MACROECONOMIC

THEORIES & POLICIES

A Comparative Study of India &
Brazil

Akarsh Deep [19PGDM-BHU005]

Chayan Sen [19PGDM-BHU020]
Meghana Verma [19PGDM-BHU036]
Rosalin Sahoo [19PGDM-BHU055]
Suvrajit Modak [19PGDM-BHU076]
 INTRODUCTION
Indian Economy Brazil Economy

 India is characterized by a
 Brazil is characterized developing
developing economy.
free-market economy.
 5th largest economy in terms of  9th largest economy in terms of
nominal GDP. nominal GDP.

 3rd in terms of Purchasing  8th in terms of Purchasing Power

Power Parity (PPP) Parity (PPP)
GROSS DOMESTIC PRODUCT [GDP]
 Gross domestic product (GDP) is the monetary value of all the finished goods and
services produced within a country's borders in a specific time period.
 India’s GDP stands at $2.7 trillion and Brazil’s GDP at $2.06 trillion
 India- June quarter growth 5% and September quarter growth 4.5%
 India’s GDP represents to 4.19% of the world economy.
 GDP Annual Growth Rate in India averaged 6.18 percent from 1951 until 2019,
reaching an all time high of 11.40 percent in the first quarter of 2010 and a record low
of -5.20 percent in the fourth quarter of 1979.
 Brazil GDP growth rate for 2018 was 1.12%, a 0.05% increase from 2017
 Roughly 49% of India's GDP is created from outside exchange, contrasted with
25% for Brazil.
 GDP Annual
Growth India
A

GDP Annual Growth

Rate Brazil
 GDP of INDIA and
BRAZIL from 1960-
2016

Employment to
Population Ratio of
India and Brazil
INTERNATIONAL TRADE
 International trade is the exchange of capital, goods, and services
across international borders or territories. In most countries,
such trade represents a significant share of gross domestic product
(GDP).

 Types of International Trade:

 Export Trade
 Import Trade
 Entrepot Trade
 INDIA-BRAZIL TRADE
RELATION
 Global drop in commodity prices and the economic recession in Brazil
started in 2015 affected Brazil’s overall trade.

 Result - negative impact on bilateral trade which came down from USD
7.9 Billion (2015) to USD 5.64 Billion (2016).

 Recovery- Brazilian economy in year 2017, the bilateral trade between

India and Brazil rose to USD 7.6 Billion with growth of 34.71%.
 Trade Figures – 2017

(USD in Billion)

GROWTH GROWTH
EXPORT IMPORT TOTAL % OF % OF
EXPORT IMPORT

BRAZIL’S
4.65 2.94 7.6 47.3 18.6
TRADE
WITH
INDIA
EMPLOYMENT
 Employment Rate in Brazil decreased to 54.20 percent in January from 54.50 percent
in December of 2017.

 Employment Rate in Brazil averaged 55.81 percent from 2012 until 2018, reaching an
all-time high of 57.30 percent in November of 2013 and a record low of 53.10 percent
in March of 2017.

 Brazil’s unemployment rate rose to 12.7% in the three months to March from 12.4% in
the three months to February

 According to this report, the 2017–2018 "usual status" unemployment rate in India at

6.1%, a four-decade high, possibly caused by the 2016 demonetization 

 Unemployment Rate in India decreased to 3.46 percent in 2016 from 3.49 percent in
2015.

 Unemployment Rate in India averaged 4.08 percent from 1983 until 2016, reaching an
all time high of 8.30 percent in 1983 and a record low of 3.46 percent in 2016.
 BRAZIL’S
EMPLOYMENT
RATE

BRAZIL’S
EMPLOYMENT
RATE
UNEMPLOYMENT RATE OF INDIA
(1998-2018)
INFLATION
 Inflation is the rate at which the general level of prices for goods and services is rising
and, consequently, the purchasing power of currency is falling.
 In 2018, the inflation rate in India was around 3.43 percent compared to the previous
year.
 In 2018, the inflation rate in Brazil amounted to about 3.67 percent compared to the
previous year, a slight increase from the previous year’s 3.45 percent
 Inflation of India is very much stable compared to that of Brazil.Brazil had to suffer
because of hyper-inflation and it struggled its way to maintain inflation at normal levels.
 Annual inflation rate in Brazil fell for the second straight month to 2.54 percent in
October of 2019 from 2.89 percent in September and compared with market
expectations of 2.52 percent. It is the lowest inflation rate since September of 2017
 India's retail price inflation rate climbed to 4.62 percent year-on-year in October 2019,
the highest in over a year, from the previous month's 3.99 percent and above market
expectations of 4.25 percent.
  Inflation Rate in India averaged 5.98 percent from 2012 until 2019, reaching an all time
high of 12.17 percent in November of 2013 and a record low of 1.54 percent in June of
2017.
BRAZIL: Inflation rate from 1984 to and projecting
up to 2024
INDIA: Inflation rate from 1984 to and projecting up
to 2024
PUBLIC FINANCE
Public finance means the financial transactions of the government.

There are two type of public finance which are: -

Public Income

It refers to the income of the government. The government earn money as tax income and
non-tax income. Tax income means money earned by income tax, GST. Non-tax income
means income earned through interest received from other countries on loan given to them,
loans given IMF, World Bank etc.

Public Expenditure

It means expenditure done by government such as on defence, infrastructure etc.

 
 Government Spending in Brazil decreased to 107947.03 BRL Million in October from
123448.22 BRL Million in September of 2019. 
 Government Spending in Brazil averaged 52239.82 BRL Million from 1997 until 2019,
reaching an all time high of 170623.39 BRL Million in December of 2015 and a record
low of 9016.42 BRL Million in February of 1997.
 Government Revenues in India increased to 9344.60 INR Billion in October
from 8370.65 INR Billion in September of 2019. 
 Government Revenues in India averaged 3063.51 INR Billion from 1997 until
2019, reaching an all time high of 16660.55 INR Billion in March of 2019 and a record low of
0.82 INR Billion in April of 1999.
 The government is estimated to spend Rs 27,86,349 crore during 2019-20. This is
13.4% more the revised estimate of 2018-19
 The government expenditure in Brazil amounted to about 38.49 percent of the
gross domestic product.
PUBLIC FINANCE IN INDIA
(1990-2017)
SOME ECONOMIC COMPARISON
B/W
INDIA & BRAZIL
 CONCLUSION
 Greater exposure to international markets appears to drive India's growth.

 Brazil, meanwhile, saw international trade shrink after the U.S. energy
boom and a devaluation of the Chinese yuan. The United States and China are
Brazil's two largest trading partners and major components of its recent economic
structure.

 Measured by aggregate gross domestic product (GDP), the Indian economy

is larger than Brazil's.

 Measured on a per capita basis, however, Brazil is far richer. The

estimated GDP per capita in Brazil was $14,810 in 2016, roughly 2.2 8 times larger
than India's $6,490 GDP per capita.