Whilst Brazil is the ninth biggest economy in the world, it’s chemical industry is the eighth biggest and has grown substantially since the turn of the millennium as Brazil’s economy has increased in global stature. “Brazil is a natural destination for the world’s chemical industry because it is rich in oil, gas, minerals and rare earth and has much biodiversity,” remarked Marcos de Marchi, chairman of the board of directors, Abiquim, the national trade association for the chemical industry.
Brazil’s chemical industry has annual net sales from domestic production of US$113.5 billion and is the third largest industrial sector in the economy, representing 10% of overall industrial GDP. It also supports 2 million jobs in terms of the whole chemical value chain and 400,000 direct jobs.
The recession has unsurprisingly dented the industry’s performance but it has been recovering since 2016, even as the economy was still in free-fall. Sales from local production fell from US$156.7 billion in 2014 to US$112.4 billion in 2015 but recovered slightly US$113.5 billion in 2016, helped by the fall in the Real which has made local production more competitive. Consequently, imports have seen a steady decline from US$46.1 billion in 2014 to US$34.2 billion in 2016, although a drop in domestic demand due to the recession has also played a powerful role.
Quick Snapshot of India-Brazil Trade between Chemicals Industry
- Brazil imported a total of USD 30 Billion-dollar worth of Chemicals from the world in 2017.
- Chemicals represent approximately 28%of Brazil’s total imports from the world.
- It is the 2nd largest commodity imports by Brazil.
- India exported a total of USD 500 million worth of Chemicals to Brazil which is a mere 2% of the total Chemicals imports by Brazil.