August 1, 2023 • 30 mins
My friend and Business Networking partner Khudania Ajay joins from New Delhi, India. Ajay is host of The KAJ Masterclass Live Global Podcast Show. Today is Chat number 4 where we talk about more business opportunities in Brazil and India. India and Brazil as "Game Setters" and leadership in BRICs, the fastest growing economies that could dominate the global economy by 2050. https://youtube.com/kajmasterclass www.linkedin.com/in/ajaykhudania
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Episode Transcript
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(00:01):
Welcome to Talk to Brazil with TomRiak, the business connector to business in
Brazil. Talk to Brazil, leadingbusiness podcast talks with business experts throughout the
world. I'm Tom Bark, anAmerican known as the King of network and
connecting people from my studio in Brazil. My friend and business networking partner Kudan
(00:22):
Aj joins us again from New Delhi, India. Aj is the host of
the global podcast show The KAJ MasterclassLive, helping people learn better earn better
and today's Chat number four with Ajwhere we talk about business opportunities in Brazil
and India. Welcome to this veryspecial series on India and Brazil on the
(01:04):
kJ Masterclass Live every fortnight. Alongwith my steam friend and podcasts Tom York.
You can see him on the screen. We explode together our nation's journeys
in business, culture and politics andpodcasting as we strive to find our routeful
place in the global arena. Andas you can see, joining us life
(01:25):
from camping as Brazil is Tom NewYork who has spent his whole life there,
known as the an American known asthe King of multicultural communication and networking
with a wealth of experience in marketdevelopment and product management across diverse businesses.
Tom is the founder and host ofthree in business podcasts, a public speaker,
(01:46):
and other his dean expertise an extensivenetwork will provide invaluable insights into Brazil's
dynamic landscape. And it is indeedand today we will be talking on profitable
you know, business environment in Braziland India for companies who want to invest
here, especially small companies who willfind their liking of business environment in both
(02:08):
and both their countries. So wewill be giving Tom this whole thing over
now so that he can talk aboutthe business environment in Brazil, so that
more and more people learn about thebusiness opportunities there, about the good environment
ready for businesses to come in overdo you come? Well? Thank you
again, Ay Jane, Thanks toour people following us now. This is
(02:30):
the special series. This is ourfourth chat that we've done talking about business
and business between and in Indian Brazil. So as we gain more energy,
as we've gained more inertia from ourchats, we both have been able to
(02:53):
see and follow these last few monthsexactly what we say could happen. It's
happening. We've talked about success storieshere for small businesses, we've talked about
success stories there and here for bigbusinesses, we've talked about different markets.
We've talked a little bit about bricks, which are the which is the name
(03:15):
of Brazil, Russia, India,China and South Africa when we talk about
that group. And what I seetoday is that both India and Brazil they're
not the game changers, but Indiaand Brazil today are the game setters.
(03:38):
And why is that? The positivebusiness environment in India is known. We've
talked about that, the opportunities,that's their expansion, the multicultural influences even
within India, the number of languagesthat you've learned that you have, and
(03:58):
how to deal with culture is withinyour own country. And we've talked about
here from the Brazil standpoint that Brazilis a culture. It's still learning to
work on the global stage, allright, and to gain its own strength.
But more recently we've seen that theimportance of the two countries, right.
And I don't want to criticize anyother country out there in the world,
(04:23):
but I do want to call attentionto Indian Brazil. But we are
at present here twenty twenty three,the game setters. So we have individually
massive markets, massive opportunities that we'vetalked about. But what's happened here recently
in the Brazil economic scenario, Iwant to talk in a couple of points
(04:45):
here today. A couple of weeksago, we've seen a change in the
credit rating for the country. Sothe international credit rating agencies like Fitch and
Standard and Poor's Moody, they givea rating to a country. It's like
we have personal we have our owncredit rating. So if Tom wants to
go out and borrow money, ifAJ wants to go out and borrow money,
(05:09):
we have a credit rating. Andmaybe the bank or the lenders will
give us money, or maybe theywon't. And maybe they'll give us money
charge a higher interest rate, maybethey won't, And the same thing happens
with the country. So years ago, Brazil had what was called an investment
grade rating. That investment grade creditrating opened an avenue of investment possibilities for
(05:33):
massive investment funds they could come becausethey needed They could only invest in countries
that have investment grade. Brazil lostthat in two and fifteen. So what
happened from twenty fifteen until now,we haven't gained it, but it stopped
a number of investments coming to Brazil. And we know you can have opportunities.
(05:56):
I can have an opportunity, YouAJ can have an opportunity. But
we need resources. We need moneyto make the engine run. It's the
fuel for economic growth. It's money, and we know there's a lot of
money out there. So that wasa water on the fire from the Brazilian
Stanford for many years. So lastmonth the rating agencies started to change a
(06:24):
more favorable aspect to the Brazilian rating. It's not investment grade, but the
tendency is set. It's pointing thatdirection. And why is that. It's
not because they think it's a goodidea, but the economic indicators show that
the growth the risk in Brazil hasdropped, and risk dropping. Risk comes
(06:48):
from political stability, all right,it comes from engagement from companies and banks,
all right, A credible rating wouldI will learn, I will learn,
I will earn and learn. Iwill loan money to AJ because I
know AJR. I feel that AJwill pay me back, all right,
(07:10):
I'm comfortable with that. That's forTOM and AJ, but it's also the
same for companies and countries, allright. So that's changing, so money
is starting to flow. It hasat the beginning. They're starting to flow
again to Brasil and that's the lifelinefor any company. So that is happening.
Unemployment in Brazil has dropped slightly.The good side is that we have
(07:35):
more people working, you have morepeople economically engaged. We still have a
pool of labor for us that canstill fuel companies coming here. They will
have labor, all right, laborthat can be applied very shortly. The
(07:55):
inflation has started to drop. Inflationdropping, the prices drop, So the
prices drop, the capability of personto be able to buy more started to
happen. So all of these thingscome together at one time. So that
has helped the ratings looking towards Brazilbe more favorable. So when we see
(08:18):
this tendency for a more positive outlookgoes back to the companies, goes back
to what we've talked about. Isthis a good place to invest? Is
just a good place for Indian companiesto come, all right, And we've
talked, we've talked about the opportunities. It's there. The reverse is the
same. If Brazilian companies are morecomfortable, they see a horizon that's more
(08:45):
secure. They're also interested in goingout and developing markets. They can develop
these markets if they have access tomoney. So for a Brazilian company to
go to India, which would betoday's outlook a very favorable investment and opportunity,
(09:07):
they would also need the money.So this is the game setter that
I see that's happening. India isin a comfort zone, a certain comfort
zone as we compare to the restof the world. Brazil is also becoming
that. So when you have acomfortable business climate, that's when things really
start happening. That's when the locomotivestarts getting out of there, getting on
(09:31):
the tracks and getting out of thestation. That's what's happening right now,
and this is mid term Brazil.Historically, Brazil has always been stronger in
the second half of every year.Companies also started producing here the year end
in Brazil we talk about Christmas,which is an event here, but the
(09:52):
end of the year vacations. Thisis the time when we have the harvest
here, so more money from agricol. True press has always been a strong
second half. So my outlook forthis year is going to be very stronger
because of all of these indicators thatwe're seeing. So that's our that's our
(10:13):
word today. All right, thisis where things are going. This is
what we see in our chat numberfour. Wonderful, wonderful, this is
this is indeed a nice thing,you know. And the whole concept was
that you know, we all astogether we see our country is fighting to
(10:33):
try for you know, for therightful place in the global arena. So
I'm sure this is the great newsfor Brazil. And in a way it
also makes me happy because Brazil ispart of the bricks Brazil. We we
in India, A lot of welook at Brazil as someone like us,
part of that whole you know,if you call it a third world beat
(10:56):
were but developing very very fast andnow taking ready for that big league,
to be in the big league ofnatures. But I'm sure this step,
along with several other steps, willbring in much more strength to Brazil's economy
and also make it not only strongerfor itself, but also we'll bring that
(11:18):
strength to the bricks and also bringmuch more strength to the India Brazil partnership
going forward. And that's a greatstep. So how do you see Tom,
this particular thing, the rating divisionpositively is going to impact in terms
of that. Now, do youexpect more investment from outside into Brazil?
(11:41):
I want to say yes, becauseinvestment part of the compoundent of any investment
of any business environment. It's likea article. If you have money in
your park, and I have moneyin my park, and I think that
next month or the month after Iwill continue having money, I may be
(12:01):
enticed to spend that or applied orinvested. As an investor. If I'm
looking to countries like Indian Brazil andI see that comfort zone, I also
am more comfortable in putting my moneythere because there are options throughout the world.
What I see happening today, allright, is it Brazil and India?
(12:28):
You mentioned the third third world countries. We've we've heard them being talked
about as being the mergent economies.All right, second tier or whatever.
I think we have to find anew classification and wise and I would go
back to that. I would Iwould call us in the bricks the game
(12:52):
setters. So it isn't to bebig, big or biggest, the first
tier, second tier, whatever.But the tendencies, the economic indicators are
the same everywhere. When you lookat the international monetary fund. They're comparing
numbers all the time amongst all ofthe countries. It's like a big scoreboard,
right, and nobody wins the game, but you can favorably be positioned.
(13:18):
So again, Indian Brazil are favorablypositioned and that helps people who have
the money need to decide on whereto put it. The psychological aspect,
and it's always risk. Risk isa decision that's not made on a monthly
basis. It's made daily. Inour world today, it's made instantaneously.
(13:43):
So when I wake up here inBrazil, I already see what Asia,
what India has decided on the stockmarket. You have already decided what my
today is going to be, right, and it's already deciding what the West
coast of the United States is goingto be. So your day has already
(14:05):
happened. You've already lived a betterpart of today. So the psychology of
where are you in India going toput your money starts with that. If
you're comfortable with Brazil, you I'msaying companies in India, and companies in
India have I would say, andwe've talked about that, they do have
(14:28):
an understanding. As you mentioned,we have a feeling of comfort between countries,
right, say, the sameness isimportant, yes, yes, so
part of that if you start seeingnumbers that are more positive, you as
an investor in India, you asa CEO in India who this morning had
(14:52):
to decide on and the start ofanother month, where do we put the
money here? A company in Indiahas options everywhere, So psychologically, if
he looks or favorable or sees numbersthat are more favorable to Brazil, you
just might want to decide in thatmorning meeting in India that let's do that,
(15:16):
let's invest more in Brazil, Let'sgo there. Things are looking good,
they're looking better. So that happens. That that happens. So you
see Brazil is being decided before Brazileven wakes up. And so that's where
these numbers become important. And inboardrooms throughout the world, all right,
(15:37):
that happens every day. It's constant, the chats. We're having our chat
about Indian Brazil every fifteen days orso. But CEOs and the directors and
the CFOs and the cmos of allcompanies, they have this chat every day.
(15:58):
They may set up a monthly meeting, but daily they're checking numbers daily.
They're they're seeing what's happening. They'readjusting whatever they thought would be their
plan for July or August or September. That is being adjusted constantly. This
information flows. India is the centerof technology for all of this. India
(16:22):
has been the center for customer satisfaction, customer involvement for years. So you
have you as a as a country, you as companies. In India,
you have the pulse a you havea more feeling about many different economies.
So that's positive. So the lightback to Brazil and the engagement and these
(16:48):
numbers that come out, the ratings, inflation going down, unemployment going down,
those are the numbers of everybody's thinkingabout business every day. Brazilian business
persons the same thing right, Technologyis the same here. Companies are interacting.
(17:08):
Many companies in Brazil multinationals. They'reconnected to the world. The world's
connected to them. We have manyEuropean companies here, we have Indian companies,
we have Asian companies, American companies, Latin company everybody's here. So
these dialogues, which are instantaneous,the Excel charts happen constantly. But the
(17:33):
psychology we look at numbers a JWe do that. I do that.
You do that. We look atnumbers. We have to we have to
get inside ourselves and adjust to thosenumbers that we see. Am I going
to go? Am I not goingto go? Do I assume the risk?
And the higher you get in thecompany, the more responsible, the
(17:55):
more responsibility you have. You haveinterviewed hundreds of c eos, right and
you know more than that, that'show they think. They're looking at opportunities
with the decision stops and starts withthem, right, absolutely, absolutely,
(18:18):
most of these companies they look atinvestments, They look at that money is
saved, They look at that theirmoney invested is properly giving them the returns.
And in those aspects these ratings alsomatter and they will certainly be you
know a lot of more CEOs,more global companies will be willing to put
money into Brazil now. And I'msure a lot of Indian companies they also
(18:41):
start looking at we have been talkingabout, you know, profitable business opportunities,
especially for small businesses. Even podcastingis growing, so that also can
be one big area that you knowa lot of people can because once when
companies come in podcasting is a greatmedium for you know, marge marketing tool
for individuals, for brands, forcompanies, for coaching, for coaches,
(19:04):
for consultant. Said, when businessescome, everything come along with that and
everything else grows, even food companiesand all because there are a lot of
international people will keep on coming.And that is that's the way the economy
is connected with one thing or theother from India. In India also you
see the ratings are different now wehave also been dealing with ratings sometimes good,
(19:27):
sometimes not, sometimes very good.And this is the way. But
as of now, India has avery special place because of the global dynamics
because a lot of companies the countriesnow are looking to move away a bit
of or quite a bit of theirmanufacturing from China and it is it is
(19:48):
their choice. They want to earlieron look at China and it is it
is like if you don't want toput all your manufacturing apps into or into
one particular and that is why theyare trying to put which is the right
way to do. And India suitsthem well because of certain reasons. One,
it's raised a democracy, it's ait's a big market in itself.
(20:11):
More one point four billion people.It's not a small market. Companies like
Apple have already set up their manufacturingcapacities here, increase their manufacturing capacities here,
and that is a good thing.Other companies are also coming in the
other beyond democracy, we have gotvery good skilled labor in terms of a
(20:33):
lot of you know, either bybased technology beat any other area beat manufacturing,
and that is one thing stands outgood. It's a fairly stable place.
Some states are much more, muchmore conducive, and they are providing
a lot of benefits for companies whichare coming there. The labor ports is
also very good in terms of,you know, you don't have to spend
(20:56):
as much as you would have toin any other, say bigger countries,
even in the US or any otherplace. So this gives a lot of
you know, a lot of generallypower to companies. And this is where
India is certainly going to benefit.And I'm sure this also applies to Brail
(21:17):
companies in Brazils, even small businessesin Brazil who may want to come to
India. And the good party isthat being part of bricks. You know,
it is so this bricks, thisis this brick is a good thing
but the other bricks are not good, so it's time for some good bookcase
for both India and Brazil. Iwould say in terms of investments, well,
(21:40):
you have the orb of Bricks.The Bricks was sort of a an
idea. It was a joining ofcountries were sort of on the show for
a long time, and we've seenrecently it's it's having a more global importance.
Recently, other countries want to bepart of Bricks, which is I'm
(22:02):
gonna say something relatively new. Iwas just listening to an audio podcast about
Saudi Arabia and part of discussion therewas the interest that Saudi Arabia has in
becoming a member of Bricks. Andback to what you said, the stability
of both India and Brazil and theeconomic importance is not only from the economic
(22:30):
standpoint important for the Saudi Arabia,but when we look at the logistics a
path, one of the paths fromBrazil to India is through the Middle East,
and we're talking about logistics facilities inair cargo, air freight, or
even maritime. It basically would gothrough the Middle East. So that becomes
(22:56):
a stepping stone in both directions,and so for Indian companies and most time
is when we look at a map, we don't think of it that way,
at least here thinking west, butno, we need to go east,
and that could be through the MiddleEast as a stepping stone, a
favorable stepping stone. In terms oftransportation. Most of the air routes,
(23:18):
the flights that leave from Brazil wantingto go to India would be going through
the Middle East. So that's partof an economic equation, but also the
logistic equation of doing business. Andas you say, say manufacturing point in
India, it becomes even more importantbecause one thing is to produce, but
(23:41):
today it's to be able to produceand export globally. And that's an advantage
I see that India has, andthat's also an advantage that I think Brazilian
companies are seeing in India. They'recoming awake to geography in a different wayolutely,
absolutely, and a lot of countriesnow view India as a safe zone
(24:07):
for either investment, long term relationships, long term partnerships, long term business.
Long term you know that everything issafe. The business. Political environment
is also very stable here. Evenregional governments, as I engendered, they
are giving a lot of incentives tocompanies and now a lot of regional government
(24:30):
state governments are also separately reaching outto the outside world. So in that
aspect, we are trying to communicatethat we are very much open for business
and if you come and open yourbusiness, it will not close. It
will be very very fruitful and beneficialfor everybody. And we also want at
(24:52):
the same time, we have amake in India policy also, so this
is also enabling or giving that impetusto the mindset also that we right got
to bring companies to make in India. We have had a long history of
buying from outside, but now evenin those companies are making and we need
(25:15):
those things, we are inviting themto come make here and then send it
out to the world. We willbe your buyers here, but we also
must be a part of that manufacturingprocess. And you tell us what you
need, we will give it toyou. And in that sense, I
see that you know Brazil has alsoa great opportunity in terms of having that
(25:37):
same sameness, and I agree withyou, but I want to reiterate another
competency, another skill set that Indianshave again as the multicultural understanding and communication.
And when we look out into theworld. We see an interesting now
(26:00):
of CEOs of major corporations are Indian. Obviously they have the mental capacity to
do what they do, but partof that I see and they've shown that
is a multicultural understanding of the worldof business, and when we look to
(26:21):
other countries it's not necessarily that way. So that is an advantage. And
again that's the advantage of doing businessin and with India because that I've seen
as they challenge anywary it's a challengein Brazil. It's a challenge for Brazilian
companies to get out. They haveto develop a multicultural understanding of whatever market
(26:42):
they want to and other companies orcountries wanting to come here have to understand
the culture in Brazil and aligned tothat. But that ability to do that,
India has had it for a longtime, so I think you're probably
a couple steps forward than other placesare. And again it's leadership and how
(27:07):
to do things, how to openup your market, how to attract companies.
So I think there's a lot oflearning that PRESIL can do when it
looks to India, right right,So this is this is a good development
to way to see things and I'msure as we go by, we will
we will have more and more thingsto discuss on these aspects in this India
(27:29):
Brazil business chat between the both ofus, and I'm sure we will get
more perspective from things within the twoof us, from outside and maybe going
forward we might get more people toshare the perspective on this show. Any
final words, any that you wouldlike to share on this topic. Just
(27:51):
more of the same. I thinkpart of we're in chat number four,
what I would say is come backfor Chat number five. There will be
more, I would say, moreof the same. There will be similar
things of how we can adapt.We're learning, all right, You and
I are learning with each other andas we say, business comes from people,
it does. But again learning howto understand what the important things?
(28:15):
What if we learned in four chatsa lot. So it's a non ending
thing. It's never over, it'salways ongoing. So looking forward to being
back and chatting again. Absolutely absolutely, we both are learning. We both
both our countries are also learning andas we learn, we understand things better.
(28:40):
And then your communication, your chatswhen the world grow better, and
I'm sure this even Brazil has becomebetter at you know, communicating with the
world better and getting more investments toitself and that is such a welcome thing.
And India also looks at at thefew with a great deed of oh,
(29:00):
because we have got a lot ofthings to do and N d N
India and Bresident together also help alot of commonality and can achieve a lot
together. When this it's a rapon this very special edition of the kJ
Masterclass Life. Thank you so muchindeed for joining us. Thank you again.
(29:23):
Here's our chat number four which waslive on kJ Masterclass. You could
find more about Kudana Aj on LinkedInagain. His name is kh U d
A n I A. The lastname A j A Y. Also on
YouTube dot com slash kaj Masterclass.Thanks to our listeners and sponsor Focus on
(29:45):
My Market Intelligence specialists in market researchfor the Brazilian agricultural market, or about
them on their site FOCUSMI dot com. Talk to Tom, Talk to the
World, goodbye and thanks for listening. Thanks for listening to Tom Riach on
Talk to Brazil, the Business connectorto Brazil
Welcome to Talk to Brazil with TomRiak, the business connector to business in
Brazil. Talk to Brazil, leadingbusiness podcast talks with business experts throughout the
world. I'm Tom Bark, anAmerican known as the King of network and
connecting people from my studio in Brazil. My friend and business networking partner Kudan
(00:22):
Aj joins us again from New Delhi, India. Aj is the host of
the global podcast show The KAJ MasterclassLive, helping people learn better earn better
and today's Chat number four with Ajwhere we talk about business opportunities in Brazil
and India. Welcome to this veryspecial series on India and Brazil on the
(01:04):
kJ Masterclass Live every fortnight. Alongwith my steam friend and podcasts Tom York.
You can see him on the screen. We explode together our nation's journeys
in business, culture and politics andpodcasting as we strive to find our routeful
place in the global arena. Andas you can see, joining us life
(01:25):
from camping as Brazil is Tom NewYork who has spent his whole life there,
known as the an American known asthe King of multicultural communication and networking
with a wealth of experience in marketdevelopment and product management across diverse businesses.
Tom is the founder and host ofthree in business podcasts, a public speaker,
(01:46):
and other his dean expertise an extensivenetwork will provide invaluable insights into Brazil's
dynamic landscape. And it is indeedand today we will be talking on profitable
you know, business environment in Braziland India for companies who want to invest
here, especially small companies who willfind their liking of business environment in both
(02:08):
and both their countries. So wewill be giving Tom this whole thing over
now so that he can talk aboutthe business environment in Brazil, so that
more and more people learn about thebusiness opportunities there, about the good environment
ready for businesses to come in overdo you come? Well? Thank you
again, Ay Jane, Thanks toour people following us now. This is
(02:30):
the special series. This is ourfourth chat that we've done talking about business
and business between and in Indian Brazil. So as we gain more energy,
as we've gained more inertia from ourchats, we both have been able to
(02:53):
see and follow these last few monthsexactly what we say could happen. It's
happening. We've talked about success storieshere for small businesses, we've talked about
success stories there and here for bigbusinesses, we've talked about different markets.
We've talked a little bit about bricks, which are the which is the name
(03:15):
of Brazil, Russia, India,China and South Africa when we talk about
that group. And what I seetoday is that both India and Brazil they're
not the game changers, but Indiaand Brazil today are the game setters.
(03:38):
And why is that? The positivebusiness environment in India is known. We've
talked about that, the opportunities,that's their expansion, the multicultural influences even
within India, the number of languagesthat you've learned that you have, and
(03:58):
how to deal with culture is withinyour own country. And we've talked about
here from the Brazil standpoint that Brazilis a culture. It's still learning to
work on the global stage, allright, and to gain its own strength.
But more recently we've seen that theimportance of the two countries, right.
And I don't want to criticize anyother country out there in the world,
(04:23):
but I do want to call attentionto Indian Brazil. But we are
at present here twenty twenty three,the game setters. So we have individually
massive markets, massive opportunities that we'vetalked about. But what's happened here recently
in the Brazil economic scenario, Iwant to talk in a couple of points
(04:45):
here today. A couple of weeksago, we've seen a change in the
credit rating for the country. Sothe international credit rating agencies like Fitch and
Standard and Poor's Moody, they givea rating to a country. It's like
we have personal we have our owncredit rating. So if Tom wants to
go out and borrow money, ifAJ wants to go out and borrow money,
(05:09):
we have a credit rating. Andmaybe the bank or the lenders will
give us money, or maybe theywon't. And maybe they'll give us money
charge a higher interest rate, maybethey won't, And the same thing happens
with the country. So years ago, Brazil had what was called an investment
grade rating. That investment grade creditrating opened an avenue of investment possibilities for
(05:33):
massive investment funds they could come becausethey needed They could only invest in countries
that have investment grade. Brazil lostthat in two and fifteen. So what
happened from twenty fifteen until now,we haven't gained it, but it stopped
a number of investments coming to Brazil. And we know you can have opportunities.
(05:56):
I can have an opportunity, YouAJ can have an opportunity. But
we need resources. We need moneyto make the engine run. It's the
fuel for economic growth. It's money, and we know there's a lot of
money out there. So that wasa water on the fire from the Brazilian
Stanford for many years. So lastmonth the rating agencies started to change a
(06:24):
more favorable aspect to the Brazilian rating. It's not investment grade, but the
tendency is set. It's pointing thatdirection. And why is that. It's
not because they think it's a goodidea, but the economic indicators show that
the growth the risk in Brazil hasdropped, and risk dropping. Risk comes
(06:48):
from political stability, all right,it comes from engagement from companies and banks,
all right, A credible rating wouldI will learn, I will learn,
I will earn and learn. Iwill loan money to AJ because I
know AJR. I feel that AJwill pay me back, all right,
(07:10):
I'm comfortable with that. That's forTOM and AJ, but it's also the
same for companies and countries, allright. So that's changing, so money
is starting to flow. It hasat the beginning. They're starting to flow
again to Brasil and that's the lifelinefor any company. So that is happening.
Unemployment in Brazil has dropped slightly.The good side is that we have
(07:35):
more people working, you have morepeople economically engaged. We still have a
pool of labor for us that canstill fuel companies coming here. They will
have labor, all right, laborthat can be applied very shortly. The
(07:55):
inflation has started to drop. Inflationdropping, the prices drop, So the
prices drop, the capability of personto be able to buy more started to
happen. So all of these thingscome together at one time. So that
has helped the ratings looking towards Brazilbe more favorable. So when we see
(08:18):
this tendency for a more positive outlookgoes back to the companies, goes back
to what we've talked about. Isthis a good place to invest? Is
just a good place for Indian companiesto come, all right, And we've
talked, we've talked about the opportunities. It's there. The reverse is the
same. If Brazilian companies are morecomfortable, they see a horizon that's more
(08:45):
secure. They're also interested in goingout and developing markets. They can develop
these markets if they have access tomoney. So for a Brazilian company to
go to India, which would betoday's outlook a very favorable investment and opportunity,
(09:07):
they would also need the money.So this is the game setter that
I see that's happening. India isin a comfort zone, a certain comfort
zone as we compare to the restof the world. Brazil is also becoming
that. So when you have acomfortable business climate, that's when things really
start happening. That's when the locomotivestarts getting out of there, getting on
(09:31):
the tracks and getting out of thestation. That's what's happening right now,
and this is mid term Brazil.Historically, Brazil has always been stronger in
the second half of every year.Companies also started producing here the year end
in Brazil we talk about Christmas,which is an event here, but the
(09:52):
end of the year vacations. Thisis the time when we have the harvest
here, so more money from agricol. True press has always been a strong
second half. So my outlook forthis year is going to be very stronger
because of all of these indicators thatwe're seeing. So that's our that's our
(10:13):
word today. All right, thisis where things are going. This is
what we see in our chat numberfour. Wonderful, wonderful, this is
this is indeed a nice thing,you know. And the whole concept was
that you know, we all astogether we see our country is fighting to
(10:33):
try for you know, for therightful place in the global arena. So
I'm sure this is the great newsfor Brazil. And in a way it
also makes me happy because Brazil ispart of the bricks Brazil. We we
in India, A lot of welook at Brazil as someone like us,
part of that whole you know,if you call it a third world beat
(10:56):
were but developing very very fast andnow taking ready for that big league,
to be in the big league ofnatures. But I'm sure this step,
along with several other steps, willbring in much more strength to Brazil's economy
and also make it not only strongerfor itself, but also we'll bring that
(11:18):
strength to the bricks and also bringmuch more strength to the India Brazil partnership
going forward. And that's a greatstep. So how do you see Tom,
this particular thing, the rating divisionpositively is going to impact in terms
of that. Now, do youexpect more investment from outside into Brazil?
(11:41):
I want to say yes, becauseinvestment part of the compoundent of any investment
of any business environment. It's likea article. If you have money in
your park, and I have moneyin my park, and I think that
next month or the month after Iwill continue having money, I may be
(12:01):
enticed to spend that or applied orinvested. As an investor. If I'm
looking to countries like Indian Brazil andI see that comfort zone, I also
am more comfortable in putting my moneythere because there are options throughout the world.
What I see happening today, allright, is it Brazil and India?
(12:28):
You mentioned the third third world countries. We've we've heard them being talked
about as being the mergent economies.All right, second tier or whatever.
I think we have to find anew classification and wise and I would go
back to that. I would Iwould call us in the bricks the game
(12:52):
setters. So it isn't to bebig, big or biggest, the first
tier, second tier, whatever.But the tendencies, the economic indicators are
the same everywhere. When you lookat the international monetary fund. They're comparing
numbers all the time amongst all ofthe countries. It's like a big scoreboard,
right, and nobody wins the game, but you can favorably be positioned.
(13:18):
So again, Indian Brazil are favorablypositioned and that helps people who have
the money need to decide on whereto put it. The psychological aspect,
and it's always risk. Risk isa decision that's not made on a monthly
basis. It's made daily. Inour world today, it's made instantaneously.
(13:43):
So when I wake up here inBrazil, I already see what Asia,
what India has decided on the stockmarket. You have already decided what my
today is going to be, right, and it's already deciding what the West
coast of the United States is goingto be. So your day has already
(14:05):
happened. You've already lived a betterpart of today. So the psychology of
where are you in India going toput your money starts with that. If
you're comfortable with Brazil, you I'msaying companies in India, and companies in
India have I would say, andwe've talked about that, they do have
(14:28):
an understanding. As you mentioned,we have a feeling of comfort between countries,
right, say, the sameness isimportant, yes, yes, so
part of that if you start seeingnumbers that are more positive, you as
an investor in India, you asa CEO in India who this morning had
(14:52):
to decide on and the start ofanother month, where do we put the
money here? A company in Indiahas options everywhere, So psychologically, if
he looks or favorable or sees numbersthat are more favorable to Brazil, you
just might want to decide in thatmorning meeting in India that let's do that,
(15:16):
let's invest more in Brazil, Let'sgo there. Things are looking good,
they're looking better. So that happens. That that happens. So you
see Brazil is being decided before Brazileven wakes up. And so that's where
these numbers become important. And inboardrooms throughout the world, all right,
(15:37):
that happens every day. It's constant, the chats. We're having our chat
about Indian Brazil every fifteen days orso. But CEOs and the directors and
the CFOs and the cmos of allcompanies, they have this chat every day.
(15:58):
They may set up a monthly meeting, but daily they're checking numbers daily.
They're they're seeing what's happening. They'readjusting whatever they thought would be their
plan for July or August or September. That is being adjusted constantly. This
information flows. India is the centerof technology for all of this. India
(16:22):
has been the center for customer satisfaction, customer involvement for years. So you
have you as a as a country, you as companies. In India,
you have the pulse a you havea more feeling about many different economies.
So that's positive. So the lightback to Brazil and the engagement and these
(16:48):
numbers that come out, the ratings, inflation going down, unemployment going down,
those are the numbers of everybody's thinkingabout business every day. Brazilian business
persons the same thing right, Technologyis the same here. Companies are interacting.
(17:08):
Many companies in Brazil multinationals. They'reconnected to the world. The world's
connected to them. We have manyEuropean companies here, we have Indian companies,
we have Asian companies, American companies, Latin company everybody's here. So
these dialogues, which are instantaneous,the Excel charts happen constantly. But the
(17:33):
psychology we look at numbers a JWe do that. I do that.
You do that. We look atnumbers. We have to we have to
get inside ourselves and adjust to thosenumbers that we see. Am I going
to go? Am I not goingto go? Do I assume the risk?
And the higher you get in thecompany, the more responsible, the
(17:55):
more responsibility you have. You haveinterviewed hundreds of c eos, right and
you know more than that, that'show they think. They're looking at opportunities
with the decision stops and starts withthem, right, absolutely, absolutely,
(18:18):
most of these companies they look atinvestments, They look at that money is
saved, They look at that theirmoney invested is properly giving them the returns.
And in those aspects these ratings alsomatter and they will certainly be you
know a lot of more CEOs,more global companies will be willing to put
money into Brazil now. And I'msure a lot of Indian companies they also
(18:41):
start looking at we have been talkingabout, you know, profitable business opportunities,
especially for small businesses. Even podcastingis growing, so that also can
be one big area that you knowa lot of people can because once when
companies come in podcasting is a greatmedium for you know, marge marketing tool
for individuals, for brands, forcompanies, for coaching, for coaches,
(19:04):
for consultant. Said, when businessescome, everything come along with that and
everything else grows, even food companiesand all because there are a lot of
international people will keep on coming.And that is that's the way the economy
is connected with one thing or theother from India. In India also you
see the ratings are different now wehave also been dealing with ratings sometimes good,
(19:27):
sometimes not, sometimes very good.And this is the way. But
as of now, India has avery special place because of the global dynamics
because a lot of companies the countriesnow are looking to move away a bit
of or quite a bit of theirmanufacturing from China and it is it is
(19:48):
their choice. They want to earlieron look at China and it is it
is like if you don't want toput all your manufacturing apps into or into
one particular and that is why theyare trying to put which is the right
way to do. And India suitsthem well because of certain reasons. One,
it's raised a democracy, it's ait's a big market in itself.
(20:11):
More one point four billion people.It's not a small market. Companies like
Apple have already set up their manufacturingcapacities here, increase their manufacturing capacities here,
and that is a good thing.Other companies are also coming in the
other beyond democracy, we have gotvery good skilled labor in terms of a
(20:33):
lot of you know, either bybased technology beat any other area beat manufacturing,
and that is one thing stands outgood. It's a fairly stable place.
Some states are much more, muchmore conducive, and they are providing
a lot of benefits for companies whichare coming there. The labor ports is
also very good in terms of,you know, you don't have to spend
(20:56):
as much as you would have toin any other, say bigger countries,
even in the US or any otherplace. So this gives a lot of
you know, a lot of generallypower to companies. And this is where
India is certainly going to benefit.And I'm sure this also applies to Brail
(21:17):
companies in Brazils, even small businessesin Brazil who may want to come to
India. And the good party isthat being part of bricks. You know,
it is so this bricks, thisis this brick is a good thing
but the other bricks are not good, so it's time for some good bookcase
for both India and Brazil. Iwould say in terms of investments, well,
(21:40):
you have the orb of Bricks.The Bricks was sort of a an
idea. It was a joining ofcountries were sort of on the show for
a long time, and we've seenrecently it's it's having a more global importance.
Recently, other countries want to bepart of Bricks, which is I'm
(22:02):
gonna say something relatively new. Iwas just listening to an audio podcast about
Saudi Arabia and part of discussion therewas the interest that Saudi Arabia has in
becoming a member of Bricks. Andback to what you said, the stability
of both India and Brazil and theeconomic importance is not only from the economic
(22:30):
standpoint important for the Saudi Arabia,but when we look at the logistics a
path, one of the paths fromBrazil to India is through the Middle East,
and we're talking about logistics facilities inair cargo, air freight, or
even maritime. It basically would gothrough the Middle East. So that becomes
(22:56):
a stepping stone in both directions,and so for Indian companies and most time
is when we look at a map, we don't think of it that way,
at least here thinking west, butno, we need to go east,
and that could be through the MiddleEast as a stepping stone, a
favorable stepping stone. In terms oftransportation. Most of the air routes,
(23:18):
the flights that leave from Brazil wantingto go to India would be going through
the Middle East. So that's partof an economic equation, but also the
logistic equation of doing business. Andas you say, say manufacturing point in
India, it becomes even more importantbecause one thing is to produce, but
(23:41):
today it's to be able to produceand export globally. And that's an advantage
I see that India has, andthat's also an advantage that I think Brazilian
companies are seeing in India. They'recoming awake to geography in a different wayolutely,
absolutely, and a lot of countriesnow view India as a safe zone
(24:07):
for either investment, long term relationships, long term partnerships, long term business.
Long term you know that everything issafe. The business. Political environment
is also very stable here. Evenregional governments, as I engendered, they
are giving a lot of incentives tocompanies and now a lot of regional government
(24:30):
state governments are also separately reaching outto the outside world. So in that
aspect, we are trying to communicatethat we are very much open for business
and if you come and open yourbusiness, it will not close. It
will be very very fruitful and beneficialfor everybody. And we also want at
(24:52):
the same time, we have amake in India policy also, so this
is also enabling or giving that impetusto the mindset also that we right got
to bring companies to make in India. We have had a long history of
buying from outside, but now evenin those companies are making and we need
(25:15):
those things, we are inviting themto come make here and then send it
out to the world. We willbe your buyers here, but we also
must be a part of that manufacturingprocess. And you tell us what you
need, we will give it toyou. And in that sense, I
see that you know Brazil has alsoa great opportunity in terms of having that
(25:37):
same sameness, and I agree withyou, but I want to reiterate another
competency, another skill set that Indianshave again as the multicultural understanding and communication.
And when we look out into theworld. We see an interesting now
(26:00):
of CEOs of major corporations are Indian. Obviously they have the mental capacity to
do what they do, but partof that I see and they've shown that
is a multicultural understanding of the worldof business, and when we look to
(26:21):
other countries it's not necessarily that way. So that is an advantage. And
again that's the advantage of doing businessin and with India because that I've seen
as they challenge anywary it's a challengein Brazil. It's a challenge for Brazilian
companies to get out. They haveto develop a multicultural understanding of whatever market
(26:42):
they want to and other companies orcountries wanting to come here have to understand
the culture in Brazil and aligned tothat. But that ability to do that,
India has had it for a longtime, so I think you're probably
a couple steps forward than other placesare. And again it's leadership and how
(27:07):
to do things, how to openup your market, how to attract companies.
So I think there's a lot oflearning that PRESIL can do when it
looks to India, right right,So this is this is a good development
to way to see things and I'msure as we go by, we will
we will have more and more thingsto discuss on these aspects in this India
(27:29):
Brazil business chat between the both ofus, and I'm sure we will get
more perspective from things within the twoof us, from outside and maybe going
forward we might get more people toshare the perspective on this show. Any
final words, any that you wouldlike to share on this topic. Just
(27:51):
more of the same. I thinkpart of we're in chat number four,
what I would say is come backfor Chat number five. There will be
more, I would say, moreof the same. There will be similar
things of how we can adapt.We're learning, all right, You and
I are learning with each other andas we say, business comes from people,
it does. But again learning howto understand what the important things?
(28:15):
What if we learned in four chatsa lot. So it's a non ending
thing. It's never over, it'salways ongoing. So looking forward to being
back and chatting again. Absolutely absolutely, we both are learning. We both
both our countries are also learning andas we learn, we understand things better.
(28:40):
And then your communication, your chatswhen the world grow better, and
I'm sure this even Brazil has becomebetter at you know, communicating with the
world better and getting more investments toitself and that is such a welcome thing.
And India also looks at at thefew with a great deed of oh,
(29:00):
because we have got a lot ofthings to do and N d N
India and Bresident together also help alot of commonality and can achieve a lot
together. When this it's a rapon this very special edition of the kJ
Masterclass Life. Thank you so muchindeed for joining us. Thank you again.
(29:23):
Here's our chat number four which waslive on kJ Masterclass. You could
find more about Kudana Aj on LinkedInagain. His name is kh U d
A n I A. The lastname A j A Y. Also on
YouTube dot com slash kaj Masterclass.Thanks to our listeners and sponsor Focus on
(29:45):
My Market Intelligence specialists in market researchfor the Brazilian agricultural market, or about
them on their site FOCUSMI dot com. Talk to Tom, Talk to the
World, goodbye and thanks for listening. Thanks for listening to Tom Riach on
Talk to Brazil, the Business connectorto Brazil
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