Its a group presentation prepared by me. in MET college. PGDM Marketing

1. Its Future Prospects
Presented by: -

2. • Acronym for an association of five emerging economies: Brazil,
Russia, India, China, and South Africa.
• Term coined by , Jim O’Neill , a global economist in Goldman Sachs
in 2001
• First Summit : Yekaterinburg, Russia on June 16, 2009.
• Entry of South Africa in 2010.

3. Key Statistics
3 Billion
people
Combined
GDP of
US$18.486
trillions
Combined
reserves of
US$ 4 trillion
Represents
18% of world
economy
Accounts for just
over $13.5-trillion of
the world's total
output

4. Need/ Importance of BRICS
• Promote the technological information exchange
• Improve the professional development and education of countries.
• Making these countries getting closer to others to obtain the comparative
advantages of these countries.
• To achieve regional development
• To remove trade barriers
• Economic development
• Optimum use of resources
• Building relationship

5. razil
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.
Textiles, chemicals , iron ore , steel and motor vehicles
industries.
31% of people in middle income group.
Brazil today is the most popular of the BRICs so far as
foreign direct investment is concerned

6. USSIA
Russia has capability in high-technology sectors
 Accounts for around 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 workforce
 Third largest exporter of steel and aluminium

7. NDIA
1.2 billion people
2nd largest labour force
Holds second place followed by China in BRICS
Democratic country
Broad knowledge economy.

8. HINA
18Th fastest growing economy
Third largest country in land size
Biggest of all BRIC nations GDP wise
13% of people comes under middle income group
Holds more than $3 trillion forex reserves.
Largest exporter/ importer for 32 and 34 countries respectively.
Cheap labour work force

9. outh Africa
The South African economy is now 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.

11. TO

12. Trade between Brazil, Russia & Rest of BRICS

13. Trade between India, China & Rest of BRICS

14. Trade between South Africa & Rest of BRICS
• Source based on UN COMTRADE and http://wits.worldbank.org/wits/

15. BRICS - Developments
Russia
• Treasury bonds – known as OFZs
• Large sporting events.
China
• Recent reforms by the China securities and regulatory Commission (CSRC) has
sought to bolster investor confidence.
• Financial help to SME’s
• 600 million citizen have been lifted out of poverty in China.
• China’s state owned enterprise produced over 50% of its goods and services and
employed over half of the nation labour force.
South Africa
• Invested Rs.300bn in expanding Its Railway, Ports and fuel pipelines.
• 10% of the world’s oil reserves, 40 % of gold ore and 95% of platinum

16. Brazil
• Development of new oil fields and refineries in order to increase production capacity
in Brazil.
• Improved efficiency of agricultural output
India
• Access to affordable drugs to global countries.
BRICS
• Signing Bilateral accords on air defense, gas and education among nation members
• 21% of world’s GDP,
• 20% Global Trade,
• 11% accumulated investments.

17. Brazil,
93.50%
Russia,
99.60%
India, 74.04%
China,
95.10%
South Africa,
93%
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
Brazil Russia India China South
Africa
Literacy rate (2013)
0.744 0.778
0.586
0.719
0.658
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
Brazil Russia India China South
Africa
HDI(2013)
0
10
20
30
40
50
60
70
BRAZIL RUSSIA INDIA CHINA SOUTH
AFRICA
Percent(%)
Trade(as % GDP)
2010 2011 2012 2013 Linear (2010)
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
BRAZIL RUSSIA INDIA CHINA SOUTH
AFRICA$(inmillion)
Exports
2010 2011 2012 2013

18. 0
500,000
1,000,000
1,500,000
2,000,000
Brazil Russia India China South
Africa
$(inmillion) Imports
2010 2011 2012 2013
13773
20541
4549
9053
11426
15034
24120
5410
11904
12504
0 5000 10000 15000 20000 25000 30000
Brazil
Russia
India
China
South Africa
$
GDP per capita
2013 2010
2.5
2.8
1.6
4.6
1.0
3.6 3.8
0.0
3.8
2.3
BRAZIL RUSSIA INDIA CHINA SOUTH
AFRICA
Percent(%)
Foreign direct investment, net
inflows (% of GDP)
2010 2013

21. Comparison of
developed (G7)
countries with the
emerging (BRICS)
nations.

22. GDP 2014 in billion dollars
1,825
2,737
3,636
2,072
4,902
2,536
16,800
2,243 2,118 1,871
9,181
351
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000

23. GDP rate of change YOY

24. Population
0
200,000,000
400,000,000
600,000,000
800,000,000
1,000,000,000
1,200,000,000
1,400,000,000
1,600,000,000

25. Foreign Direct Investment flows

26. FDI flows 2011-2014 (no of times)

27. Foreign exchange reserves
1,296
239 172 173 95 148 66
3,213
499 352 299 49
0
500
1,000
1,500
2,000
2,500
3,000
3,500
$inbillions
1,283
208 157 154 143 144 75
4,009
478 376 319 48
0
1,000
2,000
3,000
4,000
5,000
2011
2014

28. Growth rate of new business
formation
• Gap between the G7 nations and BRICS economies narrowed in 2013,
according to research.
• BRICS had a rate of over seven times greater than the G7 countries
from 2007-2011, posting a 5.8 percent Combined Annual Growth Rate
(CAGR) versus a 0.8 percent increase by the G7.
• In 2012 the BRICS rate was 4.9 percent, generating 1.2 million new
businesses & G7’s was 1.9 percent, adding 531,000 companies.
• China grew at 9.1 %.
• Brazil grew by 3.4 %.
• France exhibited the fastest rate of 16.7 %.
• Italy declined by 0.3 % and Canada dropped by 13.6 %.
• The report indicates that well targeted government interventions can
boost the survival rates of startup companies that require time and
capital to translate their competitive assets into sustainable growth.

29. Future Prospects
Sustainable solution for inclusive growth
• Broadening multi-dimensional co-operation
• Mutual Trade and Investment
 New Development Bank (BRICS Bank)
• Lending for Infrastructure projects
• Aid to other small economies
 Contingent Reserve Arrangement
 Export Credit & Guarantee Agencies
 Significant Role in International Affairs
 Trade in local currency

30. Working Population across the World

31. Rising Middle Class

32. Infrastructure Investments

33. Growth and Demand

34. GDP & Per capita Income

35. Development of BRICS bank
Reducing the rural/urban income gap
Maintaining macroeconomic stability
Inadequate Financial reforms
Managing Supply Chain

36.  Dependenc
y on oil
 Corruption
 Industrial
output is weak
 Inefficient
Judicial
System
 Illiteracy
 Lack of
Infrastructure
 High Inflation
 Economic
disparity
 48%
population
below poverty
line
 Lack of skill
sets,
particularly in
IT

37. Conclusion
It is possible that China could become as big as the US by 2027
India and Russia will individually be larger than Spain, Canada or Italy by 2020
 By 2025 BRICS will be over half the size of the G7
Long-term projections BRICs could account for almost 50% of global equity markets by 2050
 Of the current G7, only the US and Japan may be among the seven largest economies in US
dollar terms in 2050
By 2050, the largest economies in the world (by GDP) may no longer be the richest (by income
per capita)

38. Thank You