Strengthening Global Economy: India-China Partnership in BRICS+6

India must work with BRICS countries to address cross-border terrorism with China

State Bank of India (SBI) sheds light on the strategic partnership between India and China within the framework of the BRICS group, emphasizing its potential to bolster the global economy. The report underscores the imperative for India to continue engaging with its fellow BRICS nations to address a critical concern – cross-border terrorism. This dialogue and collaboration are pivotal for maintaining stability and security in the region.

The SBI report identifies key areas where India and China can enhance their cooperation. One significant facet is the sharing of data concerning rivers, with specific mention of the Brahmaputra. This data exchange can lead to better water management, fostering cooperation and understanding between the two nations. Another highlighted opportunity lies in the entry of Indian pharmaceutical companies into the Chinese market. This move can not only stimulate economic growth but also foster better relations between the two Asian giants.

BRICS Meeting

The significance of this partnership extends beyond bilateral matters. The recent decision to expand the BRICS group, as announced by South African President Cyril Ramaphosa, paves the way for the inclusion of six new countries. Among these prospective members – Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates—the report sees a potential injection of fresh energy and direction into the group. This expansion, scheduled for January 1, 2024, holds the promise of diversifying and enriching the collaborative dynamics within BRICS.

The SBI report takes note of India’s growing prominence on the global stage. It underscores India’s success in various domains, including effective leadership in the G20, achievements in the field of digital public goods, and the remarkable technological prowess of its workforce. These factors position India as an intellectual leader, distinctively advantageous compared to China and Russia within the bloc.

However, the report also observes that China is grappling with economic challenges. Dwindling exports and imports, coupled with disruptions in the property markets, have impacted China’s economic landscape. The woes of prominent companies like Evergrande and Country Garden have raised concerns about broader economic implications. The surge in unemployment rates, believed to be higher than officially reported figures, adds to these economic strains. The phenomenon of ‘lying flat,’ where many young individuals opt for a minimalist lifestyle, contributes to the intricate economic landscape.

Amidst these challenges, the SBI report underscores the potential of strong partnerships among BRICS nations in driving innovation and the digital economy. Collaboration in these areas can fuel economic growth, promote transparency, and contribute to sustainable development goals.

From a trade perspective, the report envisions favourable outcomes for the Indian rupee. Collaborative efforts with trade partners such as Russia, Saudi Arabia, Egypt, and the UAE hold promise for enhancing India’s trade position. The recent decision by the Reserve Bank of India (RBI) to allow banks to open Special Rupee Vostro Accounts (SRVAs) with partner banks from 22 countries aligns with this vision. These measures can lead to reduced transaction costs, greater price transparency, quicker settlement times, and an overall boost to international trade.

In conclusion, the SBI report underscores the potential for an India-China partnership to contribute significantly to the global economy through the BRICS platform. While acknowledging India’s unique strengths, the report also sheds light on China’s economic challenges and the avenues for collaboration among BRICS nations. As the world economy evolves, fostering strong partnerships and cooperation remains paramount.

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