Deccan Education Society’s
BRIHAN MAHARASHTRA
COLLEGE OF COMMERCE ( AUTONOMOUS)
Topic – Trade Bloc BRICS
UNDER THE GUIDANCE OF- Sonal Apte Ma’am
Subject- Economic Systems & Foreign Trade
Group Member’s-
• Abhishek Gaikwad- 11 • Shambhuraj Mohite- 21
• Sumit Khopade- 16 • Rutwij Nerpagar- 22
• Nishant Mahale- 17 • Sarthak Sakhre- 27
BRICS
• Introduction
“BRICS" is the acronym denoting the emerging national economies of
Brazil, Russia, India, China and South Africa.
The BRICS system aims to promote peace, security, development, and
cooperation.
The term was originally coined in 2001.
In July 2006, the heads of state from Brazil, Russia, India and China got tog
ether for the first time in St. Petersburg during a G8 Outreach Summit.
BRIC was established in 16th June 2009.
South Africa officially joined the BRIC (Brazil, Russia, India, and China)
group of nations in September 2010. Due to this, the group’s name was
changed to BRICS (Brazil, Russia, India, China, and South Africa).
Objective of BRICS
This group was formed because developing and newly
industrialized countries will come together and dominate Western
economy. Since then there countries came together and changed
the landscape of world.
Agreements between groups of countries within geographical
regions to lower and eventually remove tariff and non-tariff
obstacles to the free flow of goods, services, and production
inputs between each other.
To compete with American dominance by serving as a rival to the
World Bank and the IMF.
To offer self-owned, self-managed organisations to carry out
economic and development initiatives in its member countries.
BRICS have
50% of the worlds population.
25% of the worlds land mass.
24% of worlds GDP.
Own Bank named as NDB (New Development
Bank)
BRICS can compete with USA if they work
with concept of “Oneness”
New Development
Bank’s (NBW) Logo
NDB headquarters
Shanghai, China
NEW DEVELOPMENT BANK (NDB)
The Bank Headquarters is in Shanghai, China.
It was formed on 15th July 2014 by BRICS.
Each country has equal number of distribution of shares
between the shareholders of NDB. And also equal power of
voting wright is given every member.
This bank will provide financial support for both public and
private projects by way of loans, guarantees, equity
investments.
Technical help is given to initiatives that the bank will
sponsor and other financial institutions.
Target sectors for BRICS trade
Manufacturing service and agriculture.
Green economy and tourism.
Construction and water provision.
Energy, infrastructure, healthcare and mining benification.
Finance and Banking
Trade and supply chain.
Development of small and medium enterprise.
Factors affecting growth
The dominance of the Chinese economy.
There are no mutual economic interests among the BRICS
nations.
Members are too similar in several important areas.
The BRICS nations compete to be successful in external mar
kets.
Diversity of cultures and tradition.
Achievements
Expanding trade: BRICs share of the world exports rose significantly
from the years of 1996 to 2008, from 9% to 17%.
Establishment of New Development Bank: Rival to IMF and World
Bank.
China and India will become the world's dominant suppliers of
manufactured goods and services.
Maintaining economic growth that benefits India’s citizens in terms of
job creation, GDP growth, and poverty alleviation are in the country’s
national interest
Accounting for 23 percent of the global economy, 18 percent of trade in
goods and 25 percent of foreign investment, BRICS countries have
formed an important force that cannot be ignored in the world
economy.
Advantages
Expansion of consumer markets and the rise of multinational
companies
India should continue to experience economic growth
Cultural exchanges
Abundant natural resources
BRICS provides India with a platform to advance its anti-
terrorism initiatives.
Disadvantages
Diverse culutre
Lack in mutual economic interest
Each member has different point of view
Corruption
Environmental degradation
Conclusion
Equity investors are still drawn to the BRICS market due to its
trong qualities.
BRICS refers to a group of the world's leading emerging
economies, including Brazil, Russia, India, China and South
Africa. Over the past decade, BRICS cooperation has grown to
an annual calendar of over 100 sectoral meetings, now the
largest in the world.
BRICS can also have more influence in other multilateral
forums such as WTO, World Bank, etc.
We can count a strong economic growth, favourable
demographics, rich natural resources, and strong finances.
