Modi, Putin set BRICS stage: 'Deep shifts', new engines of growth, energy security, Pg1

Key Highlights:

• Russian President Vladimir Putin stated that the world is undergoing "deep shifts" with "new engines of growth" replacing "old leaders".
• Putin and Prime Minister Narendra Modi addressed the BRICS business forum in New Delhi.
• Russia committed to contributing to world energy and food security and building reliable logistics routes like the Arctic Transport Corridor and North-South Transport Corridor.
• The BRICS nations' share of global GDP has grown from 17% in 1995 to 35% in 2024, surpassing the G7.
• India is balancing its ties with Western and BRICS countries amidst a changing global economic order.

Detailed Insights:

• Putin's remarks were aimed at the West, which opposes Russia's actions in Ukraine, and at countries continuing business with Russia despite sanctions.
• The crisis in West Asia, including US-Iran exchanges and the partial closure of the Strait of Hormuz, has disrupted supply chains and increased fuel prices.
• Western economic policies include removing countries like Russia and Iran from SWIFT and imposing tariffs, as seen in the US-China trade war and US tariffs on India.
• India and South Africa's request for a waiver of TRIPS Agreement provisions for Covid-19 vaccines was rejected by developed countries, highlighting intellectual property concerns.
• Former RBI Governor Urjit R Patel identified the US as a "hegemonic sanctioner" and suggested BRICS financial architecture and the Asian Infrastructure Investment Bank (AIIB) as risk mitigants.
• BRICS nations have criticized the European Union's Carbon Border Adjustment Mechanism (CBAM) as a trade barrier rather than an environmental measure.

Key Concepts Involved:

• BRICS: An intergovernmental organization comprising Brazil, Russia, India, China, and South Africa, aiming to promote economic cooperation.
• SWIFT: The Society for Worldwide Interbank Financial Telecommunication, a global messaging network used by financial institutions for secure transactions.
• TRIPS Agreement: The Agreement on Trade-Related Aspects of Intellectual Property Rights, administered by the WTO, setting minimum standards for IP protection.
• Carbon Border Adjustment Mechanism (CBAM): A European Union policy imposing a carbon tariff on imports from countries with less stringent climate policies.