SCRUMBLING WORLD ECONOMY SEE HOPE IN BRIC’S

INTRODUCTION

OBJECTIVE

RESEARCH METHODOLOGY

RESEARCH DESIGN DATA COLLECTING PROCESS

ANALYSIS

SWOT ANALYSIS

GRAPHICAL INTERPRETATION

FACTS AND PERFORMANCE OF BRICs

CONCLUSION

LIMITATIONS

INTRODUCTION

WORLD ECONOMY:-

World Economies: Integration among the economies over the world has brought world

economy, particularly in the field of trade, commerce and information. It is common to limit

questions of the world economy exclusively to human economic activity, and the world

economy is typically judged in monetary terms, even in cases in which there is no efficient

market to help valuate certain goods or services, or in cases in which a lack of independent

research or government cooperation makes establishing figures difficult.

The world economy grew 5.2% in 2007 powered by growth in China (11%), India (9%)

and Russia (8%). The global economy faces a real risk of 1970s style stagflation

however, with resource constraints tighter than ever before.

Things could scarcely have looked rosier for the world economy at the start of 2007. The

Emerging Markets, led by the giants of China, India, Russia and Brazil (the BRIC countries)

had been posting 7%-10% grow rates for years. Property and stock market booms had

brought consistent growth in North America and Europe. Investment was bringing economic

development to much of the Middle East and Africa, and even Japan was recovering from its

deflationary lost year. Economic conditions within these countries play a major role in setting

the economic atmosphere of less well-to-do nations and their economies. In many aspects,

developing and less developed economies depend on the developed countries for their

economic wellbeing.

World GDP (PPP ): $65 trillion

GDP Growth Rate : 5.2`%

Growth Rate of Industrial Production : 5%

GDP By Sector: Services - 64% Industry- 32% Agriculture- 4%

GDP Per Capita (PPP): $9,774

Population: 6.65 billion

The Poor (Income below $2 per day): 3.25 billion (approximately 50%)

Millionaires: 9 million ( approximately 0.15%)

Labor Force : 3.13 billion

Exports: $13.87 trillion

Imports: $13.81 trillion

Inflation Rate – Developed Countries: 1% - 4%

Inflation Rate – Developing Countries: 5% - 20%

Unemployment – Developed Countries: 4% - 12%

Unemployment & Underemployment - Developing Countries: 20% - 40%

In 2008 after vigorous growth which produced a dramatic increase in the price of

commodities such as oil and basic foodstuffs, the international economy began to slow in

many countries providing relief from high commodities prices and increasing inflation. It was

the opinion of some observers that the world economy had become somewhat overheated and

was retracting to a more sustainable pace.

WORLD ECONOMIC INDICATORS:-

World Economic Indicators and Indices react to – or even foreshadow – the health of the

global economy.

World economic indicators are specific indices and measures that indicate not only the

overall health of the global economy, but also provide some insight into its future. Economic

indicators can be found in many different forms. Some use economic statistics that illustrate

the ups and downs of particular trends in economic activities. The most commonly used

world economic indicators are: rates of inflation, the unemployment rate, the real GDP

growth rate, GDP-Per Capita, GDP-Purchasing Power Parity, amounts of foreign direct

investment, populations living below the poverty line, and current account balances.

WORLD STOCK MARKET:-

A stock market, or (equity market), is a private or public market for the trading of company

stock and derivatives of company stock at an agreed price; these are securities listed on a

stock exchange as well as those only traded privately.

World stock markets explained, for large and small investors, including a discussion of

securities, derivatives, and the general exchange of stocks around the globe. Around the

world, business organizations, small to large investors, financial organizations, and

governments of different nations are all major participants in stock market trading activities.

Together, the performance of all the world’s stock markets is directly responsible for a

significant amount of the world’s economic condition – whether it be healthy, ailing, or

trending sideways. In general, stock market growth is a leading indicator that the state of an

economy is flourishing, while declining trends indicate of economic slowdown.

Commentators suggest that stock markets often predict what will happen in the economy of

that country around six months later.

The major world stock exchanges are NYSE, NASADAQ, LSE, DOEJ JONES, NIKKI, BSE,

NSE, AUSTRALIA STOCK EXCHANGE etc. Some of exchanges are describe below.

NYSE (New York stock exchange):- The New York Stock Exchange (NYSE) is a stock

exchange based in New York City. It is the largest stock exchange in the world by dollar

volume and has 2,764 listed securities. It ranks fourth in the world in terms of company

listings with 3,200 companies, behind the Bombay Stock Exchange (BSE) of India, London

Stock Exchange and NASDAQ. As of December 31, 2006, the combined capitalization of all

New York Stock Exchange listed companies was $25.0 trillion.

NASADAQ :- The NASDAQ (acronym of National Association of Securities Dealers

Automated Quotations) is an American stock exchange. It is the largest electronic screen-

based equity securities trading market in the United States. With approximately 3,200

companies, it has more trading volume per day than any other stock exchange in the world.

It was founded in 1971 by the National Association of Securities Dealers (NASD), who

divested themselves of it in a series of sales in 2000 and 2001. It is owned and operated by

the NASDAQ OMX Group, the stock of which was listed on its own stock exchange in 2002,

and is monitored by the Securities and Exchange Commission (SEC). the second largest

exchange in the United States. It also operates eight stock exchanges in Europe and holds

one-third of the Dubai Stock Exchange

LSE (London Stock Exchange):- The London Stock Exchange or LSE is a stock exchange

located in London, England. Founded in 1801, it is one of the largest stock exchanges in the

world, with many overseas listings as well as British companies. The LSE is part of the

London Stock Exchange Group plc.Its current premises are situated in Paternoster Square

close to St Paul's Cathedral in the City of London.

Hong kong stock Exchange The Hong Kong Stock Exchange ( abbreviated as HKEX;

SEHK: 0388) is the stock exchange of Hong Kong. The exchange has predominantly been

the main exchange for Hong Kong where shares of listed companies are traded. It is Asia's

second largest stock exchange, behind the Tokyo Stock Exchange.Hong Kong Exchanges and

Clearing is the holding company for the exchange.

BSE:- The Bombay Stock Exchange Limited (formerly, The Stock Exchange, Mumbai;

popularly called The Bombay Stock Exchange, or BSE) is the oldest stock exchange in Asia.

It is also the biggest stock exchange in the world in terms of listed companies with 4700

listed companies as of August 2007. It is located at Dalal Street, Mumbai, India. The Bombay

Stock Exchange was established in 1875. Around 6,000 Indian companies list on the stock

exchange,and it has a significant trading volume.

NSE :- The National Stock Exchange of India Limited or S&P CNX NIFTY (NSE), is a

Mumbai-based stock exchange. It is the largest stock exchange in India in terms of daily

turnover and number of trades, for both equities and derivative trading.. Though a number of

other exchanges exist, NSE and the Bombay Stock Exchange are the two most significant

stock exchanges in India, and between them are responsible for the vast majority of share

transactions. The NSE's key index is the S&P CNX Nifty, known as the Nifty, an index of

fifty major stocks weighted by market capitalization

BRIEF STUDY ON BRIC,S

BRIC’s (BRAZIL, RUSSIA, INDIA, CHINA) :-

In economics, BRIC or BRICs is an acronym that refers to the fast growing developing

economies of Brazil, Russia, India, and China. The acronym was first coined and prominently

used by the investment bank Goldman Sachs (now converted as commercial bank) in

2001.Goldman Sachs argued that, since they are developing rapidly, by 2050 the combined

economies of the BRICs could eclipse the combined economies of the current richest

countries of the world.

Goldman Sachs argues that the economic potential of Brazil, Russia, India, and China is such

that they may become among the four most dominant economies by the year 2050. The thesis

was proposed by Jim O'Neill, global economist at Goldman Sachs. These countries

encompass over twenty-five percent of the world's land coverage, forty percent of the world's

population and hold a combined GDP (PPP) of 15.435 trillion dollars. On almost every scale,

they would be the largest entity on the global stage. These four countries are among the

biggest and fastest growing Emerging Markets.

(However, it is important to note that it is not the intent of Goldman Sachs to argue that these

four countries are a political alliance (such as the European Union) or any formal trading

association, like ASEAN. Nevertheless, they have taken steps to increase their political

cooperation, mainly as a way of influencing the United States position on major trade

accords, or, through the implicit threat of political cooperation, as a way of extracting

political concessions from the United States, such as the proposed nuclear cooperation with

India.) reccomdation

OBJECTIVE:-

To study the world economy and its crises

To study the challenges and opportunities for Brics ..

To study the return on our investment in BRIC’s & its comparison with US since last five years

REARCH METHODOLOGY:

DATA COLLECTION

Data has been collected from the secondary data including various websites and news paper articles

ANALYSIS:-

Analysis of BRICs by SWOT analysis in chronological order

1. BRAZIL

2. RUSSIA

3. INDIA

4. CHINA

GRAPHICAL PRESENTATION

BRAZIL:-

Flag Coat of arm

Brazil (Portuguese: Brasil), officially the Federative Republic of Brazil is the largest and

most populous country in South America It is the fifth largest country by geographical area,

the fifth most populous country, and the fourth most populous democracy in the world. Its

population comprises the majority of the world's Portuguese speakers. Bounded by the

Atlantic Ocean on the east, Brazil has a coastline of over 7,491 kilometers (4,655 mi). It is

bordered on the north by Venezuela, Suriname, Guyana and the overseas department of

French Guiana on the northwest by Colombia on the west by Bolivia and Peru on the

southwest by Argentina and Paraguay and on the south by Uruguay Numerous archipelagos

in the Atlantic Ocean are part of the Brazilian territory, such as Fernando de Noronha, Rocas

Atoll Saint Peter and Paul Rocks and Trindade and Martim Vaz

Brazil was a colony of Portugal from the landing of Pedro Álvares Cabral in 1500 until its

independence in 1822. Initially independent as the Empire of Brazil, the country has been a

republic since 1889. The bicameral legislature (now called Congress) dates back to 1824,

when the first constitution was ratified. The Constitution defines Brazil as a Federal Republic

formed by the union of 26 States the Federal District and the Municipalities (nowadays more

than 5,564).

Brazil is the world's tenth largest economy at market exchange rates and the ninth largest in

purchasing power Economic reforms have given the country new international projection. It

is a founding member of the United Nations, the Union of South American Nations, and the

Community of Portuguese Language Countries The Brazilian population is predominantly

Roman Catholic, almost all Portuguese-speaking and multiethnic Brazil is also home to a

diversity of wildlife, natural environments and extensive natural resources in a variety of

protected habitats.

ECONOMY OF BRAZIL:-

Brazil has a moderate free market and export-oriented economy. Measured nominally, its

gross domestic product surpasses a trillion dollars, the tenth in the world and the third in the

Americas; measured by purchasing power parity, $1.9 trillion, making it the eighth largest

economy in the world and the second largest in the Americas, after the United States.In Reais

(brazilian currency), its GDP is estimated at R$2.6 trillion reais in 2007.

STOCK MARKET OF BRAZIL:-

The BM&F Bovespa is a São Paulo-based stock exchange. It is the second largest stock

exchange in The Americas and the third largest in the world. On May 8, 2008, the São Paulo

Stock Exchange (Bovespa) and the Brazilian Mercantile and Futures Exchange (BM&F)

merged, creating the new BM&F Bovespa. The BM&F Bovespa is linked to all Brazilian

stock exchanges, including Rio de Janeiro's Boverj (BVRJ), where only government bonds

are traded. The benchmark indicator of Bovespa is the 50-stock Índice Bovespa. There were

450 companies traded at Bovespa as of April 30, 2008On May 20, 2008 the Bovespa index

reached its 10th consecutive record mark closing at 73,516 points, with a traded volume of

USD 4.2 billion or BRL 7.4 billion.

BOVESPA S.A. - Securities, Commodities and Futures Exchange was created in 2008 with

the integration between the Brazilian Mercantile & Futures Exchange (BM&F) and the São

Paulo Stock Exchange (Bovespa).Together, the companies have formed the third largest

exchange worldwide in terms of market value, the second largest in the Americas, and the

leading exchange in Latin America.In today’s global scenario, in which responding quickly to

transformation has become a competitive asset, BM&FBOVESPA is an attractive investment

option with cost efficient trading fees.Among its broad range of trading products, the new

Exchange offers equities, securities, financial assets, indices, interest rates, agricultural

commodities, and foreign exchange futures and spot contracts.

São Paulo Stock Exchange

    ANALYSIS:

STRENGTH:-

Brazil has the second most advanced industrial sector in the Americas.

Proven mineral resources are extensive. Large iron and manganese reserves are

important sources of industrial raw materials and export earnings. .

Brazil is one of the world's leading producers of hydroelectric power, with a current

capacity of about 78,000 megawatts.

Brazil has three commercial nuclear reactor, Angra I, located near Rio de Janeiro,.

Angra II was completed in 2002. An Angra III is almost completed, planned

inauguration is 2008. The three reactors would have combined capacity of 5,000

megawatts when completed.

Brazil has also achieved positive results within the packaging sector, in which it is the

fifth largest world producer.

It provides for 25% of global exports of raw cane and refined sugar; it is the world

leader in soybean exports and is responsible for 80% of the planet’s orange juice.

The Policy for Industry, Technology and Foreign Trade, at the forefront of this sector,

for its part, invests R$ 18.5 billion in specific sectors, following the example of the

software and semiconductor, pharmaceutical and medicine product, and capital goods

sectors.

Government gives impotence to the ruler producer which help in agricultural

development. It has 7.2% growth rate in agriculture.

Brazil has large and growing agricultural, mining, manufacturing and service sectors.

Brazil economy ranks highest among all the South American countries and it has also

acquired a strong position in global economy..

The present GDP is $1.6 trillion and the real growth rate of GDP is 3.7%. rate of

unemployment is 9.6% and inflation is 3%.Major industries are textiles, shoes,

chemicals, aircraft, steel, motor vehicles, etc. Agricultural products includes coffee,

soybeans, wheat, rice, corn, sugarcane, cocoa, citrus; beef.

There has also been a great development in the field of science and technology in

Brazil due to the foreign investment in the country.The technological area of Brazil

consists of the making of airplanes and submarines.

Brazil also plays a major role in the field of space research.

Brazil is famous for the ethanol that is produced in large amounts in the country.

Brazil is the largest country that has car assembling companies within itself.

It has also excelled in the field of water oil research and scientific developments in

various other fields.

The labor force in Brazil comprises the majority of the Brazil economy.

Industries: textiles, shoes, chemicals, cement, lumber, iron ore, tin, steel, aircraft,

motor vehicles and parts, other machinery and equipment.

the world’s top exporter of beef, coffee, orange juice, poultry, soya beans and sugar, it

is also a giant in the global iron ore trade and holds the status as the world’s largest

exporter of ethanol.

WEAKNESS:-

Economy of Brazil also has weaknesses. These are mostly related to debts. Domestic

debts went up from 1994 to 2003. But Brazil controlled this rise in 2006. The

president has introduced economic programs to control taxes and increase public

investment.

High-quality cooking-grade coal required in the steel industry is in short supply

The bottom 50% of the population earned only 19.07% of the total income while the

richest 10% of the population earned 39.31% of the total national income. Inequality

is a historic problem for Brazil, but has improved in recent years.

The economy of Brazil grew only 2.2% per year (average). The country was hit by a

number of global and internal economic crises. But Brazil economy did not collapse.

Brazil is also weak in the innovation system—a telling indicator is that their spending

on research and development as a percentage of GDP is less than a third of what it is

in developed countries.

In terms of the information infrastructure (telephones, computers, Internet, and so on),

It lag considerably behind advanced countries such as the United States,

Brazil's industrial production continued to face some problems caused by the

weakness of domestic demand and the loss of competitiveness among manufacturers,

as generated by the local currency's strong revaluation. Thus, the index of industrial

production reported a marginal increase of 0.1% in October, with respect to

September.

OPPORTUNITY

For the creation of new knowledge, and for the dismantling of obsolete activities and

the start-up of more efficient new ones.

To bring currency down to a reasonable value.

Business land opportunity for Brazil it has productive and beautiful regions with a

very fertile soil.

An income opportunity in Brazil, that yields 18.8% annually.

As Brazil is rich in resources it has much business opportunity.

There is lot of space in communication, transportation, export, and technology sector

for Brazil.

Brazil has great ethanol production capacity, which is good option for petrol in next

year.

THREAT:-

Corruption, Ignorance & Complacency is common threat in brazil.

Climate threat for Brazil Soya export.

Brazilian business faces a wave of strikes. Emboldened by an economic recovery that

is expected to push growth above 4% this year, workers in several industries are

threatening walkouts for higher wages. Bank employees in 30 cities have been on

strike for a week, while a walkout at airline Vasp grounded flights on Sept 21. Metal

and chemical workers in Brazil's industrial belt are also threatening strikes. Workers

are demanding pay hikes on the order of 4% to 17% above inflation, which is already

running higher than the Central Bank's year target of 5.5%. Brazil's left-leaning

President, Inácio Lula da Silva, a onetime union leader, has so far resisted calls to

intervene in negotiations involving civil workers in the state of Sao Paulo.

High inflation rate causes darer of many products

The threat of weapons of mass destruction in Brazil.

RUSSIA:-

Russia the Russian Federation is a transcontinental country extending over much of northern

Eurasia It is a semi-presidential republic comprising 83 federal subjects. Russia shares land

borders with the following countries (anticlockwise from northwest to southeast): Norway,

Finland, Estonia, Latvia, Lithuania, Poland (via Kaliningrad Oblast), Belarus, Ukraine,

Georgia Abkhazia South Ossetia, Azerbaijan, Kazakhstan, China, Mongolia and North

Korea. It also borders the Arctic Ocean, the Pacific Ocean, the Caspian Sea, the Baltic Sea,

and the Black Sea. Russia is close to the United States (Alaska) and Japan.

At 17,075,400 square kilometers, Russia is the largest country in the world, covering more

than an eighth of the Earth’s land area; with 142 million people, it is the ninth largest by

population. It extends across the whole of northern Asia and 40% of Europe, spanning 11

time zones and incorporating a great range of environments and landforms. Russia has the

world's greatest reserves of mineral and energy resources and is considered an energy

superpower. It has the world's largest forest reserves and its lakes contain approximately one-

quarter of the world's unfrozen fresh water.

Russia established worldwide power and influence from the times of the Russian Empire to

being the largest and leading constituent of the Soviet Union, the world's first and largest

constitutionally socialist state and a recognized superpower. The nation can boast a long

tradition of excellence in every aspect of the arts and sciences. The Russian Federation was

founded following the dissolution of the Soviet Union in 1991, but is recognized as the

continuing legal personality of the Soviet Union. It has one of the world's fastest growing

major economies and has the world's eleventh largest GDP by nominal GDP or seventh

largest by purchasing power parity with the eighth largest military budget. Russia is a

permanent member of the United Nations Security Council, a member of the G8, APEC and

the SCO and is a leading member of the Commonwealth of Independent States. It is one of

the five recognized nuclear weapons states and possesses the world's largest stockpile of

weapons of mass destruction.

ECONOMY OF RUSSIA:-

Russia is a unique emerging market, in the sense that being the nucleus of a former

superpower shows more anomalies. On one hand, its exports are primarily resource based,

and on the other, it has a pool of technical talent in aerospace, nuclear engineering, and basic

sciences. How this peculiar emerging market integrates itself into the world economy over

the coming decade is a story as significant in today's world as the reemergence of China and

India

Russia ended 2007 with its ninth straight year of growth, averaging 7% annually Although

high oil prices and a relatively cheap ruble initially drove this growth, s Over the last six

years, fixed capital investments have averaged real gains greater than 10% per year and

personal incomes have achieved real gains more than 12% per year. Russia has also improved

its international financial position The federal budget has run surpluses since 2001 and ended

2007 with a surplus of about 3% of GDP. Over the past several years, Russia has used its

stabilization fund based on oil taxes to prepay all Soviet-era sovereign debt to Paris Club

creditors and the IMF. Foreign debt is approximately one-third of GDP. The state component

of foreign debt has declined, but commercial debt to foreigners has risen strongly. During

President PUTIN's first administration, a number of important reforms were implemented in

the areas of tax, banking, labor, and land codes. These achievements have raised business and

investor confidence in Russia's economic prospects, with Rising inflation returned in the

second half of 2007, driven largely by unspecialized capital inflows and by rising food costs,

and approached 12% by year-end. In 2006, Russia signed a bilateral market access agreement

with the US as a prelude to possible WTO entry, and its companies are involved in global

merger and acquisition activity in the oil and gas, metals, and telecom sectors. Despite

Russia's recent success, serious problems persist. Oil, natural gas, metals, and timber account

for more than 80% of exports and 30% of government revenues, leaving the country

vulnerable to swings in world commodity prices. Russia's manufacturing base is dilapidated

and must be replaced or modernized if the country is to achieve broad-based economic

growth. The banking system, while increasing consumer lending and growing at a high rate,

is still small relative to the banking sectors of Russia's emerging market peers. Political

uncertainties associated with this year's power transition, corruption, and lack of trust in

institutions continue to dampen domestic and foreign investor sentiment. PUTIN has granted

more influence to forces within his government that desire to reassert state control over the

economy. Russia has made little progress in building the rule of law, the bedrock of a modern

market economy. The government has promised additional legislative amendments to make

its intellectual property protection WTO-consistent, but enforcement remains problematic.

STOCK MARKET OF RUSSIA:-.

The Russian Trading System is a stock market established in 1995 in Moscow, consolidating

various regional trading floors into one exchange. Originally RTS was modeled on

NASDAQ's trading and settlement software; in 1998 the exchange went on line with its own

in-house system. Initially created as a non-profit organization, at the moment RTS is in the

process of reorganization: it is being transformed into a joint-stock company. RTS data is

distributed world-wide through major financial information vendors such as Reuters.

Russia's stock market surged 686 percent from 2001 through 2005 - and another 66 percent

2006The RTS Stock Exchange markets are open from 10:30 a.m. till 6:00 p.m. Moscow time

(GMT+3).

RTS Indexes

The RTS Stock Exchange calculates and publishes 9 indexes: RTS Index, RTS-2 Index, and 7

sect oral indexes. The RTS Index and the RTS-2 Index are calculated using two different lists

of stocks The RTS Index, RTSI, the official Exchange indicator, first calculated on

September 1, 1995, is similar in function to the Dow Jones Average in New York City

RTSI is computed on thirty-minute intervals using real-time prices of the 50 most liquid

Russian stocks listed on the Exchange and is relayed to the RTS Web site, RTS workstations

and news agencies. The constituent list of stocks is reviewed every 3 months.The RTS-2

Index is calculated based on the list of 69 second-tier stocks.

ANALYSIS:

  STRENGTHS:-

Good universities; excellent engineering skills

Dynamic local vendor landscape (particularly in Russia)

Lowest labor cost across Europe; lower attrition rates than India

Geographic and cultural proximity to Western Europe (with some exceptions Reform

oriented govt.)

Strong trade balance

Strong natural resource based groups, including major deposits of oil, natural gas,

coal, and many strategic minerals, timber .

High S&T manpower

Strong basic research

High S&T capability

High average educational levels

Software development capabilities

Poverty has declined steadily and the middle class has continued to expand.

Oil export earnings have allowed Russia to increase its foreign reserves from $12

billion in 1999 to some $470 billion at yearend 2007, the third largest reserves in the

world.

Foreign direct investment rising from $14.6 billion in 2005 to approximately $45

billion in 2007.

In 2007, Russia's GDP grew 8.1%, led by non-tradable services and goods for the

domestic market, as opposed to oil or mineral extraction and exports.

Russia has made little progress in building the rule of law, the bedrock of a modern

market economy.

  WEAKNESS:-

Relative geopolitical instability

Travel restrictions to and from Russia

Weak business education

Potential corruption; potential security and IP protection issues

Weak infrastructure outside metropolitan areas

Poor investment climate

Poor rule of law

Weak financial system

Dutch disease

Poor linkages with productive sector

Insufficient use of global knowledge

Weak diffusion systems

Poor link to labor market

Weak Life Long Learning

Lack of flexibility of educational system

Low penetration ratios

High prices

Poor application and use

OPPORTUNITIES:-

Become more sought after as inter-national track record with clients grows

Become more attractive as rates in new EU member states move up

More agile local vendors as a result of enhanced government support

Build more external awareness following merger of Fort Ross and RusSoft

Reverse capital flight and tap FDI by improving investment climate

Develop financial system

Tap global knowledge to increase value added in natural resources and diversify

economy

Harness potential of strong S&T base

Launch major re-skilling program

Institute LL learning

Reform higher education to market needs

Expand penetration ratios

Focus on applications

Mordnization of business system.

THREATS:-

India, China, new EU member states

Qualified staff moving abroad

Lack of quality middle management

Rising costs of living in metropolitan areas (St. Petersburg, Moscow) to push up labor

costs

Continued capital flight

Big industrial groups may capture government

Falling behind global advances in knowledge

Continued loss of scientific talent

Continued brain drain

Resistance from established institutions

Rigid university curri-culums

Risk of digital divide

Russia’s growth is acknowledged as unsustainable

Russia is too dependent on natural resource sector (only sector growing, accounts for

80% of exports)

Industrial sector is technologically outmoded and not competitive

Russian economy suffers from overvalued exchange rate because of strong natural

resource exports

Only dynamic actors are natural resource based industrial groups

High human capital and strong science base are depreciating

Russia risks becoming just a natural resource exporting economy

Russia needs to diversify and upgrade its economy to improve international

competitiveness

Russia risks becoming just a natural resource exporting economy

Russia needs to diversify and upgrade its economy to improve international

competitiveness

INDIA :-

It is the seventh largest country by geographical area, the second most populous country, and

the most populous democracy in the world. Bounded by the Indian Ocean on the south, the

Arabian Sea on the west, and the Bay of Bengal on the east, India has a coastline of

7,517 kilometers (4,671 mi). It borders Pakistan to the west; China, Nepal, and Bhutan to the

north-east; and Bangladesh and Burma to the east. India is in the vicinity of Sri Lanka, the

Maldives, and Indonesia in the Indian Ocean.

India is a parliamentary republic consisting of 28 states and 7 union territories. It has the

world's twelfth largest economy at market exchange rates and the fourth largest in purchasing

power. Economic reforms have transformed it into the second fastest growing large economy;

however, it still suffers from high levels of poverty, illiteracy, and malnutrition. A pluralistic,

multilingual, and multiethnic society India is also home to a diversity of wildlife in a variety

of protected habitats.

ECONOMY:-

The economy of India, measured in USD exchange-rate terms, is the twelfth largest in the

world, with a GDP of around $1 trillion (2008). It recorded a GDP growth rate of 9.1% for

the fiscal year 2007–2008 which makes it the second fastest big emerging economy, after

China, in the world. At this rate of sustained growth many economists forecast that India

would, over the coming decades, have a more pronounced economic effect on the world

stage. Despite this phenomenal rate of growth, India's large population has a per capita

income of $2,659, measured by PPP, and $978, measured in nominal terms (revised 2007

estimate). The World Bank classifies India as a low-income economy.

India's economy is diverse and consists of various activities including manufacturing,

agriculture and services. Although (exact fraction needed here) of the Indian workforce still

earn their livelihood directly or indirectly through high tech, services are a growing sector

and play an increasingly important role in India's economy. The advent of the digital age, and

the large number of young and educated populace fluent in English, is gradually transforming

India as an important 'back office' destination for global outsourcing of customer services and

technical support. India is a major exporter of highly-skilled workers in software and

financial services, and software engineering. Other sectors like manufacturing,

pharmaceuticals, biotechnology nanotechnology, telecommunication shipbuilding, aviation,

tourism and retailing are showing strong potentials with higher growth rates.

India followed a socialist-inspired approach for most of its independent history, with strict

government control over private sector participation, foreign trade, and foreign direct

investment. However, since the early 1990s, India has gradually opened up its markets

through economic reforms by reducing government controls on foreign trade and investment.

The privatisation of publicly owned industries and the opening up of certain sectors to private

and foreign interests has proceeded slowly amid political debate.

India faces a fast-growing population and the challenge of reducing economic and social

inequality. Poverty remains a serious problem, although it has declined significantly since

independence

STOCK MARKET OF INDIA:-

Indian stock market run by two popular exchange, Bombay stock exchange (BSE) and

national stock exchange (NSE) out of them some regional exchange are also running.

Bombay Stock Exchange :-

The Bombay Stock Exchange, in Mumbai, is Asia's oldest and

India's largest stock

BSE:- Bombay Stock Exchange, or BSE) is the oldest stock

exchange in Asia. It is also the biggest stock exchange in the world

in terms of listed companies with 4700 listed companies as of August 2007. It is located at

Dalal Street Mumbai, India. On 31 December 2007, the equity market capitalization of the

companies listed on the BSE was US$ 1.79 trillion, making it the largest stock exchange in

South Asia and the tenth largest in the world

The Bombay Stock Exchange was established in 1875. Around 6,000 Indian companies list

on the stock exchange, and it has a significant trading volume. The BSE SENSEX , also

called the "BSE 30", is a widely used market index in India and Asia Though many other

exchanges exist

National Stock Exchange:-

NSE: - The National Stock Exchange of India Limited or S&P CNX NIFTY (NSE), is a

Mumbai-based stock exchange. It is the largest stock exchange in India in terms of daily

turnover and number of trades, for both equities and derivative trading.. Though a number of

other exchanges exist, NSE and the Bombay Stock Exchange are the two most significant

stock exchanges in India and between them are responsible for the vast majority of share

transactions. The NSE's key index is the S&P CNX Nifty, known as the Nifty, an index of

fifty major stocks weighted by market capitalization.NSE is mutually-owned by a set of

leading financial institutions, banks, insurance companies and other financial intermediaries

in India but its ownership and management operate as separate entities. As of 2006, the NSE

VSAT terminals, 2799 in total, cover more than 1500 cities across India. In October 2007, the

equity market capitalization of the companies listed on the NSE was US$ 1.46 trillion,

making it the second largest stock exchange in South Asia. NSE is the third largest Stock

Exchange in the world in terms of the number of trades in equities. It is the second fastest

growing stock exchange in the world with a recorded growth of 16.6%.

ANALYSIS:

  STRENGTHS  

Highly educated , skilled ,young, capable & dynamic  human resources

English speaking & analytical students

World class business-social-spiritual –political leader, Professor, scientist, Manager-

Doctor-Engineer-Civil servants etcs

Very rich in  Natural & Living resources

Biodiversity & Traditional knowledge base

Diversity vs. Ideas-Innovation-Integration

Powerful spiritual strength (yoga-Ayurvada-Healing-therapy services)

Geographical location (whole markets are shifting toward Asian nations)

India Strategic position at various platforms

Big democracy, Big market & free media

Range of emerging professional champions

IT & Software superpower

WEAKNESSES: 

Lack of trained & skill work force  

Small supply of specialize professional

Lack of spirits of entrepreneurship, patriotisms and leadership skill

Lack of effective & execution framework

Lack of Indian management models

Lack of transparency-Trust-Responsibility

Lack of learning habits & Team work spirit

Fear of sharing knowledge & taking risk

Thinking win-lose   lose-win   look-outside

Slow absorption of Innovation & change

Lack of Indian management models

Absence of greater technology impetus

Unawareness: Quality-Standardization

Lack of Emotional-Spiritual development

Rush of getting high marks not Development

OPPORTUNITIES  

Big potential market in education Sector & emerging new market Segment in services

(create it)   

General Agreement of trade on Services

Research & Development capability

Generate intellectual property

Resource Building capacity

Competition- cost – Quality service

THREATS

A feeling of unstable government

Self centered political leadership

Slow & Dysfunctional judiciary and corrupt law enforcers

Regulation, protection and restriction

Mechanistic -stable-Layered-complex system

Corruption, Ignorance & Complacency

High competitive & marketing forces

To patent Indian intellectual property by outsider (unawareness about own

research)

Fast change Internet-information technology& new Inventions-Technology-

Innovations

Diversity vs. Imbalance- clashes

Regional-Religion-caste-culture conflicts

Migration of all branch to software job

Job seeking mind sets, not job creator

Unnecessary social pressure on students

Excessive rich & powerful mindsets

CHINA:-

China has one of the world's oldest people and continuous civilizations, consisting of states

and cultures dating back more than six millennia. It has the world's longest continuously used

written language system, and is the source of many major inventions, such as what the British

scholar and biochemist Joseph Needham called the "four great inventions of Ancient China":

paper the compass, gunpowder, and printing. Historically, China's cultural sphere has

extended across East Asia as a whole, with Chinese religion, customs, and writing systems

being adopted to varying degrees by neighbors such as Japan, Korea and Vietnam. The last

Chinese Civil War has resulted in two political entities using the name China.

The People's Republic of China (PRC), commonly known as China, has control over

mainland China, and the largely self-governing territories of Hong Kong (since 1997) and

Macau (since 1999). The Republic of China (ROC), commonly known as Taiwan, has control

over the islands of Taiwan, Pescadores, Kinmen and Matsu.

ECONOMY OF CHINA:-

China’s economy today is ten times larger than it was in 1978, and continues to grow at 10

percent per year. By contrast, since 1980, roughly the beginning of economic reform in

China, up until 2005 yearend, the economy of Latin America as a whole grew 10 percent not

per year, but cumulatively. And in comparison with 28 years of 9-10 percent annual growth

in China, the growth of India’s economy has accelerated to only 6 percent, and only since

1991. The result is that the Chinese economy is now three times that of India, and the gap is

growing.

Two important dimensions of this growth are the emergence of a large middle class and a

rising income gap. As an indicator of how a few people in China have become fabulously

wealthy, in 2003, worldwide sales of Bentley automobiles were 200; 70 of them were sold in

China at price of 2 million rmb, or 250 times average urban income. The U.S. equivalent

would be if 200 people bought those cars at $7.5 million each.

The urban-rural gap was large even in the Maoist era (Mao gave a lot of lip service to

promoting the peasants’ interests, but most of that era’s policies actually favored urban

dwellers). The gaps that have increased in the reform period of the last few decades are

between the coastal areas and the inland. The coastal areas have done extremely well because

of the growing importance of foreign trade; most foreign trade involves production and

workers along a narrow strip along the coast, particularly Pearl River Delta and the Yangtze

Delta, the area from Shanghai up the Yangtze River and a little bit in the northeast. These

areas have been the major participants in international trade, with a big demand for labor, and

incomes in those areas have gone up particularly rapidly.

STOCK MARKET OF CHINA:-

The Shanghai Stock Exchange (SSE) is a Chinese stock exchange

based in the city of Shanghai, with a market capitalization of nearly

US$3.02 trillion (2007) making it the largest in mainland China and

fifth largest in the world. The current exchange was re-established

on November 26, 1990 and was in operation on December 19 of the same year. It is a non-

profit organization directly administered by the China Securitie Regulatory Commission

(CSRC).

Mainland China has a second, smaller, stock exchange: the Shenzhen Stock Exchange,

located in the city of Shenzhen. The distinction is made for Mainland China because the

Hong Kong Stock Exchange, located in the special administrative region of Hong Kong, is

the largest stock exchange in China, and has a separate history.

Shanghai Stock Exchange

    ANALYSIS:

STREANTH:-

Accelerated economic development.

Increased comprehensive national strength.

GNP increasing an average of 9% annually

Export growth of 25% and imports up 15%.

Will continue to dominate light and medium-tech industries.

Key Money Recipient and Direct Foreign investment

Leads world in direct foreign investment - $135 billion.

All China's exports (or about $46.9 billion).

This netted about $8.4 billion in taxes

Moving to a market economy.

Will be one of the world's six largest economies by 2020 with Japan, Indonesia, India,

and Korea and the US, according to the World Bank.

Rich reserves of natural resources.

Chinese prefer to work with U.S. companies for oil exploration and coal mine

development.

Chinese allow compensation, trade, or cooperative ventures.

Large Population Base and Potential Customers per capita consumption is low, but

with a large population, opportunity is incredible, especially for low-end products.

Also represent large future potential as buying power is increasing rapidly.

World's most lucrative market (Schafer, 1996) of which China represent one-sixth of

the world’s population.

Favorable Government Policies. Committed to economic growth at the national policy

level.

Overseas-funded enterprises are granted equal status as domestic enterprises for taxes,

sales & transportation, purchase, distribution and operations.

WEAKNESSES

Hard to control distribution of products.

Some disorder in the financial sector.

Energy, transportation, and important raw material have remained issue slowing

growth.

Agriculture lacks staying power.

Production in cities has displaced rural worker

Average inflation is 15%, and surplus labor has regulated in rising unemployment and

inequalities in income distribution.

Wage growth has not kept pace with inflation

Infrastructure Railway, roads, communications and power supply are below standard.

Employees need customer service tranning.

training.

180 million illiterates or semi-illiterates over the age of 15.

Little concept of maintenance or quality control.

Employees could lack the productivity and innovation to guarantee continuous

growth.

Shortage of construction funds for expansion of infrastructure and industrial

production capacity.

expansion of infrastructure and industrial product capacity.

Short supply of energy in some industrial market.

Lack of electricity, fuel, and raw material.

Lack of modern pollution control.

Sewage, industrial waste, and pollution are growing problems, and china is home to

four of the world,s ten dirties cities.

OPPORTUNITIES:-

Direct Investments or Joint Ventures.

To provide advanced technology that can be mastered by the chinese

Easy-to-target bottleneck industries of energy, communication, and transportaion.

Equity and contractual ventures provide quicker access to the market.

Partners in China can help with the bureaucracy, coustmer base and distribution.

Financing Infrastructure Projects

Opportunity to increase the available electricity to more than 120 million rural

citizens without electricity

Need for overseas investment in coastal ports since more than 90% of exports are

Carried by sea..

Chrysler has a China Concept Vehicle made of recycled plastic planned to sell for

about $5,000.

Improving Trade Relations, APEC, the Asian Pacific Economic Cooperation Forum,

leaders have a vision to create the world's biggest free trade region for developing

countries in Asia by 2020 3-year moratorium on adding new members in APEC

expires on December 31, 1996. The 18 member nations including Hong Kong, China,

and the U.S. will have other future trade partners.

Tariffs cut on computers,

semiconductors, and telecommunications equipment and other information equipment

to boost competitiveness.

THREATS

Long-Run Success

Effectiveness of investments in China

will only be evident in the long-run and policies make it hard for non-China

companies to make money.

Reporting and Accounting Standards Fall behind Western requirements.

Only a small group of certified practicing accountants in China.

Lack of modern financial reporting makes the economy less attractive to foregine

investors.

Lack of a legal structure .

Cultural Differences and Tradition Cause of many business conflicts

Advocate collectivism and not individualism. Citizens have a long-term view and the

rigid educational systems stifle individualism

Chinese take time in negotiations and dispute resolution.

Non-Western work habits and slow bureaucracy are frustrating.

Prefer harmony in all family, business, and social settings

Must hire Chinese managers to better understand the role of courtesy, sensitivity, and

perception in the culture

Uncertain Advertising Market, Strict advertising rules that ban, superlative claims and

comparative advertising

Differences in dealing with government controlled media.

Political Risk

Rapid internal changes in Chinese society.

Rising jobless rate, social unrest, and nonperforming

state enterprises (A Hard Soft' Landing ...," 1996).

Bringing China's mixed market and centrally planned economy into World Trade

Organization GATT.

Risk from further market-oriented reform.

Revelations between the central Chinese government and fast growing provinces

Changes to a single currency, length of workweek, and tax system as well as unclear

responsibilities.

Corruption is widespread at township, county, and even provincial levels

Lack of protection of intelligent property.

Slow government approvals for operations.

Differences over human rights, trade, and nuclear weapon non-proliferatio

State-Run Enterprises vs. Entrepreneurs

Failure to reform and privatize state both heavy industries and high tech.

The state enterprises take 70% of bank lending and yield overproduction, inefficiency

and wasted funds on misguided property and financial investment.

Entrepreneurs are forced to raise funds from local governments, friends, or foreigners

due to lack of access to capital.

China's economic modernization presents great opportunities to U.S. businesses. If we are to

strengthen our economic performance and enhance our long-term economic security,

U.S.companies must move quickly to capitalize on the world's fastest growing market.

Despite the risks, problems, and challenges, there can certainly be rewards for U.S.

companies that are planning to operate in China.

Unlike countries such as Russia, China has made significant progress in discarding much of

its former central planning and socialist ideas. In March 1999, the Communist party adopted

a plan to accelerate liberalization of the economy. Nevertheless, given the complexity of

Chinese society, one cannot predict the way China will develop politically and economically.

While few in the current leadership advocate a return to state planning, strong disagreements

remain over the pace of economic and political reform. This means that China's emergence as

an economic powerhouse will surely not follow the steady and incremental growth that Japan

experienced. But despite the turmoil ahead, China has reached the point of no return. The

current leadership is pursuing a strategy of economic reform that would not destabilize its

political power. There is little chance, however, that the Chinese would accept any effort to

roll back the clock to economic stagnation.The trend is that no matter who prevails in

Beijing, a quarter of humankind is going to continue moving ahead with economic changes

that are helping to create a 21st century

Painting BRIC by numbers

Lists   Brazil   Russia   India   China

Countries by total area 5th 1st 7th 3rd / 4th (disputed)Countries by

Population5th 9th 2nd 1st

Countries by

GDP (nominal).10th 11th 12th 4th

Countries by

GDP (PPP)9th 7th 4th 2nd

Countries by export. 21st 11th 23rd 2nd

Countries by imports 26th 17th 16th 2ndCountries by current

Account balance.29th 5th 154th 1st

Countries by received FDI

16th 12th 29th 5th

Countries by foreign

Exchange reserve.7th 3rd 4th 1st

Countries by external

Debt.25th 20th 29th 22nd

Countries by public

debt47th 117th 29th 98th

Countries by electricity consumption

10th 3rd 7th 2nd

Countries by number

Of mobile number6th 4th 2nd 1st

Countries by number

of internet user5th 11th 4th 1st

Acoording to Goldmen sache BRICs GDP in 2050

BRIC in 2050

Gross Domestic Product [2007] Gross Domestic Product [2050][11]

Rank CountryGDP (millions of

USD)

1  United States 13,843,825

2  Japan 4,383,762

3  Germany 3,322,147

4  China 3,250,827

5 United

Kingdom2,772,570

6  France 2,560,255

7  Italy 2,104,666

Rank CountryGDP (millions of

USD)

1  China 70,710,000

2  United States 38,514,000

3  India 37,668,000

4  Brazil 11,366,000

5  Mexico 9,340,000

6  Russia 8,580,000

7  Indonesia 7,010,000

8  Spain 1,438,959

9  Canada 1,432,140

10  Brazil 1,313,590

11  Russia 1,289,582

12  India 1,098,945

13  South Korea 957,053

14  Australia 908,826

15  Mexico 893,365

8  Japan 6,677,000

9 United

Kingdom5,133,000

10  Germany 5,024,000

11  Nigeria 4,640,000

12  France 4,592,000

13  South Korea 4,083,000

14  Turkey 3,943,000

15  Vietnam 3,607,000

Gross Domestic Product per capita [2007][12]

Gross Domestic Product per capita [2050][13]

Rank CountryGDP per capita (in

USD)

1   United States 45,790

2  United

Kingdom44,693

Rank CountryGDP per capita (in

USD)

1   United States 91,683

2   South Korea 90,294

3   France 41,523

4   Canada 40,222

5   Germany 40,079

6   Italy 35,494

7   Japan 34,254

8   South Korea 19,983

9   Russia 9,115

10   Turkey 8,893

11   Mexico 8,486

12   Brazil 6,859

13   Iran 3,815

14   China 2,485

15   Indonesia 1,918

3  United

Kingdom80,234

4   Russia 78,576

5   Canada 76,002

6   France 75,253

7   Germany 68,253

8   Japan 66,846

9   Mexico 63,149

10   Italy 58,545

11   Brazil 49,759

12   China 49,650

13   Turkey 45,595

14   Vietnam 33,472

15   Iran 32,676

Over the next 50 years, Brazil, Russia, India and China—the BRICs economies—could

become a much larger force in the world economy. We map out GDP growth, income

per capita and currency movements in the BRICs economies until 2050.

GRAPHICAL INTERPRITATION:-

% chnage in rate

73.81%-8.22%-4.48%4.69%

20.90% 2004

2005

2006

2007

2008

-2650.00

%

21.62%

-120.00

%

60.87%

-54.90%1

2

3

4

5

1.REAL GDP GROWTH RATE GRAPH OF BRICs AND US, UK AND JAPAN

Defination of real GDP growth rate:-

The list of countries of the world sorted by their gross domestic product (real) growth rate

shows the increase in value of all final goods and services produced within a nation in a given

year -- not taking into account Purchasing power parity and taking into account inflation. It is

a measure of economic development.

Real GDP growth rate of Brazil.

1.00%

-0.20%

5.10%

2.30%3.70%

4.50%2003

2004

2005

2006

2007

2008

The above graph shows real GDP Growth Rate of Brazil for six consecutive years and graph

‘B’ represent percentage change in each year. We can infer from this graph that the Brazil

economy developing year by year, it reached 4.50% from 1% in six year with 2.73% averge

growth rate.

Real GDP growth rate of Russia.

Real GDP Growth Rate of Russia

4.20%

7.30%

6.70%6.40%

6.70%

8.10%2003

2004

2005

2006

2007

2008

The above graph shows real GDP Growth Rate of Russia for six consecutive years and graph

‘B’ represent percentage change in each year. We can infer from this graph that the Russia

economy developing year by year, it reached 8.10% from 4.20% in six year with 6.56%

average growth rate.

Real GDP growth rate of India

Real GDP Growth rates of india

4.30%

8.30%

6.20%8.40%

9.20%

8.50%

2003

2004

2005

2006

2007

2008

Percent change in rate

93.02%35.48%

9.52%

-25.30%

-7.61% 2003

2004

2005

2006

2007

The above graph shows real GDP Growth Rate of Russia for six consecutive years and graph

‘B’ represent percentage change in each year. We can infer from this graph that the India

economy developing year by year, it reached 8.50% from 4.30% in six year with 7.48%

average growth rate.

Real GDP growth rate of China.

Real GDP Growth rate of China

8.00%

9.10%

9.10%10.20%

10.70%

11.40%2003

2004

2005

2006

2007

2008

% change in rate

13.75%

0.00%12.09

%

4.90%

6.54%2004

2005

2006

2007

2008

The above graph shows real GDP Growth Rate of China for six consecutive years and graph

‘B’ represent percentage change in each year. We can infer from this graph that the China

economy developing year by year, it reached 11.40% from 8.00% in six year with 9.75%

average growth rate.

Real GDP Growth rate of world major countries

2.22.91.91.82.6

1.9

9.2

5.4

34.1

8.1

11.4

US

UK

Japan

France

Germany

Italy

Russia

China

India

Brazil

The graph above represents the real GDP Growth Rate of world major countries which represents world economy. It is clear from the graph that BRICs contributes substantial part in the world economy. Represent by yellow part in above graph.

GDP (purchasing power parity) (Billion $):-

The GDP dollar estimates given on this page are derived from purchasing power parity (PPP) calculations. Using a PPP basis is arguably more useful when comparing generalized differences in living standards on the whole between nations because PPP takes into account the relative cost of living and the inflation rates of the countries, rather than using just exchange rates which may distort the real differences in income. However, economies do self-adjust to currency changes over time, and technology intensive and luxury goods, raw materials and energy prices are mostly unaffected by difference in currency (the latter more by subsidies), despite being critical to national development, therefore, the sales of foreign apparel or gasoline per liter in China is more accurately measured by the nominal figure, but everyday food and haircuts by PPP.

Rank Country GDP (purchasing power parity) (Billion $)

1 United States 13,860

2 China 7,043

3 Japan 4,417

4 India 2,965

5 Germany 2,833

6United Kingdom

2,147

7 Russia 2,076

8 France 2,067

9 Brazil 1,838

10 Italy 1,800

The above figure shows the top ten countries by GDP (PPP), which shows the living standard of the nation and it is clear from the figure tha BRICs posses good living standard in the world , which shows its economic compatibility

2.Rank of BRICs in World Population:-

Rank Country Population

1 China1,330,044,605

2 India1,147,995,898

3United States

303,824,646

4 Indonesia 237,512,355

5 Brazil 191,908,598

6 Pakistan 167,762,040

7Bangladesh

153,546,901

8 Russia 140,702,094

9 Nigeria 138,283,240

10 Japan 127,288,419

The above graph shows the top ten countries by population number which dipict the market

volume and labor force availability of a country.

3.STOCK MARKET COMPARISION OF BRICs WITH WORLD’S OTHER BIG

MARKET

COMPARISION OF iBOVESPA (INDEX OF BRAZIL) with DOW JONES , NASDAQ

AND S&P FOR 5 YEAR.

COMPARISION OF RTS (INDEX OF RUSSIA) with DOW JONES , NASDAQ AND S&P FOR 5 YEAR.

COMPARISION OF BSE AND NSE (INDEX OF INDIA) with DOW JONES , NASDAQ AND S&P FOR 5 YEAR.

COMPARISION OF SHANGGAI (INDEX OF CHINA) with DOW JONES , NASDAQ AND S&P FOR 5 YEAR.

inflation rate

2.72.4

01.521.7

11.94.7

5.94.1

2.4

US

UKJapan

France

GermanyItaly

Russia

ChinaIndia

Brazil

canada

inflation rate

UNEMPLOYMENT RATE OF BRIC COUNTRIES

Unemployment rate of Brazil

12.3 11.59.8 9.6 9.8

0246

8101214

rate

Unemployment rate of Russia

8.5 8.37.6

6.65.9

0

2

4

6

8

10

2004 2005 2006 2007 2008

rate

Unemployment rate of India

9.5 9.2 8.97.8

7.2

0

2

4

6

8

10

2004 2005 2006 2007 2008

rate

Unemloyment rate of china

10.1 9.89

4.2 4

0

2

4

6

8

10

12

2004 2005 2006 2007 2008

rate

The Graphs above shows unemployment rate of BRICs countries, which indicate tha

unemployment is decreasing per year because opportunities increasing in BRICs it make

clear that economy of BRICs countries developing year by year,

Inflation rate of BRICs and other countries

FACT AND PERFORMANCE OF BRICs:-

Population : The four BRIC markets are the largest economies and have some of the largest

populations among emerging-market countries. Companies from BRIC countries have large-

and-competitive domestic markets, meaning they’re already globally competitive when they

venture abroad. The BRICs boast a combined population of 2.85 billion, around 43 per cent

of the present global total. They are believed to have a combined labor force of around 1.5

billion.

Rapid Growth : China and India have two of the fastest growth rates in the world, and that

looks likely to continue. Other rapidly growing countries are much smaller - and more risky.

Natural Resources: While China and India are the major poles of global manufacturing and

service growth, the two other BRICs - Brazil and Russia - are cornucopia of commodities and

energy, which in the past have been inadequately exploited. The escalating energy and

commodity prices of the last five years have brought rapid growth to both countries, enabling

them to develop active consumer sectors with a multitude of invest able companies.

Access to Capital: Brazil recently achieved an investment grade debt rating from Standard

and Poor’s Inc., giving the Latin American country access to the major global pools of

institutional capital, while also significantly lowering the cost of its debt. Russia has built up

foreign-exchange reserves of more than $400 billion, allowing it to break free of a reliance on

foreign capital. China, with a record $1.68 trillion of foreign exchange reserves, has access to

all the capital it can handle.

India may finally have broken out of the cycle of foreign exchange constraints that had

previously prevented rapid growth: With foreign capital of almost $300 billion invested iWith

foreign reserves of $1.68 trillion, China basically has all the capital it needs for the

development projects it has on the drawing board. Bullish on BrazilAs long as world oil

prices keep increasing, or at least remain high, Russian energy companies will keep

generating record profits

On present estimates, some 74 per cent of the Russian population and 85 per cent of the

Brazilian population are urban dwellers. This is not so in the case of India and China. Urban

dwellers represent 30 per cent and 43 per cent respectively of the total population. However,

this is changing rapidly. It has been estimated that in both China and India, approximately 20

million new people are being added to urban populations each year.

Conclusion

If you’re a global investor looking for global profits - including one potential way to double

your money - you need to "Hit the BRICs."The acronym "BRIC" to stand for Brazil, Russia,

India and China, the four emerging markets the investment bank’s strategists believed would

become a dominant part of the world economy in the years ahead .Brazil, China and India -

feature sound economies with powerful growth rates, and stock markets with reasonable

valuations.

In fact, China and India are two of the fastest-growing investable economies on the planet,

and have been transformed into global leaders in both the manufacturing and service sectors.

At the same time, Brazil and Russia each has become a cornucopia of commodities, and are

emerging as global leaders in the white-hot global energy sector.

Russia has the capacity to represent a 21st-century energy superpower, then Brazil must

surely have the potential to realise the same prominence in agricultural commodities and

other raw materials. Brazil is making its presence felt in key materials and agricultural

product markets.Brazil achieve that status in agricultural and bulk commodity markets

We recognizes that Brazil, Russia, India and China have changed their political systems to

embrace global capitalism. China and India, respectively, to be the dominant global suppliers

of manufactured goods and services while Brazil and Russia would become similarly

dominant as suppliers of raw materials. Thus, the BRICs have the potential to form a

powerful economic bloc to the exclusion of the modern-day states currently of "Group of

Eight" status. Brazil is dominant in soy and iron ore while Russia has enormous supplies of

oil and natural gas. India is making flow of skilled people and making it present in

technology.

BRIC all initiated economic or political reforms to allow their countries to enter the world

economy. In order to compete, these countries have simultaneously stressed education,

foreign investment, domestic consumption, and domestic entrepreneurship. According to the

study, India has the potential to grow the fastest among the four BRIC countries over the next

30 to 50 years. A major reason for this is that the decline in working age population will

happen later for India and Brazil than for Russia and China.

Limitations

This research have following limitations

It is based on secondary data

Statically data has been taken from the CIA factbook which ix last update o second october this year

Some of the data taken 2007 estimation

BIBLIOGRAPHY

www.economywatch.com

www.indexmundi.com

www.financeyahoo.com

www.istockanalyst.com

www.google.com

www.allbussines.com

Goldman sachs reportof 2001

Introduction to the organization

 

Name of the organization:

SNR Securities ( Franchisee of Angel Broking Ltd.)

 

Brief Histiory:

SNR Securities & Finance was established & started excellence in customer relations in year 2000. Today, SNR Securities & Finance has emerged as one of the most respected Stock-Broking and Wealth Management Companies in Central India. With its unique retail-focused stock trading business model, SNR Securities & Finance is committed to providing ‘Real Value for Money’ to all its clients.

The SNR Securities & Finance is a registered with the Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and the two leading Commodity Exchanges in the country: NCDEX & MCX. SNR Securities & Finance is also registered as a Depository Participant with CDSL.

 

Major Operations:

Equity Trading

Commodities

Mutual Funds

Life Insurance

IPO

Depository Services

Investment Advisory

Vision  statement of company:

“To provide best value of money to its investors through its innovative products, trading & investment strategies, state of the art technology & personalized services.”