BRICS IN GLOBAL TRADE: THE EVOLVING ROLE OF SERVICES AND ITS COMPOSITIONS

The trade in services has grown rapidly over the last 20 years, which has improved the BRICS countries' overall economic efficiency. All of the BRICS nations' services trade as a percentage of GDP in 2020 varied from 5.5% (China, Brazil) to roughly 12% (India). Based on balance of payments data, India strengthened its position as a net services exporter between 2000 and 2020. Brazil and the Russian Federation saw a decline in their negative trade balances, while South Africa's position stayed roughly neutral. China, on the other hand, saw a sharp growth in its negative trade balance in commercial services between 2010 and 2018, which only somewhat improved in 2019 and significantly improved in 2020. This paper tries to analyse the sectoral composition and FDI in the services sector for each BRICS nation. The main conclusion drawn from this research is that, in order for the BRICS countries to fully tap into the potential of their services economies, they must concentrate on raising the productivity of these industries. Doing so will enhance trade integration, consumer welfare, downstream productivity, and competitiveness.