Indian Prime Minister Narendra Modi delivered a stinging setback to British geopolitical divide-and-conquer strategy towards the BRICS, through his Oct. 23 meeting with China’s President Xi Jinping—the first in five years—on the sidelines of the BRICS summit. Later that morning, he adopted a more cautious “don’t-rock-the-boat” approach in his remarks to the two plenary sessions of the leaders.
According to India’s Ministry of External Affairs website, Modi said:
“There are high expectations of BRICS…. We have to give the world the message that BRICS is not a divisive organization but one that works in the interest of humanity…. As we take our efforts forward in BRICS, we must be careful to ensure that this organization does not acquire the image of one that is trying to replace global institutions, instead of being perceived as one that wishes to reform them.”
Referring to the BRICS New Development Bank, [he added]:(https://www.mea.gov.in/Speeches-Statements.htm?dtl/38453/English+Translation+of+Prime+Ministers+Remarks+at+the+Open+Plenary+of+the+16th+BRICS+Summit): “The NDB should continue to work on the basis of the demand-driven principle. And, while expanding the bank, ensuring long-term financial sustainability, healthy credit rating and market access should remain a priority.”
Indian Foreign Secretary Vikram Misri reflected the same caution in comments to the press. Valentina Schwartzman of RBC asked Misri: “Could you please comment on the Bloomberg report saying that India opposes a new expansion of BRICS, fearing that it might become sort of an anti-U.S. body,” which he sidestepped, responding: “I wouldn’t say the expansion of BRICS, but what we are discussing right now, which is the modalities and guidelines for implementing a partner country model with BRICS.”
TASS then asked: “Recently, the BRICS pay mechanism was introduced. In this regard my question is: One, can it be considered a viable alternative to the SWIFT interbank messaging system? Two, will India participate in this initiative, and if so, do you believe it could soon facilitate settlements in bilateral trade such as for energy resources?”
Misri: “So to your question on, if I got you correctly, you spoke about a BRICS payment mechanism having been introduced. I must confess I am not aware of an alternative payment mechanism having been introduced as especially—insofar as if I take the second part of your question—especially as an alternative to SWIFT. What I do know is that there are some discussions that are going on within BRICS in terms of local currency settlement of trade…. I think this might be something that could happen bilaterally between BRICS partners and could slowly be expanded to the multilateral plane amongst the BRICS countries, limited thus far to trade. How it can move to other areas of financial engagement between BRICS countries is something that I understand is still under study…. It would entail a number of changes in the financial mechanism and financial infrastructure of the different BRICS countries. So, insofar as the local currency settlement of trade-related issues is concerned, yes, that is something that is being discussed and encouraged within BRICS. But beyond that I think we still have some work to do.”
