Six members joining BRICS will have only 11% share in GDP: Report

Mumbai: The six countries going to join the BRICS group of emerging economies from January will account for only 11 per cent of the gross domestic product (GDP). In the report released after an analysis, it has been said that Saudi Arabia will have the maximum share of four percent in this too. According to an analysis by SBI Research, after the inclusion of Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates (UAE) in the five-member BRICS (Brazil, Russia, India, China and South Africa), the global GDP The group’s share will increase to 30 percent from the current 26 percent and the group’s share of the global population will reach 46 percent.

The extension, effective from January 1, 2024, was announced at the recent BRICS meeting in Johannesburg, South Africa. China, which currently accounts for 70 per cent of the BRICS GDP, will come down to 62 per cent on January 1, while India’s GDP share in the grouping will come down to 12 per cent from the current 13 per cent. Russia accounts for eight per cent of the BRICS GDP, Brazil seven per cent and South Africa two per cent.

This together accounts for 26 percent of global GDP. According to the report, Russia’s share will drop to seven per cent after the expansion, South Africa’s will drop to one per cent. However, there will be no change in Brazil’s share. Soumya Kanti Ghosh, Chief Economic Advisor, State Bank of India (SBI), said that among these six economies, the UAE has been India’s largest trading partner with bilateral trade at Rs 6,81,259 crore in FY 2022-23. It is followed by Saudi Arabia (Rs 4,23,834 crore), Egypt (Rs 48,792 crore), Argentina (Rs 39,100 crore), Iran (Rs 18,680 crore) and Ethiopia (Rs 5,154 crore).