Modi pitches for Brics’ own rating agency, transparency

Xiamen: Seeking strong partnership among Brics nations to spur economic growth, Prime Minister Narendra Modi on Monday pitched for setting up a Brics credit rating agency to counter Western institutions and serve the financial needs of sovereign and corporate entities of developing nations.

In an address at the plenary session of the 9th Brazil-Russia-India-China-South Africa (Brics) Summit here, Mr Modi said trade and economy were the foundations of cooperation among the bloc that has developed a robust framework for cooperation and contributed to the stability in a world “drifting towards uncertainty”.

He said a strong partnership among member nations on innovation and digital economy can help spur growth, promote transparency and support the sustainable development goals.

India had found that technology and digital resources were powerful tools in fighting poverty and corruption, he said, highlighting his government’s fight against black money and corruption.

“Brics has developed a robust framework for cooperation (and to) contribute stability and growth in a world drifting towards uncertainty. Our endeavours today touch diverse areas of agriculture, culture, environment, energy, sports and information and communications technology,” he said.

Mr Modi asserted that the grouping was in a “mission-mode” to eradicate poverty and ensure health, sanitation, skills, food security, gender equality, energy and education.

He said women’s empowerment programmes were “productivity multipliers” that mainstream women in nation building.

Pushing for a new credit rating agency, the Prime Minister said, “Last year we discussed pooling our efforts to create a Brics rating agency. An expert group has since been studying the viability of such an agency. I would urge that the roadmap for its creation should be finalised at the earliest.”

Mr Modi also called for stepping up cooperation in the financial sector. “Our central banks must further strengthen their capabilities and promote cooperation…...”

India had first mooted the idea of having such an agency for the Brics grouping which can solve impediments for the emerging market economies posed by the present western rating institutions like S&P, Moody’s and Fitch.