BRICS' Rising Influence: A New Era of Economic Cooperation

Leaders of BRICS, representing 37% of the global economy, met in Russia to discuss new projects, including a grain exchange and a cross-border payment system. Russian President Putin anticipates strong economic growth and proposed initiatives to boost collaboration. The summit also tackled the creation of alternative financial structures.

In a significant gathering held in Russia, leaders of the BRICS nations, together representing 37% of the global economy, mapped out a future of enhanced cooperation, including the launch of a BRICS grain exchange and a cross-border payments system. Russian President Vladimir Putin, amid international pressures, highlighted the group's foreseeable economic growth at 3.8% for 2024/25, surpassing the global forecast of 3.2-3.3%.

Putin emphasized BRICS' burgeoning global economic role, underpinned by factors like population growth and capital accumulation. As the top global wheat exporter, Russia proposed the grain exchange initiative, potentially expanding to oil, gas, and metals, which could lead to stable pricing and bolster food security.

The summit also supported a unified payment system to ease trade among BRICS countries, bypassing traditional dollar-based systems. Leaders, including Brazil's President Lula and India's Prime Minister Modi, endorsed financial integration, while China's President Xi called for deeper economic ties. Discussions included the formation of a BRICS investment platform, aiming at joint ventures within BRICS and the Global South.

(With inputs from agencies.)