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Introduction

A grouping acronym referring to the countries of Brazil, Russia, India, A grouping acronym referring to the countries of Brazil, Russia, India,

and China. Term was first prominently used in a Goldman Sachs report from

2003. These countries aren’t a political alliance - but they have the

potential to form a powerful economic bloc These four countries are among the biggest and fastest growing

emerging markets Already BRIC accounts for:

o 40 per cent of the world's population,o 25.9 per cent of its total geographic area, o 40 per cent of global GDP

Dreaming with BRIC : The path to 2050

China’s economy will surpass Germany in the next few years , Japan by 2015, and the US by 2041.

India’s growth rate will be the highest-not China’s and it will overtake Japan by 2032.

BRIC currency could appreciate by 300% over the next 50 years.

INDIA A Wise Elephant

Trends

Number of people in absolute poverty has declined sharply

Exports have boomed

Foreign exchange reserves are ample for the first time in history

Newfound economic dynamism has shifted the balance of leaders’ priorities from geopolitical goals to mutual economic interests.

Russia-A smooth political transition

An “easy case” for globalization Undue emphasis on economics over politics Disregard of cultural values Russia can still benefit from a globalized world without undertaking painful reform.

THE ‘B’ IN BRIC:Unlocking Brazil’s Growth POTENTIAL

The uneasy emergence of an economic leader in Latin America

One of the fastest growing economies in the last century But over-reliance on agricultural commodity exports resulted in a

development marked by boom and bust Focus on equitable development has resulted in significant poverty

reduction Brazilian economy becoming less dependent on exports A global leader in renewable fuels.China- Unleashing The ‘Caged Tiger’ China’s successes are associated with liberalization and globalization. China focused not only on opening economy, but also on institutionalizing

globalization Assimilation of best practices from across the globe

Emerging Markets-Opportunities of BRIC

• High growth rates• Increased foreign direct investments• Huge investments in infrastructure• Huge middle class boosting demand• Abundant supply of educated cheap workforce• High potential for outsourcing work specially India• Domestic/global mergers/acquisitions• Technology up gradations• Abundant agri/mineral resources• Commodity markets expanding fast

Emerging market-challenges of BRIC

• Volatile markets• Unstable macro-economic policies• Natural disasters• Setback in rain dependent agri sector bring downGDP growth rates• Currency appreciation for export led economies• Weak infrastructure• Slowdown in FDI/increasing interest rates in USA• Steep increase in energy cost

BRIC SUMMIT• BRIC countries met for their first summit on 16

June 2009, in Yekaterinburg, Russia, discussed the current global financial crisis, global development.

• Attacked the rule of dollar as the primary international currency and suggested new global reserves currency, i.e. diversified, stable and predictable

• The 2010 BRIC summit took place in Brasilia, Brazil on April 16, 2010. This was the second BRIC summit.

Importance of BRIC

The importance of BRIC in the world economy has increased manifold since the acronym was first coined nearly seven years ago. Few could have imagined then how the American economy would collapse and bring down with it much of the rest of the world. It is worth revisiting the original formulations on the significance of these four major countries that were made by representatives of a major American investment bank.

BRIC ImportsBRAZIL RUSSIA INDIA CHINA

Total imports 187.7 billion (dollar)

237.3 billion (dollar)

327 billion (dollar)

1.307 trillion (dollar)

Commodities imports

Machinery, electrical and transport equipment, chemical products, oil, automotive parts, electronics.

Machinery, Vehicles, Pharmaceutical products, plastic, semi-finished metal products, meat, fruits and nuts, optical and medical instruments, iron, steel.*

Crude oil, precious stones, Machinery, fertilizer, iron and steel, chemicals.

Electrical and other Machinery, oil and minerals fuels, opticals and medical equipment, metal ores, plastics, organic chemicals.

Imports-partners US, China, Argentina, Germany, Japan.

Germany, China, Ukraine, Italy, US.

China, US, Saudi Arabia, UAE, Australia, Germany, Singapore.

Japan, Hong Kong, South Korea, US, Taiwan, Germany.

BRIC ExportsBrazil Russia India China

Total exports 199.7 billion (dollar)

376.7 billion (dollar)

201 billion (dollar)

1.506 trillion (dollar)

Exports-commodities

Transport equipment, iron ore, soybeans, footwear, coffee, autos.

Petroleum and petroleum products, natural gas, metals, wood and wood products, chemicals, civilian and military manufactures.

Petroleum products, precious stones, machinery, iron and steel, chemicals, vehicles, apparel.

Electrical and other machinery, data processing equipment, apparel, textiles, iron and steel, optical and medical equipment.

Exports-partners China, US, Argentina, Netherlands, Germany

Netherlands, Italy, Germany, China, Turkey, Ukraine.

UAE, US, China US, Hong Kong, Japan, South Korea, Germany.

Economic trends of BRIC countries Sub-prime mortgage prices Foreign Investment Evolving Economies

Comparative analysis of BRIC countries

BRAZIL• Higher income, higher

education• More not working• More nascent

entrepreneurs• Less established

entrepreneurs

RUSSIA• More nascent

entrepreneurs• Less owners of

functioning business• Less think that new

business leads to high level of status and respect

INDIA• More females• More home makers• Lower income, lower

level of education• More not working• More nascent

entrepreneurs• Less owner of

functioning business

CHINA• Less negative business

experience• More work part time• Higher income, higher

level of education• More nascent

entrepreneurs• Less established

entrpreneurs

Conclusion

BRIC accounts for 15% of the global economy and 42% of global currency reserves. Between 2000 and 2005 BRIC contributed roughly 28% of global growth in US dollar terms and 55% In purchasing power parity terms.

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