Economy

Finance Minister Discusses Economic Recovery With BRICS

On Thursday, the Finance Minister, Smt. Nirmala Sitharaman discussed with BRICS (Brazil, Russia, India, China, and South Africa) counterparts the significant areas of intra-BRICS cooperation crucial for supporting the BRICS countries economic recovery. 

The Finance Minister also discussed maintaining macroeconomic stability while protecting against future risks and uncertainties in the BRICS meeting. Smt. Nirmala Sitharaman, with the Governor of Reserve Bank of India (RBI), Shri Shaktikanta Das, virtually headed the second meeting of BRICS Finance Ministers and Central Bank Governors (FMCBG). 

The Finance Minister highlighted that BRICS plays a crucial role in dealing with the crisis of the COVID-19 pandemic. The FMCBGs endorsed the ‘BRICS Finance Ministers’ and Central Bank Governors’ Statement on Global Economic Outlook and Responding to COVID-19 Crisis’ along with an annexure on policy experiences of the BRICS in handling the economic impact of the pandemic in the meeting.

The BRICS also endorsed the ‘Technical Report on Social Infrastructure: Financing and Use of Digital Technologies’. This report is an exercise towards collaborative knowledge sharing on social infrastructure between the BRICS economies. It includes how the BRICS governments leveraged digital technologies to improve service delivery and enhance access, especially in education and health areas.

The BRICS Finance Ministers welcomed the conclusion of negotiations on Cooperation and Mutual Administrative Assistance (CMAA) in customs matters and deliberated progress made on the other custom related issues.

The Governor RBI, Shri. Shaktikanta Das discussed the Central Bank issues and their outcomes in the meeting. The discussion included Contingent Reserve Arrangement (CRA), financial inclusion, and information security cooperation.

The Finance Minister appreciated the BRICS members for their support and cooperation with the Indian Chair to prepare and finalise the relevant and significant deliverables of the BRICS finance.

The BRICS countries scheduled the BRICS Finance Ministers and Central Bank Governors meeting ahead of the BRICS Leaders’ Summit 2021. There was discussion and finalisation of key outcomes of the BRICS finance plan this year in this meeting. With the support and cooperation of the BRICS counterparts, there is an expectation that the BRICS countries’ economies, including India, will recover and grow soon.

For any clarifications/feedback on the topic, please contact the writer at mayashree.acharya@cleartax.in

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