Dependency Nature: Critical technology dependency, as imports are dominated by industrial inputs like chemicals, machinery (HS 84), and pharmaceuticals (HS 30).

Brazil - India Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity. Brazil exports raw materials (sugar, mineral fuels) to India, while importing high-value industrial goods (chemicals, machinery).
• Value Chain Position: India holds the higher value-add position, supplying advanced industrial products, while Brazil primarily provides commodities.

Import Analysis by Product: India to Brazil (Source: yTrade)

Export Analysis by Product: Brazil to India (Source: yTrade)

Check Detailed Brazil-India Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

Brazil’s trade surplus with India is expected to widen in Q2 2024, driven by sustained demand for Brazilian sugar and mineral fuels. However, the sharp decline in imports from India signals a potential shift in sourcing strategies or competitive pressures in high-value industrial goods. If this trend continues, Brazil may face supply chain bottlenecks in critical sectors like chemicals and machinery. Traders should prepare for volatility in commodity prices, especially with India’s industrial demand remaining unpredictable.

Strategic Moves

• Lock in Sugar Export Contracts: With sugar (HS 17) dominating 36% of exports, Brazilian producers should secure long-term agreements with Indian buyers to capitalize on current demand and hedge against price fluctuations.
• Diversify High-Value Imports: Brazil’s heavy reliance on Indian organic chemicals (HS 29) and machinery (HS 84) poses a risk. Importers must explore alternative suppliers in Southeast Asia or Europe to mitigate supply disruptions.
• Monitor Fuel Export Opportunities: Mineral fuels (HS 27) account for 34.8% of exports. Traders should track India’s energy policies and industrial expansion plans to align shipments with peak demand cycles.

Frequently Asked Questions

How did Brazil - India trade perform in 2024 Q1?

Brazil's exports to India grew strongly (YoY), reaching $1.44B, while imports from India declined to $1.35B, resulting in a $90M trade surplus for Brazil.

What are the top exports from Brazil to India?

Brazil's top exports to India are HS Code 17 (Sugars and sugar confectionery) and HS Code 27 (Mineral fuels), together accounting for 70.95% of total exports.

What does Brazil import from India?

Brazil primarily imports HS Code 29 (Organic chemicals), HS Code 84 (Machinery), and HS Code 30 (Pharmaceuticals) from India, with organic chemicals alone making up 24.60% of imports.

What is the trade balance between Brazil and India?

Brazil holds a trade surplus of $90M with India in Q1 2024, though its imports from India are declining, suggesting a potential rebalancing of trade ties.