In will sustain the growth than it will

In contrast, India has chosen different
path; Instead of focusing on manufacturing, it focused on service sector. As on
2012, It is the seventh-largest services sector by nominal GDP, and third
largest when purchasing power is taken into account. (www.wikipedia.com, n.d.)

China is continuously
rising in manufacturing sector. In 1990, China produced nearly 3% of the world’s manufacturing output in
terms of value; by 2015, it produced roughly 25%. (Bremmer, 2017)

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            2.2 RISE OF CHINA AND INIDA

 

 

As on 2017, world GDP
was 75.84 $ trillion with GDP growth rate of 2.3%. (downloads,
GDP (Excel), n.d.).
As per the data from the world bank growth rate of south Africa, Russia, and
Brazil will remain near to the estimated growth rate of world GDP. Therefore,
with current driving force from China and India, World is likely to grow from the
current level in next few years.

 

Two major economy in
the world china and India, which are vital pillars of BRICS growing with
average GDP growth rate of 6.8% and 7% respectively. Now, China has become the
second largest economy in the world by GDP after the US. It is estimated that,
if China will sustain the growth than it will overtake US within the next few
years. India is also growing at faster rate, recently in 2016-17 two major
reformations (i.e Demonetization, GST) in financial sector happened in India. These
reforms has affected India’s economic momentum. However, these reforms will
help India for the long-term growth and as per the World Bank forecast; India
will grow with average growth rate of 7.8% in next 5 to 6 years.

 

2.1  
GDP OF BRICS AND THE WORLD

 

2. 
GROWTH OF BRICS

 

In the era of
globalization, which was started after the economic slowdown, BRICS can be
divided into two groups – (1)  those that
took advantage of globalization to integrate themselves into global supply
chains (primarily India and China) and (2) those that took advantage of
globalization to sell their huge natural resources ( primarily south Africa,
Brazil and Russia ). (Bremmer, 2017)

 

Financial crisis has affected
growth of BRICS to some extent, but after the economic slowdown BRICS has been
rising consistently and it has created new demand. Especially in China and
India, significant growth has been seen and both have sustained the growth,
which has opened a door of new opportunities. Higher growth in these economies
could offset the impact of increasing populations and slower growth in today’s
developed countries.

1.2  
BRICS AFTER FINANCIAL CRISIS 2008-2009

 

As of 2016, the five BRICS countries represent over 3.11 billion people, or
about 41.8% of the world population (BRICS
by the numbers: BRICS population in 2016, 2017).
The five nations have a combined nominal GDP of US$16.6 trillion,
equivalent to approximately 22% of the gross world product, combined GDP (PPP)
of around US$37 trillion (www.wikipedia.com, n.d.).

 

BRICS is an association of five major
emerging national economies: Brazil, Russia, India, China and South Africa founded
in June, 2006. Originally the first four were grouped as “BRIC” (or
“the BRICs”), before the induction of South Africa in 2010. (www.wikipedia.com, n.d.)

1.1  
INTRODUCTION

 

1. 
OVERVIEW

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INDEX

 

31/01/2018

Date:

Würzburg

 

 

 

Nirav kanani

Submitted By:

 

 

 

Applied Science University of Würzburg – schweinfurt

Master of Business Administration

Faculty of International Economics

Prof. De Meuter

Submitted To:

 

 

 

 

BRICS AS
A MAJOR DRIVER OF GLOBAL ECONOMIC GROWTH IN 21ST CENTURY

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