Mumbai: Brazil, the world's largest producer of ethanol, has thrown open sugarcane farming and ethanol extraction in the country to Indian companies for exporting it back to India for mixing in petrol.

"They can buy ethanol manufacturing companies, invest in cane farming and producing ethanol," visiting Brazalian minister of state for industry and foreign trade Miguel Jorge said after a meeting with petroleum minister Murli Deora.

Brazil, he said, was encouraging India to raise the percentage of ethanol in petrol and would allow companies investing in ethanol production in Brazil to export the green fuel back home. While India uses petrol mixed with five per cent ethanol, Brazil uses petrol made up of one-fourth ethanol.

The Indian government is planning to double ethanol quantity in petrol to 10 per cent from October.

Public sector fuel retailers like Indian Oil, Hindustan Petroleum and Bharat Petroleum are already in talks with various companies in Brazil for sugarcane farming and joint production of ethanol.

Meanwhile, trade between India and Brazil, which grew 57 per cent in the first two months of this year - at nearly double the rate in 2007 - is expected to take two-way trade to $10 billion by 2010, the Brazilian minister said.

Brazil bought $411 million of goods in January and February from India, a growth of 62 per cent from a year earlier, while its sales to India grew 46 per cent to $155 million, he said.

Two-way trade in 2007 grew 30 per cent to $3.1 billion.

India imports crude oil, minerals and ores, iron and steel, soyoil and aircraft from Brazil, and sells diesel, organic chemicals, engineering products and pharmaceuticals.

In 2007, diesel made up half of Brazil's imports from India, while crude oil made up a fifth of its sales to India.

India and Brazil also discussed ways to help the developed world cope up with the economic slowdown.

The two BRIC countries reviewed ways for the two emerging market economies to maintain their growth to avert deeper crisis in the world economy.

A report, brought out by Goldman Sachs, meanwhile, says the four BRIC economies would be the major drivers of the world economy by 2050.

"In the face of slowdown in global economy, India and Brazil have to play the role of engines of growth. It is not only important for India and Brazil but also for the world economy," Nath told reporters after the meeting.