The BRICS group defines the emerging nations with the greatest potential for economic growth in the world, comprising Brazil, Russia, India, China and South Africa. Within this group, India deserves to be highlighted for the production of manufactures - albeit to a lesser extent than the Chinese - and mainly due to the development of the service sector, from the most specialized and that require greater qualification of the hand of work until the callcenters, where fluency in the English language is the greatest requirement for this job.
India has a population of over 1.3 billion people and was the country that contributed the most to the world population growth in recent years (with an average annual growth of 16 million population). In 2030, it should become the most populous country in the world, mainly because it does not have a birth policy and because the country's predominant culture is related to Hinduism, which considers births sacred due to the belief in reincarnations: restricting a birth is understood as limiting the spiritual evolution of a soul.
In a scenario of more advanced aging in Europe, Japan and in progress in several other locations, this characteristic may favor India, maintaining a huge workforce and enabling the strengthening of a domestic consumer market, as the Indian middle class has already surpassed the 200 million mark. people. But the same aspect that can produce growth also poses a challenge for the government of India, as the country still has very low social indicators, with the worst incomeper capita among the BRICS, just over $1,500. Furthermore, India is the only member of the group that cannot yet be considered urban, with a huge contingent of inhabitants living in the countryside, something around 70% of the total population.
One of India's areas of assertion on the world stage is the technology industry. It is one of the best placed countries in the world ranking of the main technological companies due to the quality of its universities and the training given in this segment. The Bangalore region to the south is known worldwide as the Silicon Valley of India, a nod to the largest center US technology developer located outside the city of San Francisco, in the state of California. With an economic growth rate that, in average annual terms, should be around 6 to 8% in the coming years, there is no doubt on the relevance of India in the world context, despite the decrease of the 8% to 9% growth peaks that occurred in the years above.
Amidst the domestic and global liquidity crisis, the dependence on low value-added exports, combined with a large consumption base and the high proportion of jobs (two thirds) and income (half) from rural areas, consumption in the country has maintained a high level. stable. Credit is largely channeled through domestic banks, especially state banks, which have been offering loans at low interest rates. Exports held up despite repercussions on employment and consumer spending. The correction in oil prices and large foreign exchange reserves helped the country to resist capital outflows in 2008. The high return on real estate and infrastructure boosted capital inflows.
Julio César Lázaro da Silva
Brazil School Collaborator
Graduated in Geography from Universidade Estadual Paulista - UNESP
Master in Human Geography from Universidade Estadual Paulista - UNESP
Source: Brazil School - https://brasilescola.uol.com.br/geografia/o-papel-India-no-grupo-dos-brics.htm