What Is The Importance Of BRICS Trade

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LITERATURE REVIEW
Sun and Heshmati (2010) discussed the role of international trade in expansion of china economic growth. The trade policy and regime is in favor of international trade, which increase the productivity of a country. The result shows the increasing in the global trade help the country in static and dynamics benefits and rapid increase in the nation’s economic growth. They also indicate the increasing effects on china’s regional productivity.
Sadhukhan and Singh (2011) demonstrated the phenomenal growth in intra BRICS trade on the basis of three issues i.e. Intra BRICS trade sustainability, substitutability and complementarily of products and technological collaboration. The studies show that there is potential in the BRICS
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BRICS has its own significance in terms of their various resources such as geographical location, availability of natural resources, an alliance between the nations with 43% of the world population and transcontinental cooperation. The goal and objective of this group is to promote peace, security and development in this complex, globalized world with the help of multipolar trade and interconnections. The BRICS nations represent Africa, Asia, Latin America and Europe, which are valuable for covering and capturing the world through International Trade. When the product reaches to these places that mean it entered to the continental boundaries and gradually occupy other part of the area. In developing economies, international trade openness could mean that to reduce the narrowness of domestic market and facilitate with a surplus of goods and services for the domestic requirements (Myint, 1958). Within the context of Make in India Initiative, India needs surplus resources at the level of investment or production and also need the potential market for the consumption of producing goods. All there economic activities can be availed by International trade of India with other BRICS countries. Trade relations between these countries have shown the significant rise during the one and half …show more content…
Gradually, trade was increased in subsequent next four years but trade deficits were still there. In 2005, export rose from $6.16 billion to $10.26 billion and hence the balance of trade was also increased in negative $5.51 billion. In the next 5 fiscal years, exports increases gradually but there was a shoot up in imports and increasing by $10 billion, approximately which lead to rise in trade deficits of $8.73 billion to $28.82 billion. In 2010, South Africa joined the BRICs alliance and changes to BRICS nations. The export was $26.15 billion and import was $54.97 billion, both were increased more than previous years because there was inclusion of South Africa for economic cooperation and relations. In next year, there was a more increment in import as compare to export which creates more trade deficits of $44.28 billion as compare to 2010 fiscal year and also reported maximum deficit during one and half decade.. It shows an inadequate trade balance of India’s trade because it increases the burden of importing the products from the BRICS nation for the fulfillment of needs and requirement of the nation. In the same line, trade situation was at increasing rate, which also reduces trade

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