Why India Must Go Beyond ‘Buy Local’ and Follow Brazil’s Lead
Prime Minister Narendra Modi with Brazil's President Luiz Inácio Lula da Silva ! (Image X.com)
Why India must pivot to a Brazil-like toolkit now: Brazil’s strategy is clear-eyed: cash, credit, insurance, procurement. India’s is mixed: slogans, slow credits, delayed rollout.
By P SESH KUMAR
NEW DELHI, August 28, 2025 — India’s high-stakes showdown with Trump’s 50 percent tariffs is no time for slogans. While Brazil rolled out cash, credit and direct procurement to shield its exporters, India’s actions have been gradual and less impactful.
It must escalate—from loan guarantees and a ₹20,000‑crore export push, to cotton duty relief and a bold “Brand India” campaign. Otherwise, millions of textile workers, shrimp farmers, jewellers and manufacturers could be pushed to the wall. This is the moment for strategic, action‑packed policymaking—not just defiance.
India’s leaders are right to call Washington’s 50 percent tariffs “unjustified, unfair and unreasonable,” and to lean on Atmanirbhar Bharat and Vocal for Local. But talking toughness and urging citizens to buy Indian don’t create jobs or keep roofs over exporters’ heads. Brazil has already shown a bolder playbook—and India cannot afford to lag behind.
Let’s break it down in plain terms
When Brazil got walloped by Trump-like tariffs, it didn’t say “Americans are arrogant—buy Brazil.” Instead, it unleashed a 30-billion‑reais support package—credit lines, tax deferrals, export insurance and direct government buys of acai, honey, shrimp for state programs. And on August 22, its development bank BNDES threw in another 10-billion‑reais credit line to keep businesses afloat and free them to explore new markets.
India’s response? So far, it’s been more of a whisper than a battle cry. Yes, exporters and trade bodies have asked for help, and the government has proposed relief. The Commerce Ministry has consulted affected sectors and is “considering” support measures, including financial aid and cheaper credit.
There are real steps underway—India plans to launch a ₹20,000‑crore Export Promotion Mission by September 2025 to cushion exporters and bolster India’s global presence (“Brand India”).
On the banking side, the Finance Ministry has proposed a credit guarantee scheme—banks can lend to small businesses and exporters flagged as stressed, backed by 10–15 percent government guarantees, with ₹40 billion earmarked. There’s also talk of term loans with 70–75 percent guarantees in the next budget.
Textile exporters are getting a helping hand, too: the government extended the import duty exemption on cotton until December 31, 2025, to keep raw material costs under control.
On the diplomatic front, Modi is hitting regional airwaves hard—touring China, Japan and Russia, cultivating deeper ties, investment and supply chain pacts. Japan is reportedly ready to pump up to 10 trillion yen into Indian high‑value manufacturing over the next decade. Meanwhile, our embassies and Export Promotion Councils are scrambling to open 40 alternative textile markets—from the UK and Germany to Canada, Argentina and Australia.
These moves are real and necessary—but they’re reactive, slow to land, and lack the urgency of Brazil’s model. What’s worse, they still lean heavily on narrative— “self-reliance,” “Make in India,” “Brand India”—without the commensurate rapid-fire support that businesses desperately need right now, especially in labour-intensive sectors like textiles, shrimp, gems, vehicles, organic chemicals, and engineering goods.
Why India must pivot to a Brazil-like toolkit now: Brazil’s strategy is clear-eyed: cash, credit, insurance, procurement. India’s is mixed: slogans, slow credits, delayed rollout. Brazil protected jobs, prevented bankruptcies, preserved market share. India’s exporters face futures full of jeopardy unless bold policy steps are launched—fast.
India must stop rehearsing indignation and start acting boldly. It needs to operationalize its ₹20,000‑crore mission, guarantee working capital now, not later, and roll out emergency purchase schemes—government buys of affected products (shrimp for welfare programs, textiles for stocks, etc.). Strategic tax deferrals and duty drawbacks must be frontloaded.
A special export insurance facility must be launched immediately. And alongside, trade missions, accelerated FTAs, and diversification must be turbocharged.
Put simply: conversations are no longer enough. India must do what Brazil did—inject capital, secure markets, and shield livelihoods. That’s how you fight tariffs—not with rhetoric, but with real rescue.
Let’s ditch the fanfare and deliver something that matters—right now.
(This is an opinion piece, and views expressed are those of the author only)
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