With Prime Minister Manmohan Singh reaching Brazil late on Monday, there was time for him for just one meeting with the Indian business delegation. But more work is slated for Tuesday. The entire day will be devoted to bilateral meetings with Brazilian President Inacio Lula da Silva and signing of agreements.

While Indian officials are angry about Minister of State for Commerce Jairam Ramesh airing his views on the notion of complementarities between India, Brazil and South Africa, especially India and Brazil being “fiction”, they say they have managed to assuage sentiments in the host country. The Brazilians contacted the Indians after reading the controversial interview Ramesh gave to Brazilian newspaper O Estado de Sao Paolo, as first reported in The Indian Express last week. The Brazilian ambassador to India is also reported to have sent his report to his government and the hope is that the matter has been settled with the offending article seen as “personal views” of a minister.

IBSA is just three years old, but India and Brazil have been partners earlier, especially in trade negotiations, even before the WTO was formed. The Uruguay Round of trade negotiations saw both countries make common cause, especially in the matter of agricultural subsidies, where both have a stake and whose large populations are engaged in farming. The trade between the two countries is about $2.5 billion at present.

Newer areas of common interest have been India’s interest in Brazilian know-how on ethanol distilled from sugarcane as a substitute for petrol. Oil Minister Murli Deora has announced that petrol in all states should have a 5 per cent ethanol from November this year. A Brazilian journalist, reporting this, thinks it is a significant step on the eve of Manmohan’s trip to Brazil. Brazil has done a lot of work in ethanol production and India is looking to synergise efforts and push for self-reliance in energy. Brazil is also fascinated by the India’s IT strength.

... contd.