Modi calls for removal of trade barriers, safety of seafarers at key Brics meeting

Prime Minister Narendra Modi said on Friday that India is building economic bridges through dozens of trade deals while many others are becoming more protectionist, making a strong case for barrier-free trade in the Brics and for freedom of navigation and the safety of seafarers.

Global trade can only accelerate when sea lanes are safe, supply routes are open and seafarers are safe, Modi said at a leaders’ meeting at the Brics Business Forum on the eve of the September 12-13 Brics summit.

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The statement comes amid growing concerns about sailors operating in conflict-affected areas in West Asia. More than 15 sailors, many of them Indian, have been killed in attacks on merchant vessels in and around the Strait of Hormuz since the start of joint US-Israeli strikes on Iran on 28 February.

Quick answers to key questions

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At the BRICS meeting, Modi emphasized the importance of removing trade barriers and promoting barrier-free trade within the BRICS countries to strengthen economic cooperation.

Modi stressed that global trade can only flourish when sea lanes are secure and the safety of seafarers is ensured, especially in light of recent attacks on vessels in conflict zones.

India plans to strengthen trade relations within BRICS by removing trade barriers, mutually supporting at least 100 startups in the other country’s markets and fostering thousands of business partnerships.

Yes, the transition to trading in local currencies is being discussed among BRICS members to improve economic cooperation and mitigate the risks associated with reliance on a limited number of currencies.

India has proposed several initiatives, including the establishment of the BRICS Incubator Network and the Start-Up Innovation Fund, which aim to connect start-ups and small businesses to markets and financial avenues.

As the group enters its third decade of existence, the prime minister called for an annual benchmarking of Brics’ progress against its achievements on three key indicators – removing trade barriers, enabling at least 100 start-ups to grow in their markets and fostering thousands of business relationships within the bloc. He asked business leaders and policy makers in the group to identify the top 10 barriers to intra-group trade and propose solutions.

The prime minister highlighted the growing economic influence of the 11-member grouping, saying that in the bloc’s two decades of existence, gross domestic product (GDP) has grown nearly four and a half times, while the world has grown only about two and a half times. The group now accounts for half the world’s population, 40% of its GDP and a quarter of its trade, he said.

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Innovation pressure

Modi pitched India as a start-up and innovation hub for foreign investors and urged them to create in India, innovate with India on a global scale. The country has more than 2,00,000 start-ups with about 120 unicorns, he said, adding that it is becoming a hub for global solutions.

The Prime Minister highlighted the theme of the last Brics Summit – Building Resilience, Innovation, Cooperation and Sustainability and said that India has already incorporated them in its economic and trade policies. He reaffirmed India’s support for further deepening cooperation between members while highlighting the country’s progress in recent years – from building physical and digital infrastructure to opening avenues for innovation and investment in key sectors, including strategic ones such as defense and space.

“Our approach remains the same – to remove barriers and open up more opportunities for businesses,” he said, highlighting India’s contribution to deepening cooperation in agriculture, health, skills and smart grids. The Brics Incubator Network, the Brics MSME Portal and the Brics Startup Innovation Fund have been created to connect start-ups and small businesses with markets and avenues of finance.

Speaking at the event, Russian President Vladimir Putin said the world is undergoing deep and structural shifts, and the so-called old leaders who used to be the vanguard of economic growth in the second half of the 20th century are being replaced by new engines of growth.

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In his speech, Iranian President Masoud Pezeshkian dwelt on the need to increase Brics trade in local currencies.

Earlier in the day, Modi huddled with Putin as they reaffirmed the two countries’ commitment to further deepen cooperation in political, economic, defense, energy and other sectors. The meeting also covered India-Russia engagement in BRICS and they exchanged views on regional and global issues, including the conflict in West Asia, the Ministry of External Affairs said in a statement.