The five BRICS countries make up 43% of the world’s population and hold a combined GDP of over $18 trillion. With the fourth BRICS meeting taking place in New Delhi last week, this post highlights the main talking points and conclusions from this meeting and how trade between India and Brazil is set to increase.
The main agenda for the summit was the creation of a new development bank:
- The BRICS Bank is to function somewhat like the World Bank - the money will be spent on infrastructure and sustainable development projects in the BRICS, other emerging economies and developing countries.
- The creation of the bank will help to increase projected trade growth within the BRICS from last year’s $230 billion to $500 billion by 2015.
- The BRICS will use local currencies whilst trading, thus creating a new trade system that uses the currencies of the five nations only and, consequently, is not dependent on the US Dollar.
- The Bank will help the BRICS to increase their political influence in regions such as Africa and other parts of the world. The following link takes you to an interesting article highlighting the influence of BRIC power.
“Intra-BRIC trade”, or trade amongst the BRICS members, has grown at the rate of 30% per annum since 1999 and now accounts for over 8% of global trade. During the last 10 years, intra-BRIC trade has increased nine fold, compared to global trade which only doubled over the same period.
For an insight into Intra-BRIC trade between Brazil and India, please click on this link