BRICS Summit 2017:

The BRICS Summit in Xiamen, China this September saw the influx of a lot of ideas for the
economic development of the nations under purview.

 The Prime Minister of India, Narendra Modi solicited for a strong alliance among the
member nations to provide an impetus to the growth, as he felt that the bloc has
formed a sturdy set-up for collaboration and contributed to the steadiness of a world
that is meandering towards vacillation. During the plenary session, he remarked that
commerce and economy were the cornerstones of collaboration among the BRICS
nations and called for the formation of a BRICS rating agency to handle the financial
needs of the sovereign and corporate establishments of the developing countries.
 The Chinese President, Xi Jinping implored the BRICS countries to make the
international order more equitable, advocating that many urgent global issues cannot
be resolved efficiently without their contribution. At the very commencement of the
plenary session, Xi requested the five-nation group to collaborate so as to provide
solutions for maintaining international peace and progress of the nations.
 India is metamorphosing into one of the most open economies in the world, with
improved global indices. The most significant ever reform, GST transformed the
nation into one unified market. The PM pitched the Goods and Services Tax (GST)
as a measure that helped in bringing together more than a dozen taxes under one
umbrella, valid from 1st July, in what he termed as India’s most impactful economic
reform ever.
GST is projected to enhance the economic activity by improving the ease of doing
business and facilitating the smooth movement of goods and services. The prime
minister also highlighted the introduction of schemes like Digital India, Start-Up India
and Make in India that is revolutionizing the economic scenario of the country by
turning the Indian society into a knowledge-based, skill-supported and technology-
driven one.
 By emphasizing on the fact that inexpensive and sustainable access to energy is of
great importance to the growth of the BRICS nations, the PM called on the member
nations to work in close proximity with the International Solar Alliance solidify the
solar energy agenda. He also made a note of the fact that resilience in climate
development calls upon the nations to make use of every possible resource avenue.
The ISA was implemented by the joint efforts of India and France in November 2015
and focuses on bringing together a combination of 121 countries for mutual benefits
by utilizing enhanced solar energy. The PM said the New Development Bank under
BRICS grouping could help establish a useful connection with ISA to support this
mission.
 The PM also met with the Russian President Vladimir Putin and discussed ways for
enhancing bilateral commerce and investment, along with the security conditions in
Afghanistan.
The two leaders were believed to have discussed ways to further boost bilateral
cooperation, especially in areas like defense, security, and trade.
 The two sides mainly touched upon several facets of the bilateral relationship.
President Putin recalled PM Modi’s visit to Russia earlier this year and thanked him
for India’s high-level involvement at the Eastern Economic Forum.
Several bilateral issues were brought into the discussion like the collaboration in the
oil and natural gas sector. The two leaders tried to figure out how they could work
hand-in-hand for the proliferation of trade and investment. Cultural exchanges were
also given a thought. The promotion of tourism between the two nations along the
student exchange programmes was considered.
 PM Narendra Modi met the Brazilian President Michel Temer and discussed an
alliance based on a “common global vision” & shared democratic values.
 PM Modi strongly vouched for establishing a BRICS credit rating agency to counter
western rating institutions and see to the financial needs of sovereign and corporate
entities of developing nations. He said a distinctive rating agency would help in
looking into the state-of-affairs of the economies of the member nations as well as
other developing countries.
India had at first mooted the idea of having such an agency for the BRICS group
which can remove obstacles in the path of the emerging market economies posed by
the present CRA market, dominated today by S&P, Moody’s and Fitch. These 3
western rating agencies have managed to capture over 90% of the sovereign rating
market now.
The Indian officials were in the limelight in last year’s BRICS Summit in Goa when it
came to pinpointing the cons of the present system and the necessity of having a
credit rating agency.
 The PM said a robust partnership among member nations with regards to innovation
and the digital economy could help boost growth, focus on transparency and
promote the sustainable development goals. He also implored central banks of
member nations to fortify their capabilities further and encouraged cooperation
between the Contingent Reserve Arrangement of the 5-nation group and the
International Monetary Fund.
 As mentioned by Xi Jinping, China will contribute $76 million for a BRICS
cooperation plan in the economic and technology front . It would invest another $4
million to help boost the projects of the bloc’s New Development Bank. Xi said the
BRICS countries should make globalization of the economy open and inclusive, as it
would be beneficial to all.
BRICS is interested in redesigning the financial architecture of the world, and the Summit
at Xiamen will help develop new approaches to increase its influential role in the IMF
and World Bank. The proliferation of the New Development Bank stands as a testimony
to this fact.

 It has started implementing its long-term strategy by opening its branch office in
Johannesburg. It is scheduled to open more such branch offices in the other BRICS
countries.
  The NDB has already disbursed $1.5 billion in the first 7 credit lines for all BRICS
nations and intends to shell out another $2.5 to 3 billion this year for different projects
 The Summit helped defend the bloc’s stand on the implementation of WTO rules, its
outlook against protectionism and economic inequity, helped deter any attempts to
downgrade the ratings of BRICS nations and push for sanctions.

References:
http://www.livemint.com/Politics/c1qgfg8lf75cgZKJJCzsAO/PM-Modi-seeks-strong-
partnership-among-Brics-nations-to-spur.html
http://thebricspost.com/a-brighter-future-for-brics/#.WidB7UqWbIU