The recent BRICS Dialogue hosted by CNN-News18 focused on the significance of the New Development Bank (NDB), commonly referred to as the BRICS Bank, and the potential for the alliance to leverage its growing economic influence into substantial financial power. Established by the BRICS nations, the NDB aims to mobilise resources for infrastructure and sustainable development initiatives in emerging markets, providing an alternative to conventional multilateral financing institutions.

This discussion is particularly timely as BRICS members are increasingly advocating for enhanced intra-group trade and the use of national currencies to reduce dependence on global financial systems. The dialogue reflects a broader strategy among member nations to fortify their collective economic position.

Key Contributions from Other Nations

Meanwhile, at the Bharat Mandapam, Iranian President Masoud Pezeshkian delivered a complementary message during the BRICS Business Forum. Attended by Prime Minister Narendra Modi, Russian President Vladimir Putin, and South African President Cyril Ramaphosa, Pezeshkian emphasised the need for the NDB to enhance its role in funding infrastructure and energy projects, including proposing local-currency credit lines. His remarks also called for robust mechanisms to facilitate trade and manage currency risks within the bloc.

Both discussions share a common theme: the necessity for the NDB to become a more significant player in financing critical projects. Economic cooperation within BRICS is seen as essential for ensuring stability and mutual growth among its members.

Amitabh Kant, former G20 Sherpa, added a more focused perspective on the challenges facing BRICS during his address at the CNN-News18 BRICS Dialogues. He stated that for the NDB to fulfill its potential, it is imperative that China opens its economy to the other member nations.

Amitabh Kant’s Criticism of Trade Imbalance

Kant’s key assertion revolved around the structural imbalance in trade within BRICS. He pointed out that China’s economy predominantly operates as an export-driven entity, suggesting that other member states require improved access to Chinese markets. Specific reference was made to the barriers faced by Indian pharmaceutical companies in exporting their products to China, with Kant labelling these as non-tariff obstacles.

He noted, “China doesn’t allow exports. I mean, look at the BRICS countries. China is only an exporting country. It doesn’t allow imports, even from BRICS countries. India’s drug and pharmaceutical manufacturers find it impossible to export to China because they put up non-tariff barriers. So, if the BRICS Bank has to play a critical role, the Chinese economy has to open up,” which underscores the urgency for reform in trade practices.

This critique aligns with the broader discourse on the diversification of global trade and supply chains, as expressed by ITPO Chairman Javed Ashraf earlier in the dialogue. Ashraf’s comments illuminated the changing dynamics of geopolitical relationships, asserting that countries from South America and Africa are looking towards BRICS as they seek more resilient economic partnerships without having to favour any specific global power.

Additionally, Ashraf highlighted the existing trade disparities between India and Russia, where the scale of imports from Russia significantly outweighs the exports to India. This observation further illustrates the ongoing challenges in establishing more balanced economic relations within the BRICS framework.

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