Abstract
Since late 1990s, the economies of developed nations, especially G7 group of nations started to collapse, followed by failure of long-term capital management, where the Russian economic crisis has started to affect the entire Asian continent. The need for stronger groups was felt from developing economies to counter the western economic sovereignty which resulted in the formation of BRICS (a group of five different nations – Brazil, Russia, India, China and South Africa). This has provided the Indian economy a major boost. The paper analyses the post-BRICS impact on Indian trade and the impact of major macro-variables on it. Among various macro-variables, only the GDP and inflation rate were found impacting the Indian trade with other members of BRICS nations.
Keywords: GDP, Inflation, FDI, Exchange Rate, BRICS, Export, Import, India
Introduction
In 2001, Jim O Niel from Goldman Sachs proposed a term “BRIC” (Brazil, Russia, India, China); since then, the acronym has been flagged across the boards which utilizes and possibly denotes a move in worldwide monetary power far from the created G8 economies (a group of 8 commercially vast nations consisting of Canada, France, Germany, Italy, Japan, Russia, The United Kingdom and The United States). Goldman Sachs stated that the four BRIC nations were growing quickly and by 2050, their combined GDP could overshadow the consolidated economies of the current wealthiest nations of the world. These four nations, jointly, represent more than one-fourth of the world’s land mass, forty percent of the world’s population (which is half of the total population living in all developing countries), and have a consolidated GDP (PPP) of US$ 21 trillion in 2011 (Gupta, 2015). Practically, they are in line to be the biggest gathering on the worldwide stage.