|Demand of the question|
Introduction. Contextual Introduction.
Body. Need and significance for boosting intra-BRICS trade for India and how to boost it?
Conclusion. Way forward.
With rising trade disputes, trading arrangements in disarray and questions over the relevance of the World Trade Organization (WTO), the relevance and significance of intra-BRICS trade has increased more than ever. Even at a time when the five countries are heading in different directions politically, they found ways to build a common vision for the world’s economic future with an emphasis on multilateralism and mechanism against unilateral and protectionist actions.
Need and significance for boosting intra-BRICS trade for India:
- BRICS countries together accounts for 42% of the world’s population, a third of the global GDP and around 17% share of world trade. BRICS countries’ can contribute to Indian growth, trade and investment towards making it a $5 trillion economy.
- Structural imbalances caused by the global financial crisis of 2008 and new threats to the global economy posed by trade war and unilateral economic sanctions are yet to be resolved. In such situation it is important for India to increase its trade with BRICS partners to safeguard its interests.
- For India, in particular, given the fact that it faces its own economic crisis, and troubled trading ties with several nations, trade with BRICS nation is important.
- Further BRICS have abundance of resources like energy resources in Far East Asia, mineral resources in South Africa’s, it is important to increase intra-BRICS trade especially for India to fulfill its energy demands and growth.
- The failure of officials to resolve issues in time to join the Regional Comprehensive Economic Partnership (RCEP) need to be balanced through increasing trade with other BRICS countries.
- The growing contribution of the BRICS to the world economy and the rising importance of the economic relations between the BRICS and other Emerging Market and Developing Countries (EMDCs) create an opportunity for new initiatives that would better help to support sustainable and inclusive growth and development in India.
- The BRICS can contribute to poverty reduction in India. Continued BRICS growth remains important for poverty reduction as well as for reducing inequalities.
- 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.
What should be done to boost trade with other BRICS countries:
In order to expand cooperation in trade among BRICS countries, the following goals should be pursued:
- Enhancing consultations and exchanging information on macroeconomic and trade policies.
- Encouraging trade and investment links between BRICS countries with an emphasis on promoting market access on goods and services amongst BRICS countries and supporting industrial complementarities, sustainable development and inclusive growth;
- Simplifying and increasing the efficiency of administrative procedures to facilitate and accelerate mutual trade and investment.
- Improving the transparency of trade and investment climate in the framework of international obligations and national legislation.
- Creatingfavourable conditions for development of mutual trade and foreign direct investment in the BRICS countries in order to diversify production and exports.
In the recent years, developing countries have increasingly emerged as regional and global growth engines, reflecting higher growth in economic activity and trade, as compared to the developed economies. BRICS– the five emerging global powers are incrementally increasing their global engagements. India should reap benefit of this association.