India hosts meeting of “BRICS finance and central bank Meeting” 2021
On April 6, 2021, India hosted a Meeting of BRICS Finance Ministers and Central Bank Governors virtually. The meeting was jointly Chaired by Union Minister for Finance & Corporate Affairs, Smt. Nirmala Sitharaman and Governor, Reserve Bank of India, Shri. Shaktikanta Das. Participants included Finance Ministers and Central Bank Governors of the BRICS countries.
What is BRICS?
The “BRICS” is the acronym coined to associate five major emerging economies: Brazil, Russia, India, China, and South Africa. The BRICS members are known for their significant influence on regional affairs. Since 2009, the governments of the BRICS states have met annually at formal summits.
What is the Importance of BRICS?
BRICS is an important Grouping bringing together the major emerging economies from the world, comprising 42% of the world population, having 23% of the world GDP and over 16% share in the world trade. BRICS countries have been the main engines of global economic growth over the years.
Significance of BRICS to India
- BRICS provides a platform for India to galvanize its efforts against terrorism and has worked within the grouping to take a strong stand against terrorism and bring about focused consultations on specific aspects relating to terrorism.
- Global geopolitics today represents the case of a tug of war and India finds itself in the middle of it. This has made difficult for India to carve a middle path for balancing its strategic interests between the U.S and the Russia-China axis.
- BRICS countries shared a common objective of reforming the international financial and monetary system, with a strong desire to build a more just, and balanced international order to this end, BRICS community plays an important role in the G20, in shaping global economic policies and promoting financial stability.
- India is actively pursuing its membership for United Nation Security Council (UNSC) and Nuclear Supplier Group (NSG). China forms the major roadblock in pursuing such goals. Therefore, BRICS provides an opportunity to actively engage with China and resolve the mutual disputes. It also helps in garnering support of other partner countries.
BRICS Finance and the central bank Meeting
- As 2021 BRICS Chair, India’s approach is focused on strengthening intra-BRICS cooperation based on Continuity, Consolidation and Consensus. It was the first meeting on the BRICS Financial Cooperation held under India’s Chair.
- The meeting was co-chaired by the Secretary, Department of economic affairs, Ministry of finance, and Deputy governor, Reserve Bank of India(RBI).
- Other participants in the meeting included BRICS finance and central bank deputies of Brazil, Russia, China and South Africa.
- India has assumed the chairmanship for BRICS in 2021. It is the year in which BRICS is celebrating its 15th anniversary.
Issues discussed during the meeting
- Global Economic Outlook and Response to COVID-19
- Social Infrastructure Financing and Use of Digital Technologies
- New Development Bank(NDB) Activities
- Fintech for SME and Financial Inclusion
- BRICS Contingent Reserve Arrangement (CRA)
