‘Need for India, China to increase cooperation on…’: SBI report on the way forward for BRICS+6 

In a new research report, State Bank of India (SBI), stated that increased cooperation between China and India is essential for the way forward for the BRICS+6 countries. This report comes days after the conclusion of the BRICS Summit 2023 in South Africa that Prime Minister Narendra Modi attended in Johannesburg. BRICS – Brazil, Russia, India, China, and South Africa – had announced the induction of six more countries, Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates this year. 

The report stated that, among other things, the way forward for these nations was the “need for India and China to increase cooperation on issues like river water (Brahmaputra) data sharing, entry of Indian pharmaceutical companies in China etc.” 

“India must continue to work with other BRICS countries to reach an understanding with China on the issue of cross-border terrorism,” the research report underscored. 

The special SBI research report stated that the BRICS+6 nations need greater connectivity and more inter-grouping trade to get ahead. “Countries must focus on resolving their trade issues,” it added. 

Strong partnership on innovation and digital economy can spur growth, promote transparency and support sustainable development goals, it added. The report stated that the BRICS members have a lot of potential to contribute to climate governance. 

The SBI report highlighted the benefits of rupee trade. “There is a plethora of benefits of trade in rupee with the prominent ones are lowering of transaction costs, a greater degree of price transparency, quick settlement time, promoting international trade, reduction in hedging expenses, reduced cost of holding foreign reserve by the RBI and, most importantly, price discovery and internationalisation of the rupee,” it added. 

The Reserve Bank of India (RBI) had recently permitted 20 banks operating in the country to open 92 Special Rupee Vostro Accounts (SRVAs) of partner banks from 22 countries to promote bilateral trade in local currencies. 

Trade in rupee would be more valuable with partners such as Russia, Saudi Arabia, Egypt and the UAE, where India is a large importer with potential for Indian exports, the report stated citing its own analysis.  

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