Meeting with Mr. Marconi Perillo Jr., Governor of State of Goias, Brazil and Accompanying Business Delegation
November 22, 2004, New Delhi

Welcome Address by Mr.Yogendra Kr.Modi, President, FICCI

H.E.Mr. Marconi Perillo, Governor of State of Goias, Republic of Brazil
Minister Luiz Guilherme De Moraes, Charge D` Affaires, Embassy of Brazil
Dr. Veena Jha, India Programme Coordinator, UNCTAD
Mr.Anwar Haleem, Director, Ministry of External Affairs
Mr. Sunil Trikha, General Manager, EXIM Bank and friends

I would like to take this opportunity to extend all of you a very warm welcome. We are honored to have with us today H.E. Mr. Marconi Perillo, Governor of Goias along with the captains of the trade and industry from the region.

1st January 2005 will see a global reorientation of economic process wherein Brazil and India will be important players. The exits of the quotas regime in textile sector, Implementation of New IPR Regime are going to influence the International trade significantly. We have to continuously evaluate our strengths and synergies our competencies, both bilaterally and at multilateral fora.

India, with a large pool of excellent human resources and a favourable demographic profile and Brazil with its vast natural resources and technological excellence have both made tremendous progress in recent years in occupying their rightful places in the global economy. Our advances in the knowledge-based industries have transformed our economic landscapes and developed new capabilities and synergies. Brazil & India would be amongst the fastest growing economies of this century.

About Indian Economy

On the bilateral front, one of the prime aims today is to intensify our economic and trade cooperation. This can only be achieved with a firm resolve to tap the unlimited potential. I would like to highlight some of the areas identified by FICCI.

Friends, India and Brazil can co operate in sectors like Science and Technology, Aviation, Tourism, Food Processing, Drugs and Pharmaceuticals, Hydrocarbon and Infrastructure sectors.

Today India's strength and competency in knowledge based industries are acknowledged worldwide. Our annual exports of IT enabled services are nearly US $ 10 billion, with a large proportion going to Europe and America. At the same time, Brazil has developed a large and sophisticated IT market. However, despite this we have not been able to mutually benefit. We have observed that Brazil imports most of these products and services from Europe, which could be sourced from India at much lower cost.

India's competencies in the pharmaceutical sectors, gems cutting and polishing, IT and IT Education, Cotton and Textile machinery, infrastructure and project exports are well recognized. Brazil's strengths in commodities, edible oil, food processing sector, aviation and utilizing ethanol as adductive in petrol are also well known. The actualization of cooperation in these sectors amongst others will further raise the free flow of goods between two countries.

The PTA between India and Mercosur countries comprising of approx. 450 items, offers tremendous potential for mutual cooperation. The Ministry of Commerce and Industry has launched Focus-LAC programme to enhance mutual trade. The EXIM Bank of India has extended the credit line for trade facilitation.

I had the privilege of being in your beautiful country with FICCI's business delegation during the UNCTAD Conference in June this year wherein new areas of cooperation were identified and discussed with Confederation of National Industries.

Brazil is the focus country during the India-International Trade Fair this year.

The State of Goias has decided to supplement its transport sector with a new railway-line. India's competencies in the railway sector are well acknowledged and I am confident that we would be able to work together on this project.

FICCI has identified issued which needs to be tackled for full realization of the trade potential between India and Brazil which include, Inadequacy of information on market potential, policies and import regulations of each other, air and sea transportation links, Trade restrictions, Inadequate banking and insurance facilities, High transaction costs etc.

We hope that the continuous interactions like this would be helpful in identifying problem areas and improve the trade flows.
Welcome you all once again.