Revive growth before global woes grip, Sharma to BRICS

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SME Times News Bureau | 27 Mar, 2012
Ahead of the fourth BRICS summit in New Delhi on Thursday, Union Minister of Commerce Industry and Textiles Anand Sharma cautioned the member-countries from the block to focus on reviving growth before the current global economic uncertainties worsen further.

"While the new risks to global economy emanating from euro zone debt crisis and uncertainty in global energy markets will have their impact upon economic growth in the BRICS countries, I am confident BRICS countries will continue to register strong growth," Sharma said.

A day before the summit, trade ministers of the five BRICS nations will meet for the Second Trade Ministers Meeting on Wednesday. A number of new areas for deepening intra-BRICS cooperation are expected to be discussed at the meeting and the recommendations of the ministers would feed into the Summit on March 29.

The visiting five trade ministers are expected to jointly inaugurate the Business Forum that is being organized jointly by the three major India Chambers of Commerce and Industry ASSOCHAM, CII and FICCI). Over 500 business leaders from the five countries are expected to attend this forum.

Elaborating on the growing momentum of BRICS cooperation Sharma further stated, "There is a large untapped growth potential of intra-BRICS trade and investments which we are presently focusing on for exploitation. BRICS Development Banks are in the advance stages of concluding Agreements on Extending Credit Facility in Local Currencies, and Multilateral Letter of Credit Confirmation Facility Agreement to facilitate further consolidation of trade and investment ties."

The minister added that such intra-BRICS initiatives will not only contribute to enhanced intra-BRICS trade and investments but also facilitate economic growth in difficult economic times.

As per UNCTAD data the share of BRICS economies in the global Trade has been increasing over the years. In 2010 it stood at 15 per cent up from 13.7 per cent the year before. In 2010-11 India had total trade worth USD 7519 million with Brazil. During the same period trade with Russia was USD 5179 million, with China USD 63095 million and with South Africa USD 11,125 million.

The last BRICS Summit was held in Sanya, China, and A Framework Agreement on 'Financial Cooperation within the BRICS Interbank Cooperation Mechanism' was signed. The agreement envisages extending Line of credits in local currencies. An MoU was also signed at the Business Forum in Sanya establishing permanent business contact points.

A Plan of Action was also endorsed at the summit to strengthen cooperation among BRICS countries in areas of security, finance, business links, agriculture, health, culture, sports, science and technology and green economy. The Delhi Summit is to build on these measures.

BRICS is an international political organisation of leading emerging economies, arising out of the inclusion of South Africa into the BRIC group in 2010. At present, its five members are Brazil, Russia, India, China and South Africa.