Assignment onPESTEL ANALYSIS(India and Brazil)

Submitted To: Submitted By:

PESTEL ANALYSISPESTEL Analysis is a framework / tool used by marketers to analyze and monitor the macro-environmental factors which have an impact on an organization. The tool allows assessing the current environment and the potential changes a better project can respond to the changes more effectively and efficiently. PESTEL analysis can act as aide in the SWOT Analysis to outline the threats and weaknesses of an organization from its future growth perspective.PESTEL is an acronym, which stands for: P Political E Economic S Social T Technological E Environmental L Legal

The different factors are explained as follows:Political Factors: Political factors are related to the level of government intervention in the economy. These factors are essential to look how government regulations and legal issues affect businesses profitable and successful or unsuccessful.Economic Factors: Economic factors look at how the outside economic issues can play a key role in the companys success. Various external economic factors play a key role in the working of a company.Social Factors: Social factors analyze the demographic and cultural aspects which may determine whether a business can compete in the current market. They analyze the behavior of people and see how their tastes and preferences can alter the market trends.Technological Factors: With increasing innovation and new technological advancements, it is mandatory to study the effect of various technological factors on a company, which either be a great opportunity for the company or a major threat. The availability of the technology can make it easier/harder for a company to enter the industry.Environmental Factors: The environmental factors take into account the ecological and environmental aspects that could be either economic or social in nature. The environmental issues are a growing concern for the world and it is mandatory for the companies to focus on working towards reducing environmental deterioration.Legal Factors: The legal factors are related to the laws prevailing in the country which may influence the companys operations, costs and the demands for its products.The PESTEL factors examples can be clubbed in the following table:Political FactorsEconomic Factors

Bureaucracy TariffsCorruption SubsidiesTax Policy Trade ControlFreedom of Press RegulationsGrowth Rates Price FluctuationsInflation Rates Stock Market TrendsExchange Rates Labor CostsDisposable Income Credit Availability

Social FactorsTechnological Factors

Lifestyles AgeHabits Social ClassesReligion Family SizePopulation EducationInfrastructure R & DInnovation Incentives Access to New Technology

Environmental FactorsLegal Factors

Weather Waste ManagementClimate Change Green ConceptPollution Renewable EnergiesRecycling Copyrights Health & Safety Law IP Law Anti-Trust LawEmployment Law Discrimination LawConsumer Protection Law

INDIACAPITAL New DelhiINDEPENDENCE15th August, 1947OFFICIAL LANGUAGEHindi, EnglishLARGEST CITYMumbaiGOVERNMENTFederal Parliamentary Constitutional Republic- PresidentPranab Mukherjee-Prime MinisterNarendra Modi-Chief JusticeRajendra Mal LodhaLEGISLATUREParliament of India-Upper HouseRajya Sabha-Lower HouseLok SabhaCURRENCYIndia RupeePOPULATION1,210,193,444GDP$5.425 trillion (PPP); $1.966 trillion (Nominal)

BRAZILCAPITAL BrasiliaINDEPENDENCE7th September, 1822OFFICIAL LANGUAGEPortugueseGOVERNMENTFederal Presidential Constitutional Republic- PresidentDilma Rousseff-Vice PresidentMichel Temer-President of Supreme Ricardo Lewandowski Federal CourtLARGEST CITYSao PauloLEGISLATURENational Congress-Upper HouseFederal Senate-Lower HouseChamber of DeputiesCURRENCYRealPOPULATION202,656,788GDP$2.505 trillion (PPP); $2.215 trillion (Nominal)

INDIA & BRAZIL PESTEL ANALYSISThe India-Brazil connection can be dated back to five centuries ago with the Asian migration to South America. The historical link can be traced back to the time when Portuguese explorer Pedro Alvares was on his way to India and discovered Brazil in 1500 as he was blown off-course- and after a halt finally reached Goa. It led to a Portuguese association between India and Brazil. Between 16th and 18th centuries Brazil and Goa had been doing bilateral exchanges, since both were Portuguese colonies. There was exchange of varied agricultural crops, cattle, food, dress and folk traditions in the colonial times. There is a great similarity between the folk traditions of Boi Bumba (Brazil) and Poikam Kudharai (South India). India has had a remarkable contribution toward the farming in the Brazil. A bulk of Brazilian cattle livestock is of the Indian origin e.g. the bovines (ox) - the Zebu variety in Brazil (which forms 90% of the Brazilian cattle breed) can be traced from the Ongole strain in Andhra Pradesh. Till date, Brazil imports fresh embryos from India to rejuvenate its cattle livestock- Brazil is now the second largest beef exporter in the world. Indian mango and coconut plants were introduced to Brazil and the Brazilian manioc and cashew were brought to India. On May 3, 1948 the first Indian diplomatic mission was opened in Rio de Janeiro and was later moved to Brasilia on August 1, 1971. The Indian Consulate General was opened in Sao Paulo in the year 1996. On the other hand, since 1949, the Brazilian Embassy has been operational in India and has a Consulate General in Mumbai.The Indian-Brazilian relationship covers interaction at three levels: bilateral, plurilateral and multilateral. The plurilateral interaction comprises of IBSA, BASIC, G-20, G-4 and BRICS. Meanwhile, the multilateral area covers a larger area such as UN, WTO, UNESCO, etc. India and Brazil are committed to each other on numerous bilateral and multilateral issues such as trade, commerce, cultural exchanges, science & technology, UNSC reforms, terror, WTO and climate change and of lately, the snoop-gate issues. In this assignment, we shall study the Indian-Brazilian relations under six major segments of PESTEL analysis one by one.

POLITICALIndia and Brazil share common democratic values and developmental aspirations- large developing countries, secular, multi-cultural, multi-ethnic and trillion dollar economies. During the Cold War period, the two countries were largely insignificant, inward-looking and had protective policies- mainly due to the disagreements over decolonization of the Portuguese in India, especially Goa. However, the political cooperation of the two countries began in the 1960s. In 1964, the two countries took common positions in UNCTAD (UN Conference on Trade and Development) and the G77, followed by Ms. Indira Gandhis visit to Brazil in 1968 (first by an Indian Prime Minister). Both countries condemned the NPT (Non-Proliferation Treaty) and insisted on using the money to fight poverty rather than making ammunition and arms. Brazilian President, Fernando H. Cardoso (1995-2002) played a pivotal role in establishing India-Brazil ties: to improve bilateral trade, Indian pharma companies were invited to export generic drugs to Brazil and set up manufacturing plants there to combat HIV-AIDS, malaria and tuberculosis. In the following years, Indian Prime Minister Dr. Manmohan Singh and Brazilian President, Lula da Silva (2003-2010) took the bilateral relations of the two countries to new heights during their meetings at world economic summits, UNGA, BRIC summits, etc. Numerous agreements were signed during Silvas visits to India to strengthen the bilateral trade and cooperation on various areas of concern for the countries. Since 2011, the Brazilian President Dilma Rousseff and Indian Prime Minister, Dr. Manmohan Singh have been strengthening the India-Brazil strategic partnership following discussions on visit to the BRICS summits, IBSA Summit, and the G-20 summit all in 2011. A number of MOUs including the field of Science and Technology have been signed between the two sides.A list of MOUs/Agreements between India-Brazil can be seen below during the time period of respective Indian Prime Minister and Brazilian Presidents:Dr. Manmohan Singh and Lula da Silva: Agreement on Audio-Visual Co-Production Implementing Arrangement regarding Cooperation in Augmentation of Brazilian Earth Station for receiving and processing data from Indian Remote Sensing Satellites Agreement on Mutual Assistance in Custom Matters Academic Exchange Programme MOU on India-Brazil CEOs Forum Heads of Agreement between ONGC, OVL and Petrobras MOU between NCAER and IPEA of BrazilDr. Manmohan Singh and Dilma Rousseff: Executive Programme of Cultural Exchange 2012-2014 MOU on Cooperation under Brazilian programme Science without Borders MOU on Cooperation in the field of Biotechnology MOU on Technical Cooperation MOU between INMETRO and NABCB on mutual recognition of accreditation bodies Statement of Intent for Promotion of Gender Equality and Advancement of Rights of Women and Children Bilateral Protocol to Brazil-India Double Taxation Avoidance AgreementNarendra Modi and Dilma Rousseff: MOU on Cooperation in Field of Environment Agreement on Space MOU on Cooperation in the Establishment of a consultation mechanism on mobility and consular issuesBRICS Agreements: New Development Bank and BRICS Business School BRICS Multilateral Infrastructure Co-Financing Agreement for Africa BRICS Multilateral Cooperation and Co-Financing Agreement for Sustainable DevelopmentIBSA Agreements: MOU on Trilateral Co-operation in Agriculture and Allied Fields under IBSA Dialogue Forum Initiative MOU on Cooperation in the Field of Health and Science MOU in the Field of TourismECONOMICBrazil is the most important trading partner of India in the entire Latin American Caribbean region. The bilateral trade of India-Brazil has increased substantially over the past two decades. India's total bilateral trade (in goods) with Brazil fell to 9.5 billion dollars in 2013 decreasing by 10.7 per cent from 10.6 billion in 2012 (trade in goods and services, though, surged to an estimated US$12 billion). Imports from Brazil to India that had grown sharply in 2012 from 3.2 billion USD to 5.6 billion USD fell back as sharply over in 2013 due mainly to reduction in crude oil exports of Brazil. Brazil's share in Indian export market was about 2.6 per cent whereas Brazil's share in Indian imports is about 1.3 per cent.Diesel exports by Reliance itself account for more than 52 per cent of India's exports to Brazil, up from the forty one percent of India's exports in 2012. Other top Indian products exported to Brazil are: polyester yarn, chemical products, drugs and cotton yarn. Most of these products registered growth in 2013. The top Brazilian products imported by India are: crude oil, sugar, soy oil imports and copper.

Brazilian investment sectors in India: Automobiles, IT, mining, energy, biofuels and footwearIndian investment sectors in Brazil:IT, Pharmaceuticals, Energy, Agri-Business, Mining, Engineering and Auto Indian companies in BrazilBrazilian companies in India

MahindraMarco Polo (Automobiles)

CadillaVale (Mining)

TCS, Wipro, InfosysStefanini (IT)

Renuka SugarsGerdau (Steel)

Polaris

United Phosphorus

Dr. Reddys Laboratories and Ranbaxy

A bilateral Trade Monitoring Mechanism (TMM) has been formed by India and Brazil for periodic consultations on the trade and commerce issues. The last meeting of TMM took place in November 2013 in Brasilia. A PTA (Preferential Trade Agreement) was signed between India-Mercosur (Brazil, Argentina, Uruguay and Venezuela) regarding duty reduction of 10% to 100% of 450 items and new tariff lines have been proposed. Steps are underway to deepen the India-Mercosur PTA and link it under IBSA and SACU as well. India as has also offered Brazil to be the Partner Country in India International Trade Fair (IITF) to be held in Delhi on 14-27 November, 2014. Brazil-India CEOs Forum has been established to stimulate the trade and relations between companies of the two countries, especially the SMEs. The Brazil-India CEOs Forum alongwith FICCI (Federation of the Indian Chambers of Commerce and Industry) and the Brazilian National Confederation of Industry (CNI) would facilitate the objectives of the Forum.

SOCIALBrazilian interest in Indian culture is significantly high especially when it comes to religion, performing arts and philosophy and the first forms of Indian culture to reach Brazil were spiritual, philosophical and religious. There are various organizations in Brazil teaching Yoga and apart from them are Ramakhrishna Mission, ISKCON, Satya Sri Sai Baba, Maharishi Yogi, etc. The Brazilian colorful festivities such as dances and parades can be related to the Indian celebrations as well. The first Indian classical art to reach Brazil was Bharatanatyam. In terms of classical music, Brazilians have not only learnt Sitar, Tabla, etc but also go beyond the original rhythms to create a fusion with the Brazilian artistes. Mahatma Gandhi is highly regarded in Brazil for his non violence movement. In addition to the Indian Association in Sao Paulo, the Indian Cultural Centre in Sao Paulo has regular programs around Indian and Brazilian festivals. Indian Film Weeks and Indian Festival Weeks are organized by the Indian Embassy and Consulate in cooperation with the India Brazil Chamber of Belo Horizonte. ParametersBrazilIndia

Ethnic Make-UpWhite (55%), Black (6%), Mixed (38%) and Others (1%) Indo Aryan (72%), Dravidian (25%), Mongloid and other (3%)

ReligionsRoman Catholic (Nominal) 80%Hindu-81.3%; Muslim-12%; Christian-2.3%; Sikh-1.9% and others -2.5%

LanguagesPortuguese, English, Tupi, Arawak, CaribHindi, Urdu, Bengali, English and regional

DiversityMixed Races and ethnicities;Mestizos (Portuguese and natives)Mulattoes (Portuguese and African)Slavery abolished in 1888Intermarried racesMulti-ethnic

Family ValuesTrust- highest emphasisLarge families NepotismSense of belonging to group, specific state, region, cityClose personal tiesCant say NO

Gift EtiquettesFlowers/ gift to the hostessOrchids are very nice gift except purpleNo purple or black gifts or handkerchiefs (mourning)Gifts opened when receivedCash to familyNo white flowers (funeral)Yellow, green and red are lucky colorsNo gift of leather to HindusGifts not opened when received

Dining EtiquettesArrive 30 mins late for dinnerAn hour late for a party

Not always punctualHindus and Sikhs do not eat beef Muslims do not eat pork or drink alcohol

Relations & CommunicationDetailed knowledgeInformal communicationAcceptable to interrupt someone who is speakingFace-to-face, oral communication preferredMutual trust and respectRespectable suffix to elders

DressPride in dressing wellConservatively

Class SystemCan be racistSocial discrimination on the basis of skin colorClass determined by economic status and skin colorDarker brown skin- economically and socially disadvantagedGender inequalityHierarchyConscious of social orderPatriarchal society

TECHNOLOGICAL The first meeting of the Brazil-India Joint Commission on Scientific and Technological Cooperation was held on March 22-23, 2012. There have been discussions among the two counties for new scientific and corporate partnerships in the fields of second-generation biofuels, renewable energy, nanotechnology, biotechnology, information and communication technology, innovation, aerospace and oceanography. The Bilateral Program of Cooperation on Science, Technology and Innovation (2012-2014) as well as MOU on Cooperation in Biotechnology focused on the initiatives in the areas of health (cancer and stem cell therapy), agriculture, bio-energy, taxonomy and vaccines, etc. In the field of Information and Communications Technology, both the counties focus on the Internet global governance regime to resolve digital hiatus. Both the countries are committed to the Tunis Agenda during the World Summit on Information Society (WSIS) highlighting importance of democratization. Both the countries are also involved in the cooperation in Space Research: remote sensing, data sharing and weather forecasting. Brazil reiterated its interest in receiving images from the Indian Satellite: Resourcesat-2 in 2011. In 2013, negotiations were stressed to conclude the renewal of Complementary Arrangement on Cooperation for the Expansion of the Brazilian Terrestrial Station for the reception and processing of data from the Remote Sensing Satellites of India. Following the Snowdens disclosure of American snooping on worlds leading leaders including Brazilian President Rousseff, Indian political parties and others world over, Brazil put forward the proposal of creating its personal internet pool so that the information from the country is not shared by America but can be transferred between the BRICS countries via a specialized channel. Bilateral partnership between the two countries is also in the area of defence under the Defence Cooperation Agreeement: Research and Development of new aircrafts Integration of the Indian early warning mission systems Brazil was invited for the DEFXPO and AEROINDIA in 2013-2014 by India India has sponsored training courses for more than 25 Brazilian officials to study in India under its ITEC program: Renewable energy Computer sciences Auditing Energy Efficiency Public Administration The delegations from both the countries have expressed interest in strengthening cooperation in the areas of biomass, hydropower, solar and wind energy technologies.

ENVIRONMENTAL Brazil hosted the United Nations Conference on Sustainable Development (Rio+20) which was attended by the then Prime Minister of India, Dr. Manmohan Singh. India and Brazil highlight the importance of biodiversity at multilateral for and aim to continue cooperation and coordination at the Convention on Biological Diversity. The Copenhagen Accord of the UN Framework Convention on Climate Change is a constant area of concern for Brazil and India The BASIC countries have drafted the Copenhagen Accord in contrast to the United States. Brazil and India have been working together to implement the carbon emission regulations and also to ensure that the developed nations contribute the funds required under Montreal Protocol for the climate change program. To reduce the burden on least developing countries and developing countries Strengthen South-South Cooperation on climate change through exchange of information and common negotiating strategies at the UNFCCC. MOU on Environmental Cooperation was signed between Prime Minster of India, Narendra Modi and Brazilian President Rousseff: Extended cooperation on climate change, biodiversity, afforestation in arid areas Water conservation and protection of wetlands Waste management Management of agricultural and electronic waster Management of water waste Check on use of bio-fuels Development and installation of Environmental Information Systems Air and Water quality management Setting up Indo-Brazil Joint Working Group on Environment See that the MOU is implemented properly and efficiently. Exchange visits by experts, scholars and delegations

LEGAL Over the recent visit of Brazilian President, Rousseff in 2013, there was a technical meeting to advance the negotiations on the Agreements on Legal Assistance in Criminal Matters and on Mutual Legal Assistance in Civil Matters. Both the countries will be focusing on the Bilateral Extradition Agreement soon. Brazil-India Double Taxation Avoidance Agreement is an effort to establish international financial system on cooperation and transparency alongwith effective exchange of information in tax matters. Ratification of bilateral Agreement on Mutual Assistance on Custom Matters will strengthen cooperation between custom authorities to enforce custom laws and regulations, as well as ensuring security of logistics and trade flow. Agreement on the Transfer of Sentenced Persons will enhance closer cooperation between Brazil and India in legal assistance matters

CONCLUSIONIndia and Brazil, being developing nations, share various common goals. Both the nations have many similarities in terms of the cultural diversity, the economic law, the technological advancements and other areas. Both the nations can work together efficiently and effectively and focus more on improving their bilateral relations so as achieve the maximum mutual goodwill. With the growing economies and mass potential that the countries have they can achieve their goals as well as help each other on several fields and areas of mutual interest. They can also work together to fulfill common goals and work for the safety and betterment of the world over. After doing the PESTEL Analysis, we get to know how the countries are working towards their mutual goals and how far they can if they continue work in the same direction. Over the years, their relation has strengthened and the cultural and social environments of both the countries are very much alike, with people coming together from different backgrounds to work together.