Business and Economy Current Affairs - 2020

India-Brazil ink 15 agreements during Brazil President’s visit on Republic Day

The President of Brazil, Mr Jair Bolsonaro visited India to take part in Republic Day celebrations. During his visit, the countries signed several agreements. Alongside, the fifth session of India-Brazil Trade monitoring mechanism was also held. President Bolsonaro was accompanied by a huge business delegation. They will hold several meetings with their Indian counterparts during the India-Brazil Business Forum that is to be held in 27, January, 2020.

Highlights

The countries signed agreements on trade, cyber security, information technology. The countries have set target to increase bilateral trade to 15 billion USD by 2022.

Outcomes

Animal Husbandry is the new area over which the countries have identified potential cooperation. This is mainly due to the common genetic heritage between the countries.

Concerns

The countries agreed to address the issue of sugarcane bilaterally. The issue was raised by Brazil at WTO complaining India is extending support to local sugarcane growers. According to WTO, Most Favoured Nation status should be awarded by the members to every other member. This will exclude special tariff and also exclude restriction on imports and exports helping to increase trade globally.

India will overtake Germany; Become 4th largest economy in the world in 2026

According to a report released by UK based Centre for Economics and Business Research (CEBR), India will overtake Germany in 2026 to become the world’s fourth largest economy. The report also said that by 2034, India will overtake Japan and become third largest economy in the world

Highlights

Today, India is the fifth largest economy in the World after US (20.49 trillion USD), China (13.41 trillion USD), Japan (4.97 trillion USD) and Germany (4 trillion USD). In 2019, India had successfully overtaken France and Germany to reach rank 5.

The CEBR report said that India will achieve its 5 trillion USD target by 2026. The report titled “World Economic League Table” obtains most of the data from IMF’s World Economic Outlook report.

CEBR

The CEBR provides independent economic forecasting to 100s of public and private organizations. It was founded in 1960s as Bureau of Business Research. The centre is currently working on economic policy research, local forecasting, national, state level data analysis. It releases publications on transportation, energy and public finance.

The headquarters of the organization is located in Munice, Indiana. It is to be noted that in 2011, the organization predicted India to become fifth largest economy in the world by 2020 which India has already achieved in 2019!