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PRESENTED BY:- SHUBHAM PATIL

New Development Bank must promote joint BRICS plans: Ficci

Welcoming Prime Minister Narendra Modis thrust on deeper economic cooperation between BRICS (Brazil, Russia, India, China and South Africa) nations, Ficci said the New Development Bank must promote projects in infrastructure, renewable energy and skill development. We are deeply encouraged by the guidance given by our Prime Minister in context of boosting intra-BRICS economic cooperation. The New Development Bank has a lot of expectations attached to it and it must promote joint BRICS projects particularly in areas of infrastructure, renewable energy and skill development. NDB must also support projects in manufacturing sector that foster regional value chains within BRICS. This will give a massive boost to intra-BRICS trade that presently defies potential, Ficci President Jyotsna Suri said. Referring to BRICS New Development Bank, Modi said it should fund projects which have cross-border collaboration among the five member countries.

The BRICS Information Sharing and Exchanging Platform (BRICS Business Portal), anchored by the Fudan University, is an excellent tool that must be used and leveraged by businesses for accessing information on policies and projects across sectors in BRICS countries. Ficci, as the technical secretariat for the BRICS Business Council from India, will enhance awareness about this portal and its usability amongst businesses in India through its nationwide network, Suri said. On the initiative of BRICS trade fair, Suri said it can be a very significant platform to connect businesses, learn about investment opportunities and evaluate cutting edge technologies being pursued across sectors in all BRICS countries. We would be completely supporting this initiative of our Prime Minister and feel that going ahead this could become a critical platform for enhancing intra-BRICS trade and investment flows, she added.

ABOUT BRICSBRICS stands for Brazil, Russia, China, and South Africa.

Came into existence in 2001 as BRICS nation

It is the fastest growing and emerging economics

BRICS is the international political organization of leading emerging economies. Its five members are all developing industrialized countries

The term BRICS was used for the first time in the Goldman Sachs report 2003

5From BRICs to BRICSThe BRIC became a mechanism through which the countries can exchange opinions, seek convergence, identify areas of cooperation and influence the international agenda.

Officially it was admitted as a BRIC nation on 24 December 2010

With the entrance of South Africa, at the 3rd BRICS Summit, in April 2011, the BRIC became BRICS, with capital "S".6

BRICS: CharacteristicsVast Land Area

Developing Economy Globally

Friendly Trade Relations

Challenges Related To Economic And Social Integration

Desire To Make The International Order More Representative

Possibility Of Cooperation In Many Areas

OBJECTIVE OF BRICSTo achieve regional development

To remove trade barriers

Economic development

Optimum use of resources

Building relationship

ABOUT THE BRICS NATION

BRAZILKEY ADVANTAGES :One of the fastest growing economies in the last centuriesBrazilian economy becoming less dependent on importsExtremely rich in resources such as coffee, sugarcane, crude oil and iron etc.Focus on equitable development has resulted in significant poverty reduction.

CHALLENGES FOR THE FUTURE:Overburdened and ineffective judicial system.Industrial output is weak

RUSSIAKEY ADVANTAGES:Russia has capability in high-technology sectors Accounts for around 20% of the worlds oil and gas reserves fall in the number of people living below the poverty line

CHALLENGES FOR FUTURELabour shortages and poorly developed infrastructureCorruption

INDIAKEY ADVANTAGES1.15 billion people2nd largest labour forceApproximately 2.5 million college graduates per year

CHALLENGES FOR THE FUTUREImproving basic educational achievementImproving infrastructure and electrical capacityExpanding technology industry

CHINAKEY ADVANTAGES Broad expansion of educational achievement Rapid economic growth Third largest country in land size

CHALLENGES FOR THE FUTUREsupport to rural areas and less-developed regions Bank of China sees inflation as a bigger risk Need to improve the investment

SOUTH AFRICAKEY ADVANTAGEThe South African economy is now the 23rd largest in the worldInflation is now below 5% and falling. 25% of goods produced in South Africa are for export

CHALLENGES FOR THE FUTURE:The economy is growing but not fast enough Lack of skills, particularly in IT. 48% of the population is living below the poverty line

4th BRICS Summit15

EFFECTS ON TRADE RELATIONSTo support growth on the continent, notably during the recent financial crisis

South Africas financial market development and sophistication

The World Economic Forums 2011/12 Global Competitiveness Index displayed a high level of confidence in South Africas financial market development, ranking the country in fourth place globally on this measure.

Among BRICS members, South African exports to China grew the most, at 46%, while exports to India grew by 20%, to Brazil by 14% and by 7% to Russia.

TARGET SECTORS FOR BRICS TRADEManufacturing, services and agriculture

Energy, infrastructure, mining beneficiation and healthcare

Construction and water provision

The green economy and tourism

BRICS

ADVANTAGESIndia is also expected to grow faster thanChinaafter 2020India- Characterized by a low share of consumption and high savings.Rising incomes in the BRICs nations will create a new middle consumer classFeatured as- Roadmap For ContributionImportant drivers for growth in the global economy.Expansion of their consumer markets and the rise of multinational companiesthe establishment of a positive multipolarity" in international affairs

DISADVANTAGESThe BRICS were seen by Brazilian diplomats and scholars as a useful mechanism to project Brazil internationally in a rapidly changing global landscape.Lost speed and altitude over the past two yearsChances of Intra Trade Disputes are highDifficulties of articulating their conflicting interests in some sort of common vision became more evident.Different viewpoints and influence in the international arena.

FUTURE PROSPECTBRICS will remain a useful mirrorBrazilian comparisons with China and India in regards to economic factorsovercoming current obstacles to higher sustainable growthdrive productivity and competitiveness in an increasingly integrated world economya central role in dealing with global challenges and threats.

South Africa, therefore, needs to bring new policies, invest in its own, and the regional infrastructure, as well as reduce intra-African trade barriers for the country to provide any meaningful contribution to Brics and enhance its competitiveness on the international stage by providing entitlement ,developing capabilities and working on action plan to prove that it deserves its place in BRICS.CONCLUSION

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