Presentation on brics

PRESENTATION BY:-
AMAN LODHA
PUSHKARA BHONSLE
ANKUSH MANGAL

 BRICS stands for Brazil, Russia, India, China
 Goldman Sachs predicted in 2001 that some leading economy of the
world will emerge to give competition to western world..
 BRIC is an international political organization of leading emerging
economies, its Five members are all developing industrialized countries.
 Biggest and fastest growing emerging economies.

 South Africa has been asked to join the BRIC
group of major emerging markets.
 Officially admitted as a BRIC nation on December
24, 2010
South Africa stands at a unique position to
influence African economic growth and
investment

China is South Africa’s largest trading partner
India wants to increase commercial ties with Africa
South Africa was brought into BRIC, "not only
South Africa but a larger African market of a billion
people,"

1-To achieve regional development
2-To remove trade barriers.
3-Economic development.
4-Optimum use of resources.
5-Builiding relationship.

 The BRIC countries met for their first official
summit on 16 June 2009, in Yekaterinburg,
Russia.
 To Discuss the current global financial crisis,
global development, and further strengthening of
the BRICS group.

The Fourth BRICS Summit was hosted in New Delhi on 29
March 2012 under the theme of “BRICS Partnership for Global
Stability, Security and Prosperity.” The Summit has imparted
further momentum to the BRICS process of planning a joint
development bank.

 Already BRICS accounts for:
 46 per cent of the World's Population,
 25.9 per cent of its Total Geographic Area,
 30 per-cent of Global GDP
 By 2050, BRICS countries expected to
accounts 60% of global GDP.

BRICS could be larger economies than the United
States and the developed economies of Europe
within 40 years.
China and India will become world’s
dominant suppliers of
manufactured goods and
services
 Brazil and Russia will become
dominant suppliers of
raw materials.

 10th fastest growing economies in the last centuries.
 Extremely rich in resources such as coffee, sugarcane, crude oil
and iron etc.
 Focus on equitable development has resulted in significant
poverty reduction.
 Brazil today is the most popular of the BRICs so far as foreign
direct investment is concerned.
12

 20% of the world’s oil and gas reserves.
 Fall in the number of people living below the poverty line.
 Consumer market of over 140 million people.
 68% of people comes under middle income group.
 Highly educated work force is available.
 Third largest exporter of steel and aluminium
13

 1.2 billion people.
 2nd largest labour force.
 Holds second place followed by China in BRICS.
 Approximately 2.5 million college graduates per year.
 Broad knowledge economy.
14

 Second Largest economy
today.
 Third largest country in land size.
 China is the world’s largest exporter of merchandise goods.
 13% of people comes under middle income group..
 Holds more than $3 trillion forex reserves.
 The Private Sector is the main driver of growth and employment.
15

 The South African economy is
the 23rd largest in the world.
 Inflation is below 6.6% and falling.
 25% of goods produced in South Africa are for export.
 Richest in terms of its mineral reserves.
16

18
•The BRICS Countries make up 18 % of Global GDP. They have increased
their share of Global GDP threefold in the past 15 years.
•The BRICS are home to 46 % of the World's Population and 26% of the
planet's land mass.
•The BRICS Nations have combined Foreign Reserves of an estimated $4.4
trillion.
•Intra-BRICS trade flows reached $282 billion in 2012 and are estimated to
reach $500 billion by 2017.
•According to statistics of the World Trade Organization (WTO), the
participation of BRICS in Global Exports have doubled between 2001 to
2011, from 8% to 16% respectively.
•Between 2010-2012, BRICS´ International Trade rose 29%, i.e from $4.7 to
$6.1 trillion dollars.

 India is also expected to grow faster than China after 2020.
 Rising incomes in the BRICs nations will create a new middle
consumer class in the world.
 All BRIC countries have accumulated great levels of
Foreign Exchange reserves.
 Expansion of consumer markets and the rise of Multinational
Companies.
 BRIC countries will have a comparative advantage in
development patterns.
19

 The dominance of the Chinese economy and its role in
trade relations makes the BRICS much more of a China-
with-partners group than a union of equal members.
 BRICS countries lack mutual economic interests.
 BRICS members lack common understandings about
priorities that are necessary for productive sharing of
experiences.
 Different view-points and influence in the international
arena. 20

 The global financial meltdown of 2008 has not left the
economies of Brazil, Russia, India, China & south
Africa known as the BRICS club injured.
 As the developed world faces recession, BRICS growth
is inevitably set to slow.
 Yet strong foreign exchange reserves and growing
domestic demand has allowed BRICS to with stand the
crisis and continue growing, strengthening their
position as a major consumer market.

 India has provided loans of more than $200million to
the African countries since 2010
Š
 China has invested almost $4000 million as foreign
direct investment.
Š
 Russia too has contributed more than $3000million as
FDI
Š
 Brazil has invested around $4000 million in Africa.

 Strong consumer demand, which could take the lead
as the prime engine for growth.
Š
 High levels of foreign exchange reserves.
 foreign exchange reserves will allow governments to
boost public spending in order to support the
economy. This could take the form of social benefits to
encourage consumers to spend more

 Inclusive growth
BRICS economies could become a much larger force in
the world economy.
BRICS maintain policies and develop institutions that
are supportive of growth

BRICS nations are going to develop a joint bank within the
BRICS nations for assistant them self on July 2014
(Treaty signed) July 2015 (Treaty in force)

And to meet the following reasons:
o Growing emerging markets.
o Climate change, food and energy security,
o International economic exchange.
o Financial assistant.
o Population control

 To establish a development bank to balance the influence of the
World Bank and IMF, as well as creating a joint foreign exchange
reserve.
 Business
 Competitiveness
 Governance & Leadership
 Science & Technology
 Poverty
 Private Sector & Prevention of Corruption
 Investment Landscape
 Innovation in building Infrastructure
 Trade
 Healthcare

Egypt, Argentina, Iran, Nigeria, Syria and
most recently Bangladesh have expressed interest in
joining BRICS to increase the share capital and
become a member of the New Development Bank
established by the BRICS Nations.
29

Strength of the BRICS nations
1- To use resources.
2-Market opportunities.
3-Economic developments.
Weakness of the BRICS nations
1- Population problem.
2- lack of Infrastructure.
3- Decreasing GDP growth rate.

Opportunities of the BRICS nations
1- To expand the market.
2- Regional development.
3-Monetry resources.
Threats of the BRICS nations
1-Financial crises.
2- Threats from other unions.
3-dollar role

BRICS doesn’t have a concrete and constructive agenda for
change or vision for a future world order.
 China is the muscle of the group and the Chinese know it.
They have effective veto power over any BRICS initiatives

 BRICS nations have the potential and the resources to form a
powerful economy with greater opportunity than any other nation.
 If the government of India takes speedy and effective measures to
overcome these challenges in FDI attraction and given a few years
with those developments India will definitely overtake Brazil and
Russia and its increase competitiveness at par with its global
competitors.

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