India seeks $500-bn BRICS trade by 2020
While a key agreement on setting up a BRICS credit rating agency eluded them, leaders of the five emerging large economies ended their eighth summit with a commitment to strive for greater synergy and higher economic growth.
With Indian and Chinese exports to the West shrinking, Prime Minister Narendra Modicalled for doubling of intra-BRICS trade to $500 billion by 2020.
This was seen as a key to spur growth in BRICS economies, two of which have recorded negative growth. Chinese President Xi Jinping drew attention to “some countries getting more inward looking in their policies… Protectionism is rising and the forces against globalisation are an emerging risk,” he said.
The ‘Goa Declaration’, issued at the end of the summit, welcomed “experts exploring the possibility of setting up an independent BRICS Rating Agency based on market-oriented principles, in order to further strengthen the global governance architecture. However, it was felt that experts should study the proposal further since credit rating agencies need to have credibility,” said Amar Sinha, secretary (economic relations), external affairs ministry.
An important idea that nearly reached fruition was the suggestion that BRICS members should trade in their local currencies. If this happens, trading costs could come down by up to six per cent, according to estimates. (more)
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