Golden Strategies for the Evolution of Brazilian Industry in a Global Competitive Scenario

8 factors essential to the evolution of Brazilian industry: strategies to circumvent interest rates, investment in RD&I, reducing tax bureaucracy, technical education, commercial agreements, sustainable practices.

Brazilian industry faces several challenges to promote its growth and competitiveness in an unstable global economic scenario. To achieve these objectives, it is essential to implement efficient strategies that can help overcome high interest rates, in addition to constantly investing in Research, Development and Innovation (RD&I). Another crucial point for the evolution of Brazilian industry is the debureaucratization of the tax system, which currently represents a major obstacle for many companies in the sector.

It is also essential to focus on technical education, preparing qualified professionals to meet the needs of the national industry. Furthermore, fostering international trade agreements can open new markets and opportunities for the Brazilian industrial sector. Adopting sustainable and innovative practices is vital to ensure the long-term competitiveness and responsible stance of our industry on the global stage.

Low competitiveness, insufficient innovation, shortage of qualified workers, lack of infrastructure and lack of political commitment are some obstacles faced by Brazilian industry, especially in a context of fierce global competition. Since 2020, with the pandemic, the national industry scenario has shown moments of recovery, but without a concrete strategy. In 2021, there was a start of recovery in the Brazilian industrial sector, albeit with a modest growth of 3,9%, driven mainly by pent-up demand and the government's tax incentives at that time.

Growth and Recent Challenges of the Brazilian Industry

At the beginning of 2024, government data show that Brazilian industrial production suffered a retraction of 1,6% compared to the previous month, considering seasonally adjusted data. Compared to the same month last year, there was growth of 3,6%, marking the sixth consecutive increase in this analysis. For 2025, the scenario presents some optimism, but is still surrounded by uncertainty. However, some actions can promote more robust and sustained growth.

Investment in RD&I and Infrastructure in Brazilian Industry

Investment in Research, Development and Innovation (RD&I) is a crucial lever for the Brazilian industrial sector. Investing in innovation can be fundamental to foster the creation of new technologies, products and processes. Collaborating with universities, private and public companies can significantly transform the industry and increase the competitiveness of Brazilian products. Improving infrastructure is also vital; The lack of robust infrastructure impedes the efficient advancement of Brazilian industry.

Efficient ports, airports, highways and railways are necessary investments to reduce logistics costs and facilitate the production flow. Furthermore, reliable energy infrastructure and broadband expansion are crucial to advancing Industry 4.0. Another crucial point is the education and qualification of the workforce. To meet the demands of the industry of the future, Brazil must invest not only in technical education and higher, but also in continuous requalification and improvement programs to prepare the workforce for emerging challenges.

Education and Tax Simplification as Key Factors

The recent tax reform in Brazil was a significant advance in terms of reducing bureaucracy and tax simplification for Brazilian industry. Replacing five taxes with two (CBS and IBS), with a rate of 8,8% for CBS and 17,7% for IBS, results in a Dual VAT with a standard rate of 26,5%. However, there is still room for improvements, such as the introduction of advanced technologies for automating tax processes and the creation of a regulatory environment more stable and predictable, which can increase the competitiveness of companies in the international market.

Stimulating Entrepreneurship and Startups

Encouraging entrepreneurship and the creation of startups is essential for the national industry. The research carried out by Poder Empreendedor from the newspaper Poder 360° reveals a 19,5% drop in the number of companies created in 2023, falling from 2,1 million in 2022 to 1,7 million CNPJs. Known as a driver of innovation and job creation, business acceleration can be important to foster entrepreneurial culture in Brazil and encourage the emergence of new technology-based companies.

Commercial openness is equally essential. Actively participating in international trade is crucial for the growth of Brazilian industry. However, it is necessary to negotiate Commercial agreements that benefit the national industry, protecting strategic sectors and promoting the export of products with greater added value.

Sustainable Practices and Circular Economy

Sustainability is another fundamental pillar for Brazilian industry. Adopting sustainable practices and the circular economy, which promote the reuse and recycling of materials, are global trends that offer great opportunities for the Brazilian industrial sector. Effective public policies and stable also play an essential role in this context. Implementing policies that encourage consistent investments in innovation is crucial for the growth and competitiveness of Brazilian industry.

Collaboration and Transformation of Brazilian Industry

The transformation of national industry is a gradual process that requires engagement from government, companies, universities, research centers and civil society. With strategic planning, consistent investments and coordinated actions, Brazil can face challenges and explore opportunities to become a global industrial power. The union of these efforts can create a favorable environment for Brazilian industry to develop and prosper in a competitive global scenario, ensuring the sustainability and technological innovation necessary for long-term success.

Source: Press The Voice of the Industry