 "Source: AIR Twitter handle")
The eighth BRICS Summit, to be held in Goa over the weekend, faces a challenge in increasing trade among member-states, with nearly all the members experiencing a slowdown in economic growth.
The meeting will see efforts to reach a consensus on issues such as the situation in Syria and a resolve to combat terrorism, but the primarily economic grouping is struggling to reach a consensus on the proposed BRICS free-trade agreement (FTA). Fears of Chinese goods flooding the markets has meant that a consensus has eluded the group on Beijing’s suggestion for a BRICS FTA.
On Thursday, the Chinese state-run Global Times ran an article that called upon BRICS member countries to agree to making the bloc a free-trade area. Given the reservations expressed by other members, particularly South Africa, the Chinese are unlikely to push for their “informal” suggestion.
The BRICS — originally comprising Brazil, Russia, India and China, with South Africa joining the grouping in 2010 — held its first formal summit in 2009. Its objectives were reforms of the Bretton Woods institutions, and prioritising of development goals, like infrastructure development and poverty eradication. BRICS countries account for 40 per cent of the world’s population, and a fourth of its economy, with a combined gross domestic product of nearly $17 trillion.
One of the key achievements of the grouping was to set up a BRICS Bank in 2014 as an alternative to the International Monetary Fund.
The meeting will see efforts to reach a consensus on issues such as the situation in Syria and a resolve to combat terrorism, but the primarily economic grouping is struggling to reach a consensus on the proposed BRICS free-trade agreement (FTA). Fears of Chinese goods flooding the markets has meant that a consensus has eluded the group on Beijing’s suggestion for a BRICS FTA.
On Thursday, the Chinese state-run Global Times ran an article that called upon BRICS member countries to agree to making the bloc a free-trade area. Given the reservations expressed by other members, particularly South Africa, the Chinese are unlikely to push for their “informal” suggestion.
The BRICS — originally comprising Brazil, Russia, India and China, with South Africa joining the grouping in 2010 — held its first formal summit in 2009. Its objectives were reforms of the Bretton Woods institutions, and prioritising of development goals, like infrastructure development and poverty eradication. BRICS countries account for 40 per cent of the world’s population, and a fourth of its economy, with a combined gross domestic product of nearly $17 trillion.
One of the key achievements of the grouping was to set up a BRICS Bank in 2014 as an alternative to the International Monetary Fund.
Sources said the member countries could take steps to strengthen economic cooperation and bolster intra-BRICs trade. This could include promoting trade facilitation, including a relaxed visa regime for business travellers and reducing non-tariff barriers.
On the sidelines of BRICS, Prime Minister Narendra Modi is scheduled to have as many as 10 bilateral meetings with the visiting leaders. The key meetings will be the India-Russia annual summit and also Modi's meeting with Chinese President Xi Jinping. He will also meet the leaders of BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Economic Cooperation), which has Nepal, Thailand, Sri Lanka, Bangladesh, Bhutan and Myanmar as its members.
The India-Russia annual summit is likely to see signing of several agreements, including on arms purchases, and strengthening of their bilateral civil nuclear cooperation.
