India and China’s Growing Influence in the BRICS+ Alliance
The global economic landscape is undergoing a transformation as countries like India and China gain influence, shifting focus from the G7 nations to the BRICS alliance. A recent report by EY India highlights this shift in global trade dynamics, with the BRICS+ group rapidly increasing its share in global exports and imports.
Key Players: India and China
India and China are central to this transformation. In 2023, they ranked third and first globally in terms of purchasing power parity (PPP) and are expected to maintain these positions by 2030. The BRICS+ group’s share of global merchandise exports surged from 10.7% in 2000 to 23.3% in 2023, while the G7’s share declined from 45.1% to 28.9%.
Future Projections
According to DK Srivastava, Chief Policy Advisor at EY India, the BRICS+ group’s share in global merchandise exports could surpass the G7 by 2026. China’s contribution to BRICS+ exports rose from 36.1% in 2000 to 62.5% in 2023, while India accounted for 7.9% of BRICS+ exports this year.
High-Tech Exports and Currency Shifts
The report also notes the growing importance of high-tech exports from BRICS+ nations, with their share rising from 5.0% in 2000 to 32.8% in 2022. Additionally, the US dollar’s share as a global reserve currency has decreased from 71.5% in 2000 to 58.2% in 2024, suggesting a shift towards a more multipolar currency system.
Doubts Revealed
BRICS -: BRICS is a group of five countries: Brazil, Russia, India, China, and South Africa. They work together to improve their economies and have more influence in the world.
G7 -: G7 is a group of seven wealthy countries: Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. They meet to discuss and solve global economic problems.
EY India -: EY India is a part of Ernst & Young, a big company that helps businesses with things like taxes and finances. They provide reports and insights about the economy.
Global exports -: Global exports are goods and services that countries sell to other countries. It’s like when India sells spices or software to other countries.
High-tech exports -: High-tech exports are products that use advanced technology, like computers and smartphones. These are important for modern economies.
Global reserve currency -: A global reserve currency is money that countries keep in large amounts to trade with each other. The US dollar has been the main one for a long time.
Multipolar currency system -: A multipolar currency system means that instead of one main currency like the US dollar, there are several important currencies used for global trade.