Building BRICS towards a stronger global economy

In the past few decades, some large economies such as Brazil, Russia, India, China and South Africa (BRICS) have acquired a crucial role in the world economy as producers of goods and services, receivers of capital, and as potential consumer markets. The BRICS countries have some of the world’s fastest growing economies and are drivers of the global recovery process. They are playing a formidable role in shaping macroeconomic policy after the recent financial crisis, even at the G-20 forum level.

Brazil, Russia, India, China and South Africa share the common objective of boosting their economies by bringing in foreign capital and aligning their interests and values. At the fourth BRICS summit, held in New Delhi in March 2012, they discussed the global economic condition, reform of financial and regulatory institutions and establishing a BRICS Development Bank.

The BRICS nations account for 45% of the world’s population, 25% of global GDP and 50% of recent global growth. Therefore when global economic issues directly affect them, the rest of the world feels the impact.

Shardul Thacker is a partner at Mulla & Mulla & Craigie Blunt & Caroe in Mumbai.