The BRICS bloc is an association of five major emerging economies: Brazil, Russia, India, China, and South Africa. This coalition aims to reform global financial structures, support inclusive growth, promote regional trade, and foster South-South cooperation.
Recently, the BRICS bloc has expanded its membership by adding six new countries: Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE. This group is often referred to as BRICS + 6.
Revealed Comparative Advantage (RCA) signifies the potential for increasing bilateral trade based on the inherent strengths and advantages of the involved countries.
India stands to benefit significantly from the expansion of the BRICS bloc. The nation's comparative advantages may lead to increased bilateral trade with the six new member countries.
Indeed, there have been recent positive trends in bilateral trade between India and several of the new BRICS members, particularly Egypt, Saudi Arabia, and the UAE.
India may consider importing various commodities from these new member countries. For instance, potential imports include:
Established by the BRICS countries, the New Development Bank (NDB) aims to mobilize resources for infrastructure and sustainable development projects. It can also provide local currency funding to member nations.
Trading in rupees offers several advantages for BRICS nations, including:
For the future, it is recommended that BRICS nations prioritize greater connectivity and increased inter-group trade. Enhanced cooperation between member nations, particularly India and China, is crucial for various fronts.
The expansion of the BRICS bloc is expected to challenge the dominance of major global currencies like the dollar, euro, and pound sterling in international trade and payments.
For a comprehensive understanding and further insights on the BRICS bloc and its evolving dynamics, consider visiting our website.
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