Insights into Editorial: India: world’s most investment-friendly economy, says PM Modi
Context: BRICS Summit 2019:
India is the world’s most “open and investment friendly” economy, Prime Minister Narendra Modi said as he wooed the BRICS business leaders and urged them to invest in the country’s infrastructure development.
BRICS countries account for 50 per cent of the world’s economic growth. Despite the recession in the world, BRICS countries accelerated economic development, brought millions out of poverty and achieved new breakthroughs in technology and innovation.
11th BRICS Summit which will focus on building mechanisms for counter-terrorism cooperation and strengthen India’s ties with the world’s five major economies.
BRICS Summit: The origins, and now:
- On November 30, 2001, Jim O’Neill, a British economist who was then chairman of Goldman Sachs Asset Management, coined the term ‘BRIC’ to describe the four emerging economies of Brazil, Russia, India, and China.
- BRIC on the basis of econometric analyses projecting that the four economies would individually and collectively occupy far greater economic space and become among the world’s largest economies in the next 50 years or so.
- It was agreed to expand BRIC to BRICS with the inclusion of South Africa at the BRICS Foreign Ministers’ meeting in New York in September 2010.
- South Africa attended the third BRICS Summit in Sanya on April 14, 2011. Last year, leaders of the grouping commemorated the 10th anniversary of BRICS in Johannesburg.
- During the sixth BRICS Summit in Fortaleza, Brazil (2014), the leaders signed the Agreement for establishing the New Development Bank (NDB).
PM Modi at BRICS:
BRICS countries together accounts for 42% of the world’s population, a third of the global GDP and around 17% share of world trade.
In the words of our Prime Minister, India a land of limitless opportunities, the prime minister urged the business leaders of the BRICS nations to invest in India, particularly in its infrastructure development.
“India is the world’s most open and investment friendly economy due to political stability, predictable policy and business friendly reforms.
BRICS nations (Brazil, Russia, India, China and South Africa) should also deliberate on mutual social security agreement.
BRICS Summit to focus on trade, digital economy:
India and the other BRICS economies will aim to strengthen cooperation in digital economy, science, technology and innovation.
A BRICS MoU between Trade and Investment Promotion Agencies is expected to be signed at the conclusion of the summit besides the customary joint declaration that will lay out the future roadmap for cooperation among the five countries.
BRICS countries’ sizable contribution to global growth, trade and investment makes it an important pillar of global order
BRICS is an Voice of Developing Nations:
As the western countries are raising challenges on issues ranging from World Trade Organisation to climate change, the developing countries are crippling under the onslaught of these policies.
In recent period, BRICS has emerged as the voice of developing countries, or the global south and playing a significant role in protecting the rights of developing countries.
India is actively pursuing its membership for United Nation Security Council (UNSC) and Nuclear Supplier Group (NSG).
- A key focus of the BRICS summit this year will be on cooperation on countering terrorism.
- The five countries will aim to “build mechanisms for counter-terrorism cooperation within the BRICS framework.”
- The year the BRICS joint working group on counter-terrorism has decided to constitute five sub working groups on counterterrorism in the areas of terrorist financing, use of Internet for terrorist purposes, countering radicalization, issue of foreign terrorist fighters and capacity-building.
- India is expected to be named the chair of the subgroup on use of internet for terrorist purposes.
- The Summit will be an opportunity for India to lay the groundwork for hosting the 2021 Summit scheduled in India.
- The last Summit took place in Goa in 2016. India will also be mindful of the fact that the G20 Summit to be hosted in India will take place in 2022, and this will be an opportunity to synergise the two agendas from New Delhi’s lens as well.
BRICS nations favour idea of common payment system:
Russia and its BRICS peers have been looking for ways to decrease their dependence on the U.S. dollar and have advocated using their national currencies in mutual trade.
The share of the dollar in Russian foreign trade payments has fallen to 50% from 92% over the past few years, while the rouble’s share has risen to 14% from 3%.
An efficient BRICS payment system can encourage payments in national currencies and ensure sustainable payments and investments among our countries, which make up over 20% of the global inflow of foreign direct investment
Five BRICS nations had also discussed creating a common cryptocurrency for mutual payments as the grouping was reducing the share of payments in the U.S. dollar.
BRICS should promote comprehensive development of all states both big and small and enhanced mutually beneficial cooperation among them on the basis of shared interests.
BRICS nations should strive for peaceful and politico-diplomatic settlement of crisis and conflict in various regions of the world.
BRICS, being one of the pillars of the emerging fairer polycentric world order, plays an important stabilising role in global affairs.
Democratization of international issues i.e agreements on global agendas should be reached with the widest and equal participation of all stakeholders and be based on universally recognised legal norms.
The principle of respect for cultural and civilizational diversity of the world should be a top priority.
In the storming ocean of world politics, BRICS can contribute significantly in maintaining international stability and ensuring global economic growth and becoming a united centre of the multipolar world.