Bric Countries India Opportunities And Challenges Economics Essay

Bric Countries India Opportunities And Challenges Economics Essay India has now become the tenth largest economy in the world however it needs to engage more dynamically with the other emerging economies to move up the ladder in realising her dream to become one of the leading economic powers in the world. The world is looking at India due to her impressive economic growth. India being the fourth largest economy in terms of purchasing power parity attracts large FDI in different sectors. All these coupled with economic reforms undertaken in 1991 by Narsinhma Rao government, has made India the second fastest growing economy in the world  . Thus to become economic power India needs to accelerate its economic reforms and take further steps to overcome institutional and infrastructural bottlenecks. 35. There has been increase in the share of industries over the years however the revival of manufacturing sector is the reason for rapid growth in GDP. India has become one of the favourite destinations for IT, pharmaceuticals, biotechnology, automobile, consumer goods etc. As per the recent reports   [ 14 ]   published, India has pulled ahead of China to lead the Forbes list of best countries for new jobs. However the potential to engage with other BRIC countries to fuel her economic growth have not yet fully exploited. There is a requirement for India to move beyond cosmetic ties & forge strong cooperation in fields of trade, IT sector, energy, science and technology and defense and space technology sector to enable mutual benefit of all countries in the group and fuel her economic growth. 36. As per the Goldman Sachs report   [ 15 ]   India will be the third largest economy in the world and by 2030, when it will outperform Japanese economy. To realise this dream, India needs to improve its rural infrastructure such as electricity, roads, irrigation and transport to generate employment and should also at the same time invest heavily in social infrastructure. The de-regulation of economy, simplification of procedures and r elaxation of entry barriers for business activities is must for further growth in FDI. The urgent need to improve infrastructure in rural areas for its development so that it not only participates in the growth of the country but also adds to it.   [ 16 ]    Brazil 37. Brazil is the largest economy in Latin America and the eighth largest in the world, based on nominal GDP and ninth largest by purchasing power parity. Brazil is one of the fastest growing economies in the world with an average growth rate of 5 %. As per Goldman Sachs report Brazil will become one of the five largest economies in the world in the times to come, thus becoming one of the most sought after industrial destination. Brazil is member of various economic organizations. At present its 60 % of exports consist mostly of manufactured or semi manufactured goods. Its main trade partners as per recent reports are Latin America (25.9 %), EU (23.4 %), Asia (18.9 %), the United States (14.0 %), and others (17.8 %). Brazil has a broad base in the sophisticated technological sector that ranges from automobile, petrochemicals, fertilizers, submarines, aircrafts, space research and also a pioneer in many fields, including deep water oil research, ethanol production and blending.   [ 17 ]   Thus it offers great opportunities for India to get into economic and trade ties to exploit potential of Brazil and thus further increasing the mutual trade which has not yet reached the desired level.   [ 18 ]