A study of BRIC group nation and India's role.

1. Presented by – Mayank
Piyush
Ankit
Akansha
Subhra
Sagar

2. Content
Meaning of BRIC
World expectation
Crack in BRIC
Present of India
First BRIC to fall
Causes for down fall of India
Conclusion

3. What did BRIC economy actually means ?
In economics, BRIC is a grouping acronym that refers to
the countries of Brazil, Russia, India and China, which are all deemed to be at a
similar stage of newly advanced economic development. It is typically
rendered as "the BRICs" or "the BRIC countries" or "the BRIC economies" or
alternatively as the "Big Four".
According to a paper published in 2005, Mexico and South Korea were the
only other countries comparable to the BRICs, but their economies were
excluded initially because they were considered already more developed
world has argued that, since the four BRIC countries are developing rapidly, by
2050 their combined economies could eclipse the combined economies of the
current richest countries of the world. These four countries, combined,
currently account for more than a quarter of the world's land area and more
than 40% of the world's population

4. World expectation from BRIC countries till
2050
The BRIC thesis recognizes that Brazil, Russia, India and
China have changed their political systems to embrace
global capitalism. Goldman Sachs predicts that China and
India, respectively, will become the dominant global
suppliers of manufactured goods and services, while Brazil
and Russia will become similarly dominant as suppliers of
raw materials. Of the four countries, Brazil remains the
only polity that has the capacity to continue all elements,
meaning manufacturing, services, and resource supplying
simultaneously. Cooperation is thus hypothesized to be a
logical next step among the BRICs because Brazil and Russia
together form the logical commodity suppliers

6. • Per Capita Income is 35414
• India Has a debt of 1200 Crores
• The GDP Of INDIA is Between 6-7%
• In India Savings Rate is 33.7%
• In India 22% of People are below Poverty Line
• Food Availability per person is 444 Grams
• The Main Source of Income Of India is Tax

7. Will India Be The First BRIC Fallen Angel?
Slowing GDP growth and political roadblocks to economic
policymaking could put India at risk of losing its investment-
grade rating. Standard & Poor's Ratings Services revised its
outlook on India's 'BBB-' long-term sovereign credit rating--
which is one notch above speculative-grade--to negative from
stable in April of this year because of lower GDP growth
prospects and the risk of erosion in its external liquidity and
fiscal flexibility. The negative outlook also reflects the risk that
Indian authorities may be unable to react to economic shocks
quickly and decisively enough to maintain its current
creditworthiness. Economic growth has slowed in India in recent
months, as it has in much of the world, and the country has
suffered mild erosion in its economic profile, with widening
trade and current-account deficits. Its central government's fiscal
deficit exceeded official projections for the year ended March
31, 2012, reaching 5.9% of GDP. In addition, inflation remains
stubbornly high despite the Reserve Bank of India's tightening
policies in 2011

8. Cause for fall of India
Business Confidence Has Taken A Hit
Local business confidence in India has deteriorated for various
reasons, including perceptions of "policy paralysis" within the
central government. India was able to boost public and private
investment in infrastructure in recent years, sustaining high GDP
growth of around 8%-9% during the three years leading up to
the recent global slowdown (in 2008). However, a perceived
slowdown in government decision-making, failure to implement
announced reforms, and growing bottlenecks in key sectors
(including lack of reforms to archaic land acquisition laws that
hinder investment) has undermined business confidence. And
infrastructure problems, combined with growing shortfalls in the
production of coal and other fuels, have dampened investment
prospects. Recent setbacks in economic policy have also hurt
investor sentiment. Strong opposition from within the Congress
party-led ruling coalition, as well as from opposition parties,
recently forced the government to reverse its decision

9. Economic Policy At A Turning Point?
These developments raise larger questions: Are the recent years of rapid
economic growth over? India enjoyed GDP growth averaging 8.7% during
2004-2008 and 7.8% during 2009-2011. Will India return to a lower level of
trend growth over the next three to five years, or can it recover to levels
close to its impressive growth rates of recent years Moreover, is there a
risk that India will go backwards in its economic policies and undo some of
the progress it had made to liberalize its economy since the early 1990s?
The government could react to lower GDP growth and greater vulnerability
to economic shocks by tightening fiscal policy and liberalizing the economy.
Or, it could potentially roll back some of the policies that had opened the
economy and created a
economic
greater role for market forces and private investment. Indian officials have
consistently stated that while economic reform may be slow because of
the political realities of a largely poor, diverse, and democratic country, it
could only go forward. But is there a risk that

10. Leadership At Center is Be The Biggest
Hurdle
The crux of the current political problem for economic liberalization is, in our view,
the nature of leadership within the central government, not obstreperous allies or an
unhelpful opposition. The Congress party is divided on economic policies. There is
substantial opposition within the party to any serious liberalization of the economy.
Moreover, paramount political power rests with the leader of the Congress party,
Sonia Gandhi, who holds no Cabinet position, while the government is led by an
unelected prime minister, Manmohan Singh, who lacks a political base of his own.
Manmohan Singh did not run for office in 2009 and, according to many political
analysts, appears to have less influence within the Cabinet than previous prime
ministers. In fact, the Cabinet is appointed largely by Sonia Gandhi and leaders of the
allied parties, who choose their own candidates for the Cabinet posts allocated to
them within the coalition. Hence, the prime minister often appears to have limited
ability

11. conclusion