India is keen on the issue of equal share holding since it doesn't want a repeat of the distortions that have crept into Bretton Woods institutions like IMF, World Bank and the Asian Development Bank in which rich countries like US and Japan have a strangle hold. BRICS – the grouping of Brazil, China, India, Russia and South Africa — accounts for more than a quarter of the world's land mass, 40 percent of its population and a combined GDP of USD 24 trillion.
Modi to press China, Russia for new Development Bank
Ahead of the BRICS Summit on Tuesday in this north eastern coastal city, Modi will meet Chinese President Xi Jinping and Russian President Vladimir Putin on the sidelines to discuss the issue relating to the New Development Bank.
Sources said India's primary goal is equal shareholding for all the members -- Brazil, Russia, India, China and South Africa.
The BRICS Development bank, an idea which was conceived in Delhi in 2012 and approved in Durban last year, is to be set up with an initial corpus of USD 50 billion, with scope for expansion up to USD 100 billion when new members are added.
For the initial USD 50 billion, India wants equal contribution by all the five members of USD 10 billion. This is because India doesn't want the development bank to fall into the ownership pattern of IMF and WB, with a distorted share holding.
The other priority for India is about the presidency of the bank and the name to be given for it. Apparently, India would like it to be called the New Development Bank, an expression used by Modi in his departure statement on Sunday.
"I also look forward to our discussions to further advance intra-BRICS economic cooperation and our collective efforts to advance global economic stability and prosperity.
In particular, I look forward to the successful conclusion of major BRICS initiatives like the New Development Bank and the Contingent Reserve Arrangement, which have seen significant progress since their launch in New Delhi in 2012," Modi said in the statement.
"These initiatives will support growth and stability in BRICS and also benefit other developing countries," he said.
India wants the modalities for the establishment of the bank through a simple route and not a complicated one. It wants to avoid the pitfalls of the Bretton Woods institution of one who pays more calls the tune.
During his meetings with Chinese and Russian Presidents, bilateral issues may also come up but no big ticket items are likely to be decided since it would be a get to know meeting.
He will also discuss the possible outcomes of the summit on other issues like reforms of the UN Security Council and international financial architecture.
Modi’s agenda with China
With China, Modi may discuss the need for maintaining peace and tranquility along the border so that bilateral problems can be resolved in an amicable manner.
Bilateral trade will also come up for discussion with the Chinese leader and India is keen that the present imbalance in trade should be resolved. Modi is also keen on Chinese investment in India.
Modi’s agenda with Russia
In the meeting with Russian leader, the continuance of good relations between the two countries be maintained.
Russia would like India to continue the good trend in ties that was set up by earlier governments.
Russia is also keen to provide technology and is looking for a new site in India for setting up a civil nuclear plant because Haripur in West Bengal is not working out.
Already the nuclear liability issues over Kudankulam plant 3 and 4 units have been resolved.
PM leaves for Brazil to attend BRICS Summit
Prime Minister Narendra Modi left for Brazil this morning to attend the summit. Modi left Berlin this morning for Fortaleza, Brazil after an overnight stopover. Usually, Indian Prime Ministers transit through Frankfurt for further journeys across the Atlantic.
Berlin was preferred to Frankfurt for a transit halt on Germany's request for a possible bilateral meeting with Chancellor Angela Merkel but she flew to Brazil to watch the FIFA World Cup final between Germany and Argentina.
Modi is visiting Brazil at the invitation of Brazilian President Dilma Rousseff to attend the sixth BRICS Summit being held in Fortaleza and Brasilia on 15-16 July.
The BRICS summit theme, "Inclusive Growth; Sustainable Development", will enable India to shape the post-2015 Development Agenda being discussed in the United Nations.
The Prime Minister is accompanied by a high-level delegation that includes Minister of State for Finance Nirmala Sitharaman, National Security Adviser A K Doval, Foreign Secretary Sujatha Singh and Finance Secretary Arvind Mayaram.
Xi, Putin likely to visit India this year
Both Xi and Putin are likely to visit India in September and November-December respectively this year.
While with Xi it will be Modi's first meeting, he has already met Putin on earlier occasions.
BRICS BUILDING UP
The collective strength of the BRICS economies is of great significant for the global economy. The BRICS countries have done commendable job by reducing poverty and giving boost to the global economy.
In turn, the BRICS could become as big as the G7 by 2032, about seven years earlier than we originally believed possible, according to a Goldman Sachs report.
During the 2008 global economic slump, BRICS’ demand helped United States, Europe and Japan in pulling out of crisis.
India is keen on the issue of equal share holding since it doesn't want a repeat of the distortions that have crept into Bretton Woods institutions like IMF, World Bank and the Asian Development Bank in which rich countries like US and Japan have a strangle hold.
BRICS – the grouping of Brazil, China, India, Russia and South Africa — accounts for more than a quarter of the world's land mass, 40 percent of its population and a combined GDP of USD 24 trillion.
India sees steepest output expansion in BRICS since Feb 2013
India figures among four of the fastest emerging markets that posted the highest output since last year, says a report.
According to the SABB/HSBC Emerging Markets Index (EMI), China posted the sharpest increase in output for 15 months, while India saw the steepest expansion since February 2013.
Russian private sector output stabilised, having fallen at the strongest rate in five years in May.
Brazil, however, registered a further flat trend in activity.
SABB/HSBC EMI is a monthly indicator derived from the PMI surveys, indicated stronger output growth across global emerging markets in June.
The EMI posted 52.3, up from 50.6 in May, signalling the sharpest rate of expansion since March 2013.
That said, it remained below its long-run average of 53.8. The pick-up in output growth was reflected in both manufacturing and services, most notably the latter where activity growth hit a 15-month high.
Stronger output growth reflected the fastest increase in new orders since March 2013.
Meanwhile, the level of outstanding business was unchanged, following a five-month decline.
Inflationary pressures remained subdued in June, despite input price inflation reaching a four-month high. Prices charged for finished goods and services continued to rise only fractionally.
South African private sector companies reported further declines in both output and new orders, with the rates of contraction accelerating slightly since the previous month. Companies reported that mining strikes remained one of the main factors weighing on private sector demand.