October 24, 2024
Modi warns BRICS not to replace but reform global institutions, emphasising a cooperative approach
BRICS issued the Kazan Declaration, highlighting global conflicts and calling for a ceasefire in Gaza
Russian President Putin praised India's economic growth, citing it as an example for BRICS nations
The summit was attended for the first time by new members Egypt, the UAE, Saudi Arabia, Ethiopia, and Iran
India reinforced its commitment to financial integration within BRICS, with Prime Minister Narendra Modi advocating for trade in local currencies during the 16th BRICS summit in Kazan. Modi reiterated that India’s Unified Payments Interface (UPI) has already proven to be a successful model adopted by several countries, encouraging more BRICS members to explore trading in local currencies. This initiative, backed by the BRICS Cross-Border Payments Initiative (BCBPI), reflects the desire to reduce reliance on the US dollar, especially in light of Western sanctions against Russia following the Ukraine conflict.
At the summit, Modi acknowledged BRICS’ rising influence but urged caution, stressing that the group should not attempt to replace existing global institutions but work towards reforming them. He underscored the need for BRICS to act as a constructive force within the global order, not an alternative.
The summit was attended for the first time by new members Egypt, the UAE, Saudi Arabia, Ethiopia, and Iran, who issued the Kazan Declaration, outlining the group’s stance on global conflicts. The declaration placed blame on Israel for the recent escalation of violence in the Gaza Strip and called for an immediate and permanent ceasefire. It also pushed for the release of hostages and the uninterrupted flow of humanitarian aid to the region. BRICS reaffirmed its support for Palestine’s UN membership and the two-state solution to resolve the Israeli-Palestinian conflict.
Russian President Vladimir Putin, speaking at the summit, commended India’s impressive economic growth, citing its 7.5% growth rate as an inspiration for other BRICS nations. He also highlighted the strong trade ties between Russia and India, noting a record bilateral trade turnover of US$ 56.8 billion last year, driven largely by oil supplies. Trade between the two countries increased by 9% in January-August 2024.
In a related development, the International Monetary Fund (IMF) confirmed that India remains the fastest-growing major economy in the world, with a projected growth rate of 7% in FY24-25. The IMF highlighted India’s strong macroeconomic fundamentals and a positive rural consumption outlook driven by favourable harvests. Inflation is expected to decline to 4.4% despite some volatility due to fluctuating food prices.
Source: Business Standard and The Hindu