(final)bric economies

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What does ´BRICµ mean?³Bric´ is an acronym for the economies of Brazil, Russia, Indiaand China combined.Invented by Jim O¶Neill (an economist at Goldman Sachs).

What is so special about ´BRICµ?³Bric´ accounts for: 40% of the world¶s population. 25% of its total geographic area. 40% of global GDP.

´BRICµ Thesis.China & India ± manufactured goods & services.Russia & Brazil ± raw materials.



´BRICµ SUMMITS

2009

BRIC SUMMIT ± Ekaterinburg, Russia on 16

th

June.

2010 BRIC SUMMIT ± Brasilia, Brazil on 16th April.

2011 BRIC SUMMIT ± Beijing, China on



Dreaming With The ´BRIC·sµ: The Path To

2050

Goldman Sachs published an original report in 2003 named³Dreaming With The BRIC¶s: The Path To 2050.

There are some important points from this report:

China will surpass Germany, Japan and The United States.

India¶s growth rate will rise and overtake Japan.

Currencies will appreciate by 300%.

larger than the Untied States and Europe economies.

2025 wealthier than other economies of the world.



Country Fact Sheet` Population

` GDP size

` Export

` Import

` Public debt

` Revenues

`

Expenses` Inflation



World

Rank Company Industry

Revenue

(billion $)

Profits

(billion $)

Assets

(billion $)

Market

Value

(billion $)

Headquarters

4 PetrobrasOil & Gas

Operations138.80 21.26 313.25 238.80 Rio de Janeiro

20 Vale Mining 46.54 18.12 132.86 184.96 Rio de Janeiro

51 Itaú Unibanco Banking 71.47 8.37 507.84 115.08 São Paulo

64 Ambev Beverage 15.90 4.75 54.92 86.45 São Paulo

235 Itaúsa Conglomerates 66.44 2.33 342.60 36.08 São Paulo

342 CSNSteel &

Cement9.34 1.94 16.88 30.47 Rio de Janeiro

398 Gerdau Iron & Steel 23.40 1.49 27.66 23.18 Porto Alleger

487 Eletrobras Utilities 16.40 1.32 78.45 21.22 Rio de Janeiro

547 UsiminasMining &

Siderurgy7.95 1.02 18.95 19.33

Belo

Horizonte

640 Embraer Aerospace &

Defense 6.14 1.03 15.69 17.56

São Jose dos

Campos, SãoPaulo



Country Fact-sheet

� Population: 1.1 billion

� GDP size: $1.5 trillion (NOMINAL)� Rise in disposable income: 12% (5-yr CAGR)

� Per-capita income : Rs.46492 (approx 1000 $)

� GDP growth rate: 7.8% (1st quarter 2011)

� 10th largest by nominal GDP & 4th largest byPurchasing power parity (PPP)



Country Fact-sheet

� Merger and acquisition activity: $ 24.1 Billion

(Bharti-Zain , Abbot-Piramal Healthcare etc.

� Benchmark Index: SENSEX and S&P CNX Nifty.



` Year Growth (real) (%)

` 2000 5.5

` 2001 6.0

` 2002 4.3

` 2003 4.3

` 2004 8.3

` 2005 6.2

` 2006 8.4` 2007 9.2

` 2008 9.0

` 2009 7.4



Country Fact-sheet *(ALL FIGURES AS OF 2010)

GDP : $5.88 trillion (nominal)

$10.08 trillion (PPP)

GDP growth: 10.46%

GDP per capita:$4,283 (nominal)

$7,518 (PPP)

Public debt:17.5% of GDP (112th; 2010)

R evenues:$1.149 trillion (2010)

Expenses:$1.27 trillion (2010)

Economic Aid(recipient): $1.12 per capita (2008)

Credit rating: AA- (Domestic)AA- (Foreign)AA- (T&C Assessment)(Standard & Poor's)

Foreign reserves:$3.05 trillion (1st; 2011)



PrevClose:

6,547.06

Open: 6,554.02

Day'sRange:

6,513.83 -

6,564.61

52wk

Range:

5,586.93 -

7,466.49

SHANGHAI STOCK EXCHANGE



FACTS CHINA INDIA

GDP around 4909.28 billion around $1.3123 trillion

GDP Growth 9.60% 8.90%

GDP Per Capita $7,518 $1,124

Inflation 5.1% 7.48 %

Labor Force 813.5 million 467 millionUnemployment 4.20 % 9.4 %

Fiscal Deficit 21.5% 5.5%

Forei n Direct Investment$9.7 billion $12.40

Gold Reserves 11% 15%

Forei n xchan eReserves

$2.65 trillion $241 billion

World Prosperity Index 58th Position 88Th Position

Mobile Users 687.71 million 842 million

Internet Users 81 million. 123.16 million



WH Y CHINA HAS AN UPPERHAND

OVER

INDIA

Agriculture

Liberalization of the market

Difference in infrastructure and other aspects of economic growth

China¶s imports & e ports



� High growth rates� Increased foreign direct investments

� Huge investments in infrastructure� Domestic/global mergers/acquisitions� Technology up gradations� Abundant agri/mineral resources� Commodity markets expanding fast



� Volatile markets

� Natural disasters� Setback in rain dependent agri sector � Weak infrastructure� Slowdown in FDI� Steep increase in energy cost



` BRIC countries met for their first summit on16 June 2009, in Yekaterinburg, Russia,discussed the current global financialcrisis,global development.

` Attacked the rule of dollar as the primaryinternational currency and suggested newglobal reserves currency, i.e. diversified,stable and predictable

` The 2 1 BRIC summit took place in

Brasilia, Brazil on April 16, 2010. This was thesecond BRIC summit.



The importance of BRIC in the worldeconomy has increased manifold since theacronym was first coined nearly seven years

ago. Few could have imagined then how the American economy would collapse and bringdown with it much of the rest of the world. It isworth revisiting the original formulations onthe significance of these four major countries

that were made by representatives of a major American investment bank.



PRESENTED BY: AVANI NANDU(30)DIVYA SHETTY(47)

HERSH CHOKSI(5)JASMINE MEHTA(24)JEENAL PARMAR(31)

NEHA MEHTA(26)

SHIVANG UNADKAT(54)

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