19 countries express interest in joining BRICS group
19 countries including five ‘Arab’ countries and Iran may join the BRICS grouping.
- 19 Nineteen countries, including Saudi Arabia, the United Arab Emirates, Algeria, Egypt, Bahrain and Iran, have expressed interest in joining the emerging market grouping ‘BRICS’.
- Presently the countries included in BRICS are Brazil, Russia, India, China and South Africa.
- By the year 2028, the BRICS grouping is expected to represent 35% of the global economy.
- Additionally, the BRICS countries are planning to introduce their own “new currency” system. This is a major step towards de-dollarization.
- De-dollarization refers to the process by which a country reduces its reliance on the US dollar (USD) as a reserve currency exchange medium and unit of account.
- It involves a mix of macro-economic and micro-economic policies to increase the use of local currency in economic transactions.
Importance of BRICS for India
- Trade with BRICS member countries will create opportunities for India in key markets including China.
- Participation in non-Western groupings such as BRICS balances India’s growing partnership with the West.
BRICS
- Establishment: The grouping was formalized at the first meeting of the Foreign Ministers of BRIC (Brazil, Russia, India and China) during the United Nations General Assembly (UNGA) conference in 2006. It’s headquarter is in Shanghai China.
- About BRICS: It deliberates on important issues under three major pillars. These three pillars are: politics and security, economic and financial and cultural and people-to-people exchanges.
- Purpose: To promote peace, security, development and cooperation and to establish a more just and fair world.
- Other Important Information: BRICS countries represent 41% of the world’s population, 24% of GDP and more than 16% of world trade.
- BRICS countries have also established New Development Bank.
Source – Times of India