PRESENTATION

ON

Presented by
 Introduction

A grouping acronym referring to the countries of Brazil, Russia, India,

 A grouping acronym referring to the countries of Brazil, Russia, India,
and China.
 Term was first prominently used in a Goldman Sachs report from
2003.
 These countries aren’t a political alliance - but they have the
potential to form a powerful economic bloc
 These four countries are among the biggest and fastest growing
emerging markets
 Already BRIC accounts for:
o 40 per cent of the world's population,
o 25.9 per cent of its total geographic area,
o 40 per cent of global GDP
 Dreaming with BRIC : The path
to 2050

 China’s economy will surpass Germany in the next few years ,

Japan by 2015, and the US by 2041.
 India’s growth rate will be the highest-not China’s and it will
overtake Japan by 2032.
 BRIC currency could appreciate by 300% over the next 50
years.
 INDIA
A Wise Elephant

Trends
 Number of people in absolute poverty has declined sharply
 Exports have boomed
 Foreign exchange reserves are ample for the first time in history
 Newfound economic dynamism has shifted the balance of leaders’ priorities from
geopolitical goals to mutual economic interests.
Russia-A smooth political transition
An “easy case” for globalization
 Undue emphasis on economics over politics
 Disregard of cultural values
 Russia can still benefit from a globalized world without undertaking painful reform.
 THE ‘B’ IN BRIC:
Unlocking Brazil’s Growth POTENTIAL

The uneasy emergence of an economic leader in Latin America

 One of the fastest growing economies in the last century
 But over-reliance on agricultural commodity exports resulted in a
development marked by boom and bust
 Focus on equitable development has resulted in significant poverty
reduction
 Brazilian economy becoming less dependent on exports
 A global leader in renewable fuels.
China- Unleashing The ‘Caged Tiger’
 China’s successes are associated with liberalization and globalization.
 China focused not only on opening economy, but also on institutionalizing
globalization
 Assimilation of best practices from across the globe
 Emerging Markets-Opportunities of
BRIC

• High growth rates

• Increased foreign direct investments
• Huge investments in infrastructure
• Huge middle class boosting demand
• Abundant supply of educated cheap workforce
• High potential for outsourcing work specially India
• Domestic/global mergers/acquisitions
• Technology up gradations
• Abundant agri/mineral resources
• Commodity markets expanding fast
 Emerging market-challenges
of BRIC

• Volatile markets
• Unstable macro-economic policies
• Natural disasters
• Setback in rain dependent agri sector bring down
GDP growth rates
• Currency appreciation for export led economies
• Weak infrastructure
• Slowdown in FDI/increasing interest rates in USA
• Steep increase in energy cost
BRIC SUMMIT
• BRIC countries met for their first summit on 16
June 2009, in Yekaterinburg, Russia, discussed the
current global financial crisis, global development.
• Attacked the rule of dollar as the primary
international currency and suggested new global
reserves currency, i.e. diversified, stable and
predictable
• The 2010 BRIC summit took place in Brasilia,
Brazil on April 16, 2010. This was the second BRIC
summit.
Importance of BRIC

The importance of BRIC in the world economy has

increased manifold since the acronym was first
coined nearly seven years ago. Few could have
imagined then how the American economy would
collapse and bring down with it much of the rest
of the world. It is worth revisiting the original
formulations on the significance of these four
major countries that were made by
representatives of a major American investment
bank.
 BRIC Imports
BRAZIL RUSSIA INDIA CHINA

Total imports 187.7 billion 237.3 billion 327 billion 1.307 trillion
(dollar) (dollar) (dollar) (dollar)
Commodities Machinery, Machinery, Crude oil, Electrical and
imports electrical and Vehicles, precious stones, other Machinery,
transport Pharmaceutical Machinery, oil and minerals
equipment, products, plastic, fertilizer, iron and fuels, opticals
chemical semi-finished steel, chemicals. and medical
products, oil, metal products, equipment,
automotive meat, fruits and metal ores,
parts, nuts, optical and plastics, organic
electronics. medical chemicals.
instruments,
iron, steel.*

Imports-partners US, China, Germany, China, China, US, Saudi Japan, Hong
Argentina, Ukraine, Italy, US. Arabia, UAE, Kong, South
Germany, Japan. Australia, Korea, US,
Germany, Taiwan,
Singapore. Germany.
 BRIC Exports
Brazil Russia India China
Total exports 199.7 billion 376.7 billion 201 billion 1.506 trillion
(dollar) (dollar) (dollar) (dollar)

Exports- Transport Petroleum and Petroleum Electrical and

commodities equipment, iron petroleum products, other machinery,
ore, soybeans, products, natural precious stones, data processing
footwear, coffee, gas, metals, machinery, iron equipment,
autos. wood and wood and steel, apparel, textiles,
products, chemicals, iron and steel,
chemicals, vehicles, apparel. optical and
civilian and medical
military equipment.
manufactures.

Exports-partners China, US, Netherlands, UAE, US, China US, Hong Kong,
Argentina, Italy, Germany, Japan, South
Netherlands, China, Turkey, Korea, Germany.
Germany Ukraine.
Economic trends of BRIC
countries
 Sub-prime mortgage prices
 Foreign Investment
 Evolving Economies
 Comparative analysis of BRIC
BRAZIL
countries
RUSSIA
• Higher income, higher
• More nascent
education
entrepreneurs
• More not working
• Less owners of
• More nascent
functioning business
entrepreneurs
• Less think that new
• Less established
business leads to high
entrepreneurs
level of status and
respect
INDIA CHINA
• More females • Less negative business
• More home makers experience
• Lower income, lower • More work part time
level of education • Higher income, higher
• More not working level of education
• More nascent • More nascent
entrepreneurs entrepreneurs
• Less owner of • Less established
functioning business entrpreneurs
 Conclusion
BRIC accounts for 15% of the global economy and
42% of global currency reserves. Between 2000
and 2005 BRIC contributed roughly 28% of global
growth in US dollar terms and 55% In purchasing
power parity terms.
 Title
BRIC
THANK YOU FOR YOUR
KIND ATTENTION…….