BRICS countries weathered global crisis well: India

Says India and China are poised to enter a new stage of economic engagement

India said today said BRICS nations have demonstrated economic resilience by weathering the global financial crisis rather well and are expected to play central role in post-crisis global economy.

"Comprising more than 40 per cent of the world population, nearly 30 per cent of the land mass, the collective economic power of BRICS nations is demonstrated by the fact that their GDP increased from 16 per cent in 2000 to 25 per cent in 2010," Sumita Dawra, Counsellor of the Economic Affairs of the Indian Embassy here, said while addressing a meeting of BRICs officials.

Economies of Brazil, Russia, India, China and South Africa (collectively called BRICS) have demonstrated economic resilience by weathering the global financial crisis, she said.

BRICS countries had contributed 55 per cent to growth of PPP-adjusted global GDP in 2008, Dawra said.

Though estimates on the future economic power of the BRICS vary, they would be reaching close to 40 per cent of the global GDP, she said quoting a Goldman Sachs report.

Top diplomats and officials of the BRICS countries attended the meeting organised by the China Economic Daily to discuss the challenges before the five members grouping.

"As such there has been shift in global growth engines towards BRICS and Emerging Market Economies," Sumita said.

With in BRICS itself, China and India have been fastest growing economies, accounting for almost 20 per cent of the world GDP in 2010, she said.

Referring to the recent visit of Prime Minister Manmohan Singh here, she said India and China are poised to enter a new stage of economic engagement.

"The two sides also agreed to look into prospects of Regional Trade Arrangement (RTA) and also review the state of negotiations on the Regional Comprehensive Economic Partnership (RECP," she said.

Besides agreeing to expedite the industrial zones, a study group has been established by India and China on the proposed Bangladesh, China, India, Myanmar(BCIM) Economic Corridor, she said.

She also outlined various measures undertaken by India to revive the growth rate which fell to 6.2 per cent last year.

Measures like liberalisation of FDI regime covering retail, aviation, Insurance, broadcasting, deferring General Anti-Avoidance Rules, relaxation of external commercial borrowing guidelines, launch of infrastructure debt fund were expected to reverse the economic slowdown, she said.

Quoting a study report by the Ministers of Finance and central Banks of the BRICS countries, she said, "The emphasis is on strengthening economic links to enable the BRICS economies to collectively play a more central role in the post crisis global economy."

The study had set a strategic agenda for the BRICS countries suggesting intra-BRCS trade and investment through innovative trade financing facilities and export credit arrangements.

Other suggestions included, cooperation in infrastructure funding, pooling of expertise, experience sharing in mass rapid transportation, development strategy for food security and developing greater cooperation in financial markets, she said.

Steven Sabey, a senior policy advisor of the UNDP in China said BRICS' countries growth has been such that it led to a historic shift in 20100-11.

"In that year, for the first time, developing countries contributed more to global GDP growth than developed countries; 51 to 49 per cent- compared to a ratio of 23 to 77 per cent in the 1990s," he said.

"And a majority of the developing country contribution to growth can be traced to just five countries - the BRICS. Thus it is clear that the BRICS, both individually and collectively, are now important forces in the global economy," he said.

"If we look at human development, poverty reduction, and progress toward the Millennium Development Goals, the picture is similar. The BRICS have made an enormous impact, with China alone lifting more than 500 million people out of poverty, ensuring that the world will achieve the goal to halve extreme poverty by 2015," he said.