BRICS is an international organization formed by Brazil, Russia, India, China, and South Africa to promote economic development, remove trade barriers, and establish a development bank to challenge Western financial institutions. The BRICS nations represent a significant portion of the world's population and GDP and aim to use their collective economic strength to enhance global trade and investment, focusing on infrastructure and resource management. Key initiatives include lending in local currencies and supporting smaller developing economies, while facing challenges like geopolitical disputes and competition with established institutions like the IMF and World Bank.

1. B
R
I
C
S
GROUP NO : 9
PRITI THAKUR 113
KRUTIKA NIKAM 153
SAYLI PATIL 156

2. LEADERS

3. What is BRICS?
 BRICS stand for Brazil, Russia, India, China & South Africa.
 Came into existence in the year 2001 as BRICNATIONS.
 BRICS is international political organization of leading emerging
economies its Five members are all developing industrialized
countries.
 Biggest and fastest growing emerging economies
 Term BRIC was first prominently used in a
Goldman Sachs report from 2003.

4.  Officially admitted as a BRIC nation on December 24, 2010
 Why South Africa?

5. OBJECTIVES To achieve regional
development
To remove trade barriers.
Economic
development.
Optimum use of resources.
Building relationship.

6. Focus of BRICS forum
 To establish a development bank to balance the influence of the
World Bank and IMF, as well as creating a joint foreign exchange
reserve.
 Business
 Competitiveness
 Governance & Leadership
 Science & Technology
 Poverty
 Private Sector & Prevention of Corruption
 Investment Landscape
 Innovation in building Infrastructure
 Trade
 Healthcare

7. KEY ADVANTAGES
BRAZIL RUSSIA INDIA CHINA SOUTH
AFRICA
One of the
fastest growing
economies in the
last century
Russia has
capability in
high-technology
sectors
1.15 billion
people
Broad expansion
of educational
achievement
The South
African
economy is
now the 23rd
largest in the
world
Brazilian
economy
becoming less
dependent on
exports
Accounts for
around 20% of
the world’s oil
and gas
reserves
2nd largest labor
force
Rapid economic
growth
Inflation is now
below 5% and
falling.
Extremely rich in
resources such
as coffee,
sugarcane, iron ,
and crude oil etc
Fall in the
number of
people living
below the
poverty line
Approximately
2.5 million
college
graduates per
year
Third largest
country in land
size
25% of goods
produced in
South Africa
are for
export

8. PROBLEMATIC FACTORS

9. IMPORTANT INDICATORS
• GINI INDICATOR

10. EASE OF DOING BUSINESS

11. EXPORT IMPORT COMPARISION IN
BRICS

12. 12
26 % of Earth's land area
42 % of world's population
46% of world’s work force
19 % of world´s nominal GDP

13. BRICS BANK
Structure:
 New Development Bank will have an initial subscribed capital of $50
billion which will be raised to $100 billion.
 The five members will have an equal share
for each in the bank, so no one member
dominates the institution.
 Headquarters – Shanghai
 Bank will have African Regional Center
in South Africa
 India will assume the first presidency of the bank.
Chairman of Board of governance will be Russian.It will have
$41 billion from China, $5 billion from
 South Africa and $ 18 billion from remaining nations.

14. Needs for the Bank:
 Global financial institutions like IMF and world bank are dominated
by U.S and western countries
 IMF and world bank follows different voting power based on quota
system. Though China is second largest economy after U.S it has
fewer voting rights.
 The financial institution created by BRICS will reduce the importance
of US dollar as a global currency and eventually it will increase
importance of Yuan
 IMF cash assistance program is conditional. If a country's foreign
policy clashes with US then it will be difficult to obtain a loan.
 It will provide resources for infrastructure development of developing
countries.

15. BRAZIL
• SIZE 8.5 M SQ. KMS
• POPULATION 190 MILLION
• POVERTY (% OF POPULATION)
20010 46.7%
2012 30.3%
CHANGE 16.4%
AGRICULTURAL AND MINING POWERHOUSE.
EXPECTED TO BECOME MAJOR WORLD PLAYER IN WORLD
ENERGY MARKET, HAVING FOUND HUGE DEEP-SEA OIL RESERVES.
POVERTY (% OF POPULATION)

16. RUSSIA
• POVERTY (% OF POPULATION)
• SIZE 17M SQ. KMS
• POPULATION 143 MILLION
2010 27.5%
2012 13.0%
CHANGE 14.5%
POVERTY (% OF POPULATION)
WORLD’S SECOND LARGEST OIL EXPORTER, BUT FALL IN OIL
PRICES COULD TRIGGER WORST RECESSION IN AT LEAST A
DECADE, CONTRACTING GDP BY AN EXPECTED 6% .

17. INDIA
• SIZE 3.3M SQ. KMS
• POPULATION 1100 MILLION
• POVERTY (% OF POPULATION)
2010 27.5%
2012 21.8.0%
CHANGE 5.7%
POVERTY (% OF POPULATION)
VAST DOMESTIC MARKET PUTS IT ON THE TRACK FOR GROWTH
THIS YEAR. FACES POTENTIAL TROUBLE FROM DOMESTIC MILITANT
GROUPS AND A LONG RUNNING BORDER DISPUTE WITH PAKISTAN.

18. CHINA
• SIZE 9.6M SQ. KMS
• POPULATION 1300 MILLION
• POVERTY (% OF POPULATION)
2010 16%
2012 4%
CHANGE 12%
2008, 1, 4
POVERTY (% OF POPULATION)
A GLOBAL MANUFACTURING HUB, HELD $727 BILLION IN U.S.
TREASURIES AT YEAR-END 2012. ESTIMATED TWO-THIRDS OF
ITS ROUGHLY $2 TRILLION IN FOREIGN RESERVES PARKED IN
DOLLAR ASSETS.

19. BRICS v/s World(2015)
“Potential of BRIC is such that they could become among the four most dominant economies
by the year 2050” ~ Goldman Sachs in 2001

20. MIST V/S BRICS
• Goldman Sachs economist Jim O’Neill in 2005
• Mexico, Indonesia, South Korea and Turkey
• Economy doubled in last decade.
• 7% of the world population
• 3% of global land area
• 1% of global GDP each
• Fast-growing markets for consumer goods and services

21. MIST vs. BRICS- MARKET
• Mexico –(MEXBOL)
11 %growth
• Indonesia’s -JCI gained
7.4%
• South Korea’s-KOSPI
3.3% growth.
• Turkey’s-ISE(XU100)-
28
• India-(BSE) 13%
growth
• Russia -2.6% gain
• China-SHCOMP 2 %
drop
• Brazil –IBOV and
South Africa -2.8%
growth

22. GDP

23. ECONOMIES AND GOVERNANCE
BRICS MIST
Countries Rank Countries Rank
Brazil 84 Mexico 65
Russia 112 Indonesia 58
India 100 South Korea 34
China 56 Turkey 62
South Africa 63

24. LOCAL CURRENCY AND INFLATION

25. BRICS SUMMIT
 The BRIC countries met for their first official summit on 16 June
2009, in Yekaterinburg, Russia.
 Discussed the current global financial crisis, global development,
and further strengthening of the BRICS group.
 Issued a joint statement on global food security, calling for "action
by all governments and the relevant international agencies“

26. 2nd BRICS Summit held on April 16,2010 Brazil
3rd BRICS Summit held on April 14, 2011 china
4th BRICS Summit held on March 30,2012 India
5th BRICS Summit held on March 28,2013 South Africa
6th BRICS Summit held on July 7 ,2014 Brazil
7th BRICS Summit held on July 10, 2015 Russia
8th BRICS Summit to held on October 17,2016 India

27. AGENDA OF 7th SUMMIT
The summit coincided with the entry into force of constituting
agreements of the New Development Bank and the BRICS Contingent
Reserve Arrangement and during the summit inaugural meetings of the
NDB were held, and it was announced it would be lending in local
currency; and open up membership to non-BRICS countries in the
coming months

28. BRICS INDIA - 8th Summit in OCT 2016,
GOA
 Invited - Bay of Bengal Initiative for Multi-Sectoral Technical
and Economic cooperation (BIMSTEC) is an international
organization involving a group of countries in South
Asia and South East Asia.
 Bangladesh, India, Myanmar, Srilanka, Thailand ,Bhutan,
Nepal

29. BRICS summit focus sectors
• Finance Areas (Investments)
• Social & Cultural exchange
• Trade Agreements in areas of :
Infrastructure
Agriculture
Environment

30. Advantages
• Growth agenda of BRICS economies as a whole
• Growth agenda of other smaller regional economies
• BRICS development is Important driver for global economy
• Improvement in trade relations when “good going” and helps regional
outreach
• Sports & Cultural exchange
• Helping smaller nations for productive use of resources
• To Connect & Share technology and share resources, conduct free
trade and share innovation from BRICS to other regions
globally…(Arun Jaitley in BRICS Summit 2016)
Dis -Advantage
Propaganda news on BRICS to compete with IMF and World Bank
Individual International disputes and arbitration being taken up as part of
BRICS agenda

31. BRICS could be larger economies than the united states
and the developed economies of Europe within 40 years
.
• China and India will become
world’s dominant suppliers
• Brazil and Russia will
become dominant suppliers

32. BRICS Moves Up in USD-Denominated GDP Ranking
BRICS – Growing Size Of economy
1
BRICS Nation Economy (GDP) Ranking improved
4 BRICS nation to be
amongst top five

33. BRICS Moves Up in USD-Denominated GDP Ranking
The Growing Dominance of BRICS
BRICS – Growing Size Of economy
1
2
BRICS Nation Economy (GDP -PPP) growing dominance over world
Around 40%
of GDP
(PPP)
contribution
will be from
BRICS

34. BRICS Moves Up in USD-Denominated GDP Ranking
BRICS – Growing Size Of economy
The Growing Dominance of BRICS
1
2
BRICs have become a key player in Global Trade Flows
3
Around
4500bn USD
of Global trade
by BRICS
which is about
15% of total .

35. CONCLUSION
We believe the BRICS markets retain strong characteristics
that attract equity investors.
We can count here a strong economic growth, favorable
demographics, rich natural resources, and strong finances.
The worries and uncertainty will likely continue to create
some angst in the global market,
But
we firmly believe that these markets should do well in the
long-term