Presentation on BRICS and Its Future

1. BRICS & Its Future.
Harish Patidar (47)
PGDM, MET, Bandra, Mumbai

2. Introduction
 BRIC an acronym floated in November 2001
 Term coined by Jim O’Neill, a global economist at Goldman Sachs
 Fastest growing group of economies
 First Summit: Yekateringburg, Russia on June 16, 2009
 Entry of South Africa in June 2010
 7th Summit in July 2015 at Ufa, Russia
 8th Summit will be in 2016 at New Delhi, India

3. Key Statistics
3 Billion
people
lives in
BRICS
Combined
GDP of
US$
16.039
trillion
15% of
world’s
export
volume
US$ 4
trillion of
Foreign
reserves

4. 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. Foreign Exchange Reserves (2015)
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
BRAZIL RUSSIA INDIA CHINA SOUTH AFRICA
362,744 358,500 352,131
3,899,285
47,190
Foreign Exchange Reserves (2015)
In USD

6. Imports (2015)
0
200
400
600
800
1000
1200
1400
1600
1800
Brazil Russia India China South Africa
278.8
358.1
500.3
1,780.00
106.8
Imports
In USD billions

7. Exports (2015)
0
500
1000
1500
2000
2500
Brazil Russia India China South Africa
396
542.5
462.21
2,021.00
101.2
Exports
In USD billions

8. 0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
BRAZIL RUSSIA INDIA CHINA SOUTH AFRICA
0.744
0.778
0.586
0.719
0.658
HDI
HDI

9. The BRICS: Three Things to
Know

10. 1. Diverse but Cooperative

12. GDP Prediction
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
China USA India Brazil Russia Japan UK Germany
Goldman Sachs prediction about top 8 nations
2050 2040 2030 2020 2015 2010

13. 2. Financial Alternatives
 New Development Bank: $50 billion
 Contingency Reserve Arrangement: $100 billion

14. 3. Inclusive Multilateralism
 Role of other countries
 China’s influence through other channels

15. Travel & Tourism-Future prospect
Brazil
-Tourism contributes 8.6% of GDP
-Host for Olympics in 2016

16. Russia
-Expected to grow by 4%
-FIFA World Cup will be held in 2018 i.e after Brazil

17. India
-Expected to grow at 7.9%
-Benefits other industries

18. China
-Would be most visited country by 2020
-Continues to grow at 14.2%

19. South Africa
-Famous for eco-tourism
-Prominent contributors of GDP

20. Introduction of 5G
 Man behind 5G technology is Miao
Wei
 Currently being developed in China
 10 times faster than an optical fiber
connection
 Capable of fundamentally changing
the balance of force in the field of
technological control

21. BRICS - CHALLENGES
 Reducing the rural/urban income gap
 Maintaining macroeconomic stability
 Inadequate Financial reforms
 Managing Supply Chain

22.  Industrial
output is
weak
 Inefficient
Judicial
System
 Dependency
on oil
 Lack of
Infrastructur
e
 Illiteracy
 Lack of
Infrastructure
 High
Inflation
 Economic
disparity
 48%
populatio
n below
poverty
line
 Lack of
skill sets,
particula
rly in IT

23. 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)

24. THANK YOU !