As you know BRIC has been coined by Goldman Sachs in their report on Emerging Economies of Brazil, Russia, India and China. In their first report they predicted over the next 50 years, the BRICs economies could become a much larger force in the world economy. They map out GDP growth, income per capita and currency movements in the BRICs economies until 2050.

The results are startling. At the projected pace, in less than 40 years, the BRICs economies together could be larger than the G6 in US dollar terms. By 2025, they could account for more than half the size of the G6. Of the current G6, only the US and Japan may be among the six largest economies in US dollar terms in 2050. The list of the world’s ten largest economies may look quite different in 2050. The largest economies in the world (by GDP) may no longer be the richest (by income per capita), making strategic choices for firms more complex.

It is unprecedented in these countries in terms of Consumption, Productivity gains, Economies of Scale, Infrastructure Development pace, …The clear opportunity is definitely in the bottom of the pyramid.While China leads on Cost Innovation (which is high tech products with volume manufacturing ability) India leads on business process and IT outsourcing and its human capital. Brazil and Russia too have their engines on energy, commodities,…Their currencies have already appreciated and is expected to appreciate even further by 300%.

Though the opportunity is clear these countries do face challenges. All depends on their political stability, economic reforms, liberalization of financial sector, judicial reforms, investment in human capital.

It is interesting for us in BRICwire to bring the happenings and actions of the emerging giants.