ITS ALL ABOUT BRICS AND ROLE OF INDIA IN BRICS.

1. BRICS...
Sushil
MA/MSc HS&AT
ssushil475@gmail.com

2. What are the BRICS?
BRICS (Brazil, Russia, India, China, South Africa). The five
leading emerging powers, straddling the continents of Asia,
Africa and Latin America.
Originally the first four were grouped as "BRIC" (or "the
BRICs"), before the controversial addition of South Africa in
2010.

3. Features of this Group -
1) Represents 3 Billion People. (40% of World
Population)
2) Accounts for $20 Trillion of GDP which is growing
at 28% Growth Rate.
3) First Summit in 2009, in the midst of Global
Recession.
4) No European/US as a member.
5) Idea to form this group was conceived by Goldman
Sachs.

4. The BRICS countries have made tremendous
contributions to the world economy by increasing
employment, cutting poverty, pouring in capital,
exporting and importing,among others.

5. 2001, Jim O’Neill, then Chief Economist of
Goldman Sachs, coined the acronym for Brazil,
Russia, India and China as the largest emerging
markets economies. He expected them to grow
faster than the developed countries and to play
an increasingly important role in the world.

6. Why does the world need the BRICS?
Jim O’Neill’s point has been that the world is changing. The leading
role of the Group of Seven (G7) (Canada, France, Germany, Italy, Japan, the United
Kingdom, and the United States.) and, more broadly, of the Organisation for
Economic Cooperation and Development (OECD) is no longer
undisputed. Most multi-lateral institutions were designed in the era
when the West dominated the world. This imbalance has been
especially clear during the recent global financial crisis when the
need for participation by non-G7 countries became evident.

7. Do they have enough in common to get things done?
BRICS countries are very different — both in terms of their resources and
in terms of their values and goals. The only thing they all have in common
is, well, membership of BRICS.
Brazil and India are democratic, China and Russia are not. Brazil and
Russia export hydrocarbons, China and India are net importers. China
and Russia are permanent members of the UN Security Council – the
others are not. Structure of financial systems, levels of income,
education, inequality, health challenges also differ substantially within
BRICS.

8. What could they do?
BRICS now have a clear leader than can address the issue of internal
differences in goals and resources. BRICS is quickly becoming a China-led club.
Unlike 15 years ago, China’s nominal GDP is now larger than that of the other
club members combined. The same it’s true with net international financial
position, outward Foreign Direct Investment and development aid.
China’s leadership has finally turned the long-debated plan for a “BRICS Bank”
into a reality. The BRICS have founded the New Development Bank (NDB), which
will become a major regional development bank – the first one without OECD-
countries’ membership (unless of course Greece joins.)

9. INDIA in BRICS
At the BRICS leaders meeting in St Petersburg in September 2013,
China committed $41 billion towards the pool; Brazil, India and Russia
$18 billion each; and South Africa $5 billion.
Looking at India’s own geopolitical and economic interests, the
country has made some significant strides over the past few years
with countries like Japan, Vietnam and Bangladesh.
Japan has committed to making heavy investments in India’s
infrastructure sector, including the Ahmedabad-Mumbai bullet train
and highways in North Eastern India.

10. Given its current interests, India can find greater opportunity
by strengthening its relationship with Japan, the Asian
Development Bank, and the ASEAN. Closer ties with core
regional organizations in South Asia, Latin America, and
Africa also present favorable economic opportunities for
India while avoiding the shortcomings presented by
membership in the BRICS.

11. Indian membership in the BRICS has no direct risk, but it certainly should not be
among India’s top priorities. There are numerous relationships and organization
memberships with greater potential to bring economic and strategic benefit to
India.
India-China strategic ties. Even though India and China have issues regarding
borders, Tibet, South China Sea, Dalai Lama etc., it still supports each other in
strategic economic relations. A sustained and steady growth will help in stability
of the world.

12. INDIA have made tremendous contributions to the world economy by increasing
employment, cutting poverty, pouring in capital, exporting and importing,among
others.