Big economic push

Big economic push
The Brazilian economy has improved under Bolsonaro but is still performing below potential, while India is in an economic slowdown. Both nations will likely want to help each other on the economy, so expect some big announcements.

Besides seven ministers in his delegation, Bolsonaro is bringing representatives of 50 major companies ranging from agriculture to defense. India and Brazil will sign a Bilateral Investment Treaty (BIT). Brazil will also be the first country to sign an investment protection agreement with India, ensuring that capital investments in each other’s nations are safe, protected and encouraged.

Indian sugarcane farmers are protesting sugar giant Brazil’s complaint at the World Trade Organisation against India’s cane subsidies, but that won’t get in the way of major agreements on bio-energy and ethanol production, pension fund investments, agriculture, oil and gas production, animal husbandry, crime and cybersecurity.

The Modi and Bolsonaro meeting may not be the most explosive, but when two of the world’s biggest emerging powers meet on a very special occasion, it is a clear signal to the big boys: We are here to play our game, not yours.