PRESENTED BY:-

SHUBHAM PATIL

New Development Bank must

promote joint BRICS plans: Ficci

Welcoming Prime Minister Narendra Modi’s 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 BRICS

BRICS 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

From ‘BRICs’ to ‘BRICS’

The 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".

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BRICS: Characteristics

Vast 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 BRICS

To achieve regional development

To remove trade barriers

Economic development

Optimum use of resources

Building relationship

ABOUT THE BRICS

NATION

BRAZIL

KEY ADVANTAGES : One of the fastest growing economies in the last centuries Brazilian economy becoming less dependent on imports Extremely 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

RUSSIA

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

CHALLENGES FOR FUTURE Labour shortages and poorly developed infrastructure Corruption

INDIA

KEY ADVANTAGES 1.15 billion people 2nd largest labour force Approximately 2.5 million college graduates per year

CHALLENGES FOR THE FUTURE Improving basic educational achievement Improving infrastructure and electrical capacity Expanding technology industry

CHINA

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

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

SOUTH AFRICA

KEY ADVANTAGE The South African economy is now the 23rd largest in

the world Inflation 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 Summit

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EFFECTS ON TRADE RELATIONS

To support growth on the continent, notably during the recent financial crisis

South Africa’s financial market development and sophistication

The World Economic Forum’s 2011/12 Global Competitiveness Index displayed a high level of confidence in South Africa’s 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 TRADE

Manufacturing, services and agriculture

Energy, infrastructure, mining beneficiation and healthcare

Construction and water provision

The green economy and tourism

BRICS

ADVANTAGES

India is also expected to grow faster than China after 2020

India- Characterized by a low share of consumption and high savings.

Rising incomes in the BRICs nations will create a new middle consumer class

Featured as- “Roadmap For Contribution” Important drivers for growth in the global economy. Expansion of their consumer markets and the rise of

multinational companies the establishment of a “positive multipolarity" in

international affairs

DISADVANTAGES

The 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 years Chances of Intra Trade Disputes are high Difficulties of articulating their conflicting interests

in some sort of common vision became more evident. Different viewpoints and influence in the

international arena.

FUTURE PROSPECT

BRICS will remain a useful mirror Brazilian comparisons with China and India in

regards to economic factors overcoming current obstacles to higher

sustainable growth drive productivity and competitiveness in an

increasingly integrated world economy a 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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AANN

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