Business Standard



After the Doklam stand-off, Prime Minister Narendra Modi and Chinese President Xi Jinping will hold their first substantiv­e bilateral meeting on Tuesday, which had put ties between the two countries under strain, on the sidelines of the ongoing summit in China of the BRICS (Brazil, Russia, India, China, South Africa) nations.

According to external affairs ministry officials, Modi will meet Xi at 10 am IST.

During the meeting, sources said, the two leaders are expected to discuss ways to create confidence-building measures.

The BRICS nations also called for the integratio­n of their financial markets.

“We agree to facilitate (this) through promoting the network of financial institutio­ns and the coverage of financial services within BRICS countries, subject to each country’s existing regulatory framework and WTO (World Trade Organizati­on) obligation­s,” went the joint declaratio­n on Monday.

This will include more cooperatio­n in the areas of swap, settlement and direct investment in local currencies, consistent with each central bank’s mandate. Also on the cards is greater communicat­ion between financial sector regulators. The previously created BRICS Interbank Cooperatio­n Mechanism will be playing an important role in this. Agreements between various national developmen­t banks on interbank local currency credit lines and on interbank cooperatio­n in credit rating is expected.

Last month, trade ministers of BRICS nations met in China to discuss economic, trade and investment cooperatio­n. They had approved the outlines for a ‘BRICS Investment Facilitati­on’, a mechanism to facilitate investment­s among member nations.

Interestin­gly, India and China are on opposing ends of the investment facilitati­on debate at the WTO. China had been actively pushing for a Trade Facilitati­on Agreement on Investment­s to be made part of the official agenda at the coming ministeria­l conference in Argentina this December. India has insisted any such addition to the agenda must result from a consensus.

BRICS finance ministers and central bank governors are to also cooperate on public-private partnershi­ps, including exchange of experience­s and applicatio­n of BRICS Good Practices.

In his speech during the plenary session, Prime Minister Narendra-Modi had called for speedy creation of a BRICS credit rating agency, to cater to the financing needs of developing nations.

Modi also said India was fast changing into one of the most open economies in the world, with improvemen­ts on global indices. He pitched the goods and services tax, which unified more than a dozen taxes from July 1, as India’s biggest economic reform ever. “In one stroke, a unified market of 1.3 billion people has been created,” he said.

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 ?? PHOTO: PTI ?? Prime Minister Narendra Modi ( right) and Chinese President Xi Jinping at the 2017 BRICS Summit in Xiamen, China on Monday
PHOTO: PTI Prime Minister Narendra Modi ( right) and Chinese President Xi Jinping at the 2017 BRICS Summit in Xiamen, China on Monday

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