Assignment

on
PESTEL ANALYSIS
(India and Brazil)






Submitted To: Submitted By:



PESTEL ANALYSIS
PESTEL 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.
Organization
Political
Factors
Economic
Factors
Social
Factors
Technological
Factors
Environmental
Factors
Legal
Factors
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 Factors Economic Factors
Bureaucracy Tariffs
Corruption Subsidies
Tax Policy Trade Control
Freedom of Press Regulations
Growth Rates Price Fluctuations
Inflation Rates Stock Market Trends
Exchange Rates Labor Costs
Disposable Income Credit Availability
Social Factors Technological Factors
Lifestyles Age
Habits Social Classes
Religion Family Size
Population Education
Infrastructure R & D
Innovation
Incentives
Access to New Technology
Environmental Factors Legal Factors
Weather Waste Management
Climate Change Green Concept
Pollution Renewable Energies
Recycling
Copyrights Health & Safety Law
IP Law Anti-Trust Law
Employment Law Discrimination Law
Consumer Protection Law

INDIA
CAPITAL New Delhi
INDEPENDENCE 15th August, 1947

OFFICIAL LANGUAGE Hindi, English
LARGEST CITY Mumbai
GOVERNMENT Federal Parliamentary Constitutional Republic
- President Pranab Mukherjee
-Prime Minister Narendra Modi
-Chief Justice Rajendra Mal Lodha
LEGISLATURE Parliament of India
-Upper House Rajya Sabha
-Lower House Lok Sabha
CURRENCY India Rupee
POPULATION 1,210,193,444
GDP $5.425 trillion (PPP);
$1.966 trillion (Nominal)





BRAZIL
CAPITAL Brasilia
INDEPENDENCE 7th September, 1822

OFFICIAL LANGUAGE Portuguese
GOVERNMENT Federal Presidential Constitutional Republic
- President Dilma Rousseff
-Vice President Michel Temer
-President of Supreme Ricardo Lewandowski
Federal Court
LARGEST CITY Sao Paulo
LEGISLATURE National Congress
-Upper House Federal Senate
-Lower House Chamber of Deputies
CURRENCY Real
POPULATION 202,656,788
GDP $2.505 trillion (PPP);
$2.215 trillion (Nominal)




INDIA & BRAZIL PESTEL ANALYSIS
The 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 16
th
and 18
th
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.



POLITICAL
India 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 Brazil
Dr. 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 Agreement
Narendra 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 issues
BRICS 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
Development
IBSA 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 Tourism
ECONOMIC
Brazil 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 footwear
Indian investment sectors in Brazil:
IT, Pharmaceuticals, Energy, Agri-Business, Mining, Engineering and Auto

Indian companies in Brazil Brazilian companies in India
Mahindra Marco Polo (Automobiles)
Cadilla Vale (Mining)
TCS, Wipro, Infosys Stefanini (IT)
Renuka Sugars Gerdau (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.





SOCIAL
Brazilian 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.
Parameters Brazil India
Ethnic Make-Up
White (55%), Black (6%),
Mixed (38%) and Others
(1%)
Indo Aryan (72%),
Dravidian (25%), Mongloid
and other (3%)
Religions
Roman Catholic (Nominal)
80%
Hindu-81.3%; Muslim-12%;
Christian-2.3%; Sikh-1.9%
and others -2.5%
Languages
Portuguese, English, Tupi,
Arawak, Carib
Hindi, Urdu, Bengali,
English and regional
Diversity
Mixed Races and ethnicities;
Mestizos (Portuguese and
natives)
Mulattoes (Portuguese and
African)
Slavery abolished in 1888
Intermarried races
Multi-ethnic

Family Values
Trust- highest emphasis Sense of belonging to group,
Large families
Nepotism
specific state, region, city
Close personal ties
Cant say NO
Gift Etiquettes
Flowers/ gift to the hostess
Orchids are very nice gift
except purple
No purple or black gifts or
handkerchiefs (mourning)
Gifts opened when received
Cash to family
No white flowers (funeral)
Yellow, green and red are
lucky colors
No gift of leather to Hindus
Gifts not opened when
received
Dining Etiquettes
Arrive 30 mins late for
dinner
An hour late for a party

Not always punctual
Hindus and Sikhs do not eat
beef
Muslims do not eat pork or
drink alcohol
Relations &
Communication
Detailed knowledge
Informal communication
Acceptable to interrupt
someone who is speaking
Face-to-face, oral
communication preferred
Mutual trust and respect
Respectable suffix to elders

Dress
Pride in dressing well Conservatively
Class System
Can be racist
Social discrimination on the
basis of skin color
Class determined by
economic status and skin
color
Darker brown skin-
economically and socially
disadvantaged
Gender inequality
Hierarchy
Conscious of social order
Patriarchal 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:
o Research and Development of new aircrafts
o Integration of the Indian early warning mission systems
o 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:
o Renewable energy
o Computer sciences
o Auditing
o Energy Efficiency
o 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
o The BASIC countries have drafted the Copenhagen Accord in contrast to the
United States.
o 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.
o 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:
o Extended cooperation on climate change, biodiversity, afforestation in arid
areas
o Water conservation and protection of wetlands
o Waste management
o Management of agricultural and electronic waster
o Management of water waste
o Check on use of bio-fuels
o Development and installation of Environmental Information Systems
o Air and Water quality management
o Setting up Indo-Brazil Joint Working Group on Environment
See that the MOU is implemented properly and efficiently.
o 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




















CONCLUSION
India 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.