PM Modi for financial integration among BRICS countries

Prime Minister Narendra Modi during an expanded meeting of BRICS leaders during the 16th BRICS Summit in Kazan, Russia on October 23, 2024. Photo: brics-russia2024.ru via PTI

India favors greater financial integration among BRICS member countries, Prime Minister Narendra Modi said on Wednesday (October 23, 2024) at the 16th BRICS meeting in Kazan. He outlined India's hardline stance on international terrorism at the BRICS summit plenary session, accusing Israel of being responsible for an unprecedented escalation of violence in the Gaza Strip and expressing concern over the situation in Lebanon.

We welcome efforts to increase financial integration among BRICS countries. Trade in local currency and the fluidity of cross-border payments will strengthen our economic cooperation. The unified payment interface [UPI] The system developed by India is a huge success story and has been adopted in many countries, Modi said, urging more countries to join India in doing business in local currency or payment mechanisms developed locally. The plan to trade in local currencies away from the powerful US dollar has gained support, particularly against the backdrop of Russia's military campaign in Ukraine which has led to Western sanctions against Russia. Reflecting this sentiment, BRICS member countries recognized the widespread benefit of conducting trade in local currencies, saying: “We welcome the use of local currencies in financial transactions between BRICS countries and their trading partners. We encourage the strengthening of correspondent banking networks within BRICS and the possibility of local currency settlements, in line with the BRICS Cross-Border Payments Initiative (BCBPI), which is voluntary and non-binding.

Mr. Modi reiterated that as BRICS becomes more assertive in expressing collective aspirations, they should not attempt to replace other global institutions. As we continue our efforts within BRICS, we must ensure that this organization does not acquire the image of an organization that attempts to replace global institutions, instead of being seen as an organization that seeks reform, he said.

Joint declaration

The 16th BRICS summit, attended for the first time by the leaders of the new member countries Egypt, the United Arab Emirates, Saudi Arabia, Ethiopia and Iran, resulted in a joint declaration, the Kazan Declaration, which summarized the BRICS position on the challenges facing the world, such as the conflicts in Gaza and Ukraine and creating a more responsive international financial architecture.

The joint statement, in a significant move, clearly declared that the Israeli military offensive was responsible for the unprecedented escalation of violence in the Gaza Strip and called for an end to the conflict, saying: “We emphasize the urgent need for an immediate, complete and permanent ceasefire in the Gaza Strip. the Gaza Strip, the immediate and unconditional release of all hostages and detainees on both sides who are illegally held in captivity and the unhindered provision of sustained and large-scale humanitarian assistance to the Gaza Strip, and the cessation of all aggressive actions. The Kazan Declaration further blamed Israel for attacks on humanitarian operations and personnel active in the Gaza Strip. Clearly expressing the BRICS position, the joint statement called for Palestinian membership in the UN and expressed unwavering support for the two-state solution formula to end the Israeli-Palestinian crisis.

The 16th BRICS summit called for an immediate end to Israeli attacks in residential areas of Beirut. Indicating growing international concern over sabotage involving pagers and mobile phones, the BRICS statement condemned the pager attacks in Lebanon and described the September 17 pager attacks as premeditated and a serious violation of international law.