Urged Brics nations to create predictable business environment: S Jaishankar

India on Friday urged BRICS nations to create a predictable business environment, set up resilient supply chains and link respective payment systems to facilitate trade in local currencies, while Russia proposed to establish a BRICS grain exchange for food security for member countries.Jaishankar proposed “greater self-reliance” for BRICS for higher economic security. (@DrSJaishankar)Delivering a keynote address at the BRICS Business Forum in New Delhi, external affairs minister S Jaishankar said, India chairship’s focus is on resilience, innovation, cooperation, and sustainability among members as these priorities are especially relevant in the current circumstances.“Friends, we meet at a time when global political and economic order is under churn. Volatility, uncertainty, and complexity have become defining features of the world around us. We are witnessing the economic consequences of geopolitical conflicts, of pandemics, and of climate-related disruptions. At the same time, rapid digitisation and technological advances are opening new possibilities for growth, productivity, and development,” he said.Supply chain connectivity and trade facilitation have emerged to be crucial, but so do building robust services, agriculture and agri-technology, digital delivery, micro, small and medium enterprises (MSMEs), startups, and women-led enterprises, he added.Jaishankar proposed “greater self-reliance” for BRICS for higher economic security.“The objective is to strengthen our ability to absorb shocks while remaining connected and competitive,” he said. The minister called for genuine market practices, dependable logistics, predictable business environment, diversified commercial relationships, and transparent trade and investment.“It also calls for energy systems capable of coping with disruption and transition pathways which are suited to different national circumstances,” he added. Technology has always been inseparable from economics and geopolitics, citing digital public infrastructure (DPI), artificial intelligence (AI), fintech, and advanced manufacturing as areas offering major opportunities.Also Read: BRICS Summit India LIVE: China says Modi-Xi meeting being arranged; Iran President headed to IndiaAddressing about 2,000-strong delegates from India and abroad, commerce and industry minister Piyush Goyal said, BRICS represents almost one-fourth of global trade and India is an important pillar of intra-BRICS trade.“We believe trade amongst partners should be deep, resilient with diversified supply chains and ensuring that at no point of time trade becomes an impediment to growth and the well-being of the people of each member state. We should open our markets for each other’s products including for raw materials and critical minerals,” he said.“Our supply chains will be resilient when they run both ways,” he said, urging BRICS members and partner countries to open their markets while working together to simplify regulatory procedures and facilitate faster clearance of consignments. BRICS members are Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia, and the United Arab Emirates (UAE).He stressed on the need to encourage agri-tech startups in BRICS and collaborate in developing solutions for farmers for food security for people. “Let us open our services markets to each other in a real sense. Let professionals move easily across borders and make it easier to recognize each other’s professional qualifications,” he said.Elaborating on India’s significant achievements in laying out a digital public infrastructure (DPI), Goyal said, “In fact, our unified payment interface (UPI) today has over 250 billion transactions a year representing more than half of the transactions by volume across the world.”“Today it is also accepted in 11 countries and I would urge the BRICS member countries and partner countries to link our payment systems, trade, in each other’s local currencies,” he added.Speaking on the occasion, Russian minister of economic development Maxim Reshetnikov said Russia is increasingly using local currency for trade settlements. “Three years ago, the dollar and euro totaled 85% of settlements for Russian exports. The figure now stands at about 11%.”Also Read:Jaishankar flags global uncertainty at BRICS forum: ‘Political and economic order under churn’“An alternative international financial system became our key leverage. Today, it links thousands of banks from many countries, and prospects are even greater. Positive dynamics would not come true without specific mechanisms,” he added.The Russian minister called for joint action in several areas to make long-term solutions and proposed to set up the BRICS grain exchange. “BRICS countries are among the world’s leading producers and consumers. But they still rely on price benchmarks that reflect the interests of entirely different markets,” he said. Russia prepared a detailed plan to establish the BRICS grain exchange. It’s a unified trading platform where producers, traders, and buyers can conclude transactions directly, he said.According to commerce secretary Rajesh Agrawal, trade among BRICS countries has also grown from $84 billion in 2003 to nearly $1.2 trillion in 2024. At the Jaipur’s Trade Ministers’ Meeting on 7th August, members reaffirmed their commitment to preserving and revitalising the multilateral trading system with WTO at its core. “We must strengthen the rules that have supported global trade while ensuring that development remains an integral objective,” he said.He stressed on the need to have an institutional mechanism for traders to access easy and economical credit. “Particular attention must also be given to micro, small and medium enterprises which are at the heart of global value chains. With the global trade finance gap estimated at $2.5 trillion, we should enable exporters to access affordable working capital based on confirmed orders and reliable payment reports.The Jaipur Consensus provides an important foundation for exploring a common BRICS mechanism in this regard,” he added.Minister of state for commerce and industry Jitin Prasada highlighted India’s priority as chairship of BRICS. There are two priorities – to have a balanced trade relationship among BRICS members, and to boost trade in services, particularly in digital services, artificial intelligence, digital public infrastructure (DPI) and data centers, he said. “I firmly believe, the next way forward for our countries and … BRICS Business Forum, is not only the traditional trade but will be digital services,” he added.