India and Brazil Sign MSME Green Growth Pact:
A New Era for Sustainable Business
Explore the landmark agreement between India and Brazil to boost green growth for MSMEs. Learn about the key benefits, eligibility, top schemes, and how Indian businesses can leverage this pact for funding, technology, and global market access.
What is the India-Brazil MSME Green Growth Pact?
In a significant move to promote sustainable economic growth, India and Brazil signed the MSME Green Growth Pact in 2024. This bilateral agreement aims to foster collaboration between micro, small, and medium enterprises (MSMEs) in both countries, focusing on green technologies, renewable energy, and sustainable business practices. The pact is part of a broader effort to align with global climate goals while boosting economic ties between the two nations.
The agreement was formalized during the G20 summit, where both countries recognized the critical role of MSMEs in driving innovation and employment. The pact includes provisions for joint funding, technology transfer, and market access, enabling Indian MSMEs to adopt green practices and expand their footprint in Latin America. For Brazil, the pact opens doors to Indian expertise in sectors like solar energy, waste management, and sustainable agriculture.
This initiative is particularly timely for Indian MSMEs, which contribute nearly 30% of the country’s GDP and employ over 110 million people. The pact provides a unique opportunity for these businesses to access international funding, reduce carbon footprints, and enhance competitiveness in global markets. It also aligns with India’s commitment to achieving net-zero emissions by 2070 and Brazil’s goals under the Paris Agreement.
The pact is not just about funding; it’s a holistic framework that includes capacity building, policy alignment, and knowledge sharing. Indian MSMEs can now tap into Brazilian markets for green products, while Brazilian businesses can leverage Indian innovations in renewable energy and sustainable manufacturing.
Why the India-Brazil MSME Green Growth Pact Matters
This pact is a game-changer for Indian MSMEs looking to adopt sustainable practices and expand globally.
- Access to joint funding of up to ₹500 crore for green projects under the pact’s framework.
- Technology transfer and collaboration in renewable energy, waste management, and sustainable agriculture.
- Market access for Indian MSMEs in Brazil and Latin America, with reduced trade barriers for green products.
- Capacity-building programs for MSMEs to adopt green technologies and comply with international sustainability standards.
- Policy support from both governments to streamline approvals and reduce bureaucratic hurdles.
- Alignment with global climate goals, enhancing the credibility of Indian MSMEs in international markets.
Focus Areas of the India-Brazil MSME Green Growth Pact
Renewable Energy
The pact prioritizes collaboration in solar, wind, and bioenergy sectors. Indian MSMEs can partner with Brazilian firms to develop and deploy renewable energy solutions, such as off-grid solar systems and biomass-based power generation. This focus area also includes joint research and development initiatives to improve energy efficiency and reduce costs.
Sustainable Agriculture
Both countries are major agricultural producers, and the pact aims to promote sustainable farming practices. This includes the adoption of precision agriculture, organic farming, and water-efficient irrigation techniques. Indian MSMEs in agri-tech can collaborate with Brazilian counterparts to develop and export sustainable agricultural technologies.
Waste Management and Circular Economy
The pact encourages MSMEs to adopt circular economy principles, such as recycling, upcycling, and waste-to-energy solutions. Indian businesses can leverage Brazilian expertise in waste management to develop innovative solutions for plastic waste, e-waste, and industrial byproducts. This focus area also includes funding for startups working on sustainable packaging and waste reduction technologies.
Green Manufacturing
The agreement supports MSMEs in transitioning to green manufacturing processes, such as energy-efficient production, use of recycled materials, and reduction of carbon emissions. Indian manufacturers can access Brazilian markets for eco-friendly products, while Brazilian firms can benefit from Indian innovations in sustainable textiles, chemicals, and construction materials.
Top Schemes Under the India-Brazil MSME Green Growth Pact
India-Brazil Green MSME Fund
- •Jointly funded by both governments with an initial corpus of ₹500 crore.
- •Provides grants and low-interest loans for MSMEs adopting green technologies.
- •Priority sectors include renewable energy, sustainable agriculture, and waste management.
- •Applications are reviewed by a bilateral committee, with Info Tree Services assisting in preparation and submission.
Green Technology Transfer Program
- •Facilitates the transfer of green technologies between Indian and Brazilian MSMEs.
- •Includes funding for pilot projects and commercialization of sustainable innovations.
- •Covers sectors like solar energy, water conservation, and eco-friendly manufacturing.
- •MSMEs can apply for grants of up to ₹10 crore for technology adoption and scaling.
Eligibility Criteria
Indian MSMEs
- •Registered under the MSME Act, 2006, with a valid Udyam certificate.
- •Operating in sectors like renewable energy, sustainable agriculture, waste management, or green manufacturing.
- •Demonstrated commitment to adopting green technologies or sustainable practices.
- •Must have a viable business plan and financial projections for the proposed project.
Brazilian MSMEs
- •Registered as a small or medium enterprise under Brazilian law.
- •Operating in sectors aligned with the pact’s focus areas (e.g., renewable energy, sustainable agriculture).
- •Must have a partnership or collaboration plan with an Indian MSME.
- •Financial stability and a clear roadmap for project implementation.
Documents Required
Standard documents required for application under the India-Brazil MSME Green Growth Pact:
How Info Tree Services Helps You
Info Tree Services provides end-to-end support for MSMEs looking to leverage the India-Brazil Green Growth Pact.
- Identify the right funding and collaboration opportunities under the pact based on your business type and stage.
- Prepare Detailed Project Reports (DPRs) and business plans that meet bilateral committee requirements.
- Assist in partner identification and MoU drafting for collaborations with Brazilian MSMEs.
- End-to-end application support, including documentation review and submission.
- Liaison with government agencies and banks to ensure smooth approval and disbursement.
Common Myths About the India-Brazil MSME Green Growth Pact
Who Can Apply?
- Indian MSMEs registered under the MSME Act, 2006, with a valid Udyam certificate.
- Startups working on green technologies or sustainable solutions.
- Brazilian MSMEs looking to collaborate with Indian partners in green sectors.
- Manufacturers adopting eco-friendly processes or producing sustainable products.
- Agri-tech and renewable energy companies seeking international funding and market access.
- Waste management and recycling businesses aiming to scale their operations.
Complete Documents Checklist
Use this checklist before submitting your application under the India-Brazil MSME Green Growth Pact:
- •Aadhaar card of promoters/directors
- •PAN card of the business and promoters
- •Passport-sized photographs
- •Udyam registration certificate (for Indian MSMEs)
- •GST registration certificate
- •Company incorporation documents (MoA, AoA, or partnership deed)
- •Detailed Project Report (DPR) with technology details and expected impact
- •Business plan with 3-5 year financial projections
- •Collaboration agreement or MoU (if partnering with a Brazilian/Indian MSME)
- •Bank statements for the last 12 months
- •Audited financial statements (if applicable)
- •Budget plan for the proposed project
- •Proof of adoption of green technologies (e.g., certifications, past projects)
- •Market research or feasibility study (if applicable)
- •Any additional documents requested by the bilateral committee
- •Aadhaar card of promoters/directors
- •PAN card of the business and promoters
- •Passport-sized photographs
- •Udyam registration certificate (for Indian MSMEs)
- •GST registration certificate
- •Company incorporation documents (MoA, AoA, or partnership deed)
- •Detailed Project Report (DPR) with technology details and expected impact
- •Business plan with 3-5 year financial projections
- •Collaboration agreement or MoU (if partnering with a Brazilian/Indian MSME)
- •Bank statements for the last 12 months
- •Audited financial statements (if applicable)
- •Budget plan for the proposed project
- •Proof of adoption of green technologies (e.g., certifications, past projects)
- •Market research or feasibility study (if applicable)
- •Any additional documents requested by the bilateral committee
How Info Tree Fits Into Your Journey
From eligibility check to disbursement — Info Tree handles every step of your application under the India-Brazil MSME Green Growth Pact:
- Free eligibility check and scheme mapping to identify the best opportunities for your business.
- DPR preparation and documentation support to meet bilateral committee requirements.
- Partner identification and MoU drafting for collaborations with Brazilian MSMEs.
- Application filing and portal assistance to ensure timely and accurate submission.
- Post-approval support, including compliance and disbursement follow-up.
Conclusion:
The India-Brazil MSME Green Growth Pact is a landmark opportunity for Indian MSMEs to adopt sustainable practices and expand globally.
- Access to joint funding of up to ₹500 crore for green projects.
- Technology transfer and collaboration opportunities with Brazilian MSMEs.
- Market access in Latin America for sustainable products and services.
Who should act and why?
- MSMEs in renewable energy, sustainable agriculture, or waste management should explore this pact for funding and growth.
- Startups working on green technologies can leverage the pact for international collaborations and scaling.
- Businesses looking to reduce their carbon footprint and enhance competitiveness should apply now.
How Info Tree can help you get started
- Free first consultation to assess your eligibility and identify the best opportunities under the pact.
- End-to-end application support, from DPR preparation to submission and follow-up.
- We stay with you until the funding is disbursed and your project is successfully implemented.