Volume: 10, Number: 07, Year: 2019
Role of BRICS in Global Economy
BRICS have gained its economic importance globally as it constitutes over 40% of the world population creating a large domestic demand, and accounts for 56% of the growth of global GNP during 2008- 2017. BRICS constitute an attractive destination for FDI due to immense opportunities in the region such as cheap labour, lower production cost, and large base of customers, natural resources and emerging markets. Studies have pointed out the growth potential of BRICS nations and also opportunities for investors in BRICS nation. Share in global trade and global GNP has increased impressively, and showed positive signs compared to other developed and large economies even during the period of global financial crisis. This led to the increase in importance of BRICS after the financial crisis in United States followed by Europe. If we study the member nations of BRICS individually, we see that India and China has shown impressive and continuous growth in GDP and trade, and it is believed that in near future India and China will become the most dominant suppliers of manufactured goods, whereas Russia and Brazil will become the most dominant suppliers of raw materials. Thus it is experienced that the BRICS have presented a challenge and shift in the centres of global economic powers.
Paper ID: 15283