Modi Calls For Removal Of Trade Barriers, Safety Of Seafarers At Key Brics Meet

(MENAFN- Live Mint) Prime Minister Narendra Modi on Friday said India is building economic bridges through dozens of trade agreements while many others turn more protectionist, making a strong case for barrier-free trade within Brics and for the freedom of navigation and safety of seafarers.

Global trade can accelerate only when sea lanes are secure, supply routes remain open, and seafarers are safe, Modi said at the Leaders' Session of the Brics Business Forum on the eve of the Brics Summit on 12-13 September.

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The statement comes amid growing concerns over seafarers operating in areas hit by the West Asia conflict. More than 15 seafarers, many of them Indians, have been killed in attacks on merchant vessels in and around the Strait of Hormuz since the US-Israeli joint strikes on Iran started on 28 February.

Quick answers to key questions

.5 QUESTIONS1What did Modi emphasize regarding trade at the BRICS meet?⌵

At the BRICS meet, Modi emphasized the importance of removing trade barriers and fostering barrier-free trade within the BRICS nations to enhance economic cooperation.

2Why is the safety of seafarers a priority in Modi's call for free trade?⌵

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

3How is India planning to strengthen trade relations within BRICS?⌵

India plans to strengthen trade relations within BRICS by removing trade hurdles, promoting at least 100 startups in each other's markets, and fostering thousands of business partnerships.

4Should BRICS countries transition to trade in local currencies?⌵

Yes, transitioning to trade in local currencies is being discussed among BRICS members to enhance economic collaboration and mitigate risks associated with reliance on a limited number of currencies.

5What initiatives has India proposed for small businesses within BRICS?⌵

India has proposed several initiatives, including the establishment of a BRICS incubator network and a start-up innovation fund, aimed at linking startups and small businesses with markets and financial avenues.

As the group enters its third decade of existence, the Prime Minister called for annual benchmarking of Brics' progress against its achievements in three crucial indicators--removing trade hurdles, allowing at least 100 start-ups to scale up in each other's markets and fostering thousands of business tie-ups within the bloc. He requested that the group's business leaders and policy-makers identify the top 10 hurdles in intra-group commerce and suggest solutions.

The Prime Minister highlighted the growing economic clout of the 11-member grouping, noting that during its two decades of existence, the bloc's gross domestic product (GDP) has grown almost four and a half times, while the world grew only about two and a half times. The group now accounts for half of the world's population, 40% of its GDP and a quarter of its trade, he said.

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Modi pitched India as a start-up and innovation hub to foreign investors, exhorting them to make in India, innovate with India with scale for the world. The country has well over 2,00,000 start-ups with about 120 unicorns, he said, adding it's becoming a hub for global solutions.

Highlighting the latest Brics summit's theme of Building for Resilience, Innovation, Cooperation and Sustainability, the Prime Minister said India has already built these into its economic and trade policies. He affirmed India's support to further deepen cooperation among members while highlighting the country's progress in recent years -- from building both physical and digital infrastructure to opening avenues for innovation and investments in key sectors, including strategic ones such as defence and space.

"Our approach remains the same -- to remove barriers and make more opportunities available for businesses," he said, stressing India's contribution to furthering cooperation in agriculture, health, skill and smart-grid. To link startups and small businesses to markets and avenues of finances, the Brics incubator network, the Brics MSME portal and the Brics start-up innovation fund have been created, he said.

Speaking at the event, Russian President Vladimir Putin said the world is undergoing deep and structural shifts, and the so-called old leaders, which 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 raise Brics trade in local currencies.

Earlier in the day, Modi huddled with Putin, as they reaffirmed the two countries' bid to further deepen cooperation in political, economic, defence, energy and other sectors. The meeting also covered the India-Russia engagement in Brics and exchanged views on regional and global issues, including the West Asia conflict, the external affairs ministry said in a statement.

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