BRICS SUMMIT 2024 : KEY OUTCOMES

BRICS Summit 2024: Key Outcomes and Global Impact on Geopolitics and Economy

Context:

• Prime Minister Narendra Modi returns to India after taking part in 16th BRICS Summit.
• Kazan declaration has been issued
• Bilateral meeting between Prime Minister Modi and Chinese President Xi Jinping. (1^st formal bilateral meeting after 5 years)

Key Points of Kazan declaration:

On Ukraine

• All 10 countries emphasized that principles of the UN charter must be respected and acted upon.
• Proposal of mediation given by India was also appreciated.
• Each of the members supported peaceful resolution through dialogue and diplomacy.

On Middle East

• Repeated grave concern at the deterioration of the situation and humanitarian crisis in the Occupied Palestinian Territory.
• Also expressed alarm over the situation in Southern Lebanon.
• Call for immediate cessation of military acts.

On the International Financial System’s Reform

• Demand to reform the current International Financial Architecture.
• Want to make International Financial Architecture more inclusive and just.
• Wanted reform in key institutions of International Financial System Including IMF, World Bank and Greater space for Global South.

On BRICS Grain Exchange

• Russia proposed the creation of BRICS Grain Exchange.
• It could later on be transformed to trade other commodities.
• Such an exchange would help protect trade between BRICS countries as well as other countries in the Global Souths.
• This would also save global south from excessive price volatility.

On BRICS Cross-Border Payment System

• All members agreed upon the widespread benefits of faster, low cost, more efficient, transparent, safe and inclusive cross-border payment instruments built upon the principle of minimizing trade barriers and non-discriminatory access.
• All members welcome the use of local currencies in financial transactions between BRICS countries and their trading partners.

BRICS Clear Depository

• Agreed to discuss and study the feasibility of establishment of an independent cross-border settlement and depositary infrastructure.
• Called for the creation of an independent payment system based on their National Currencies.
• Calls for the elimination of unilateral economic sanctions and secondary sanctions that are contrary to International Law.
• All countries to further strengthen the BRICS Interbank Cooperation Mechanism (ICM) that was originally established in 2010 to support the development and export of the BRICS Nations.

PM Modi’s Statement (salient points):

India supports restoration of peace between Ukraine and Russia. Our efforts prioritize humanity and India is ready to provide all possible assistance in the upcoming period.

PM Modi also met Iranian President Masoud Pezeshkian with whom he discussed

• Chabahar port
• The North-South Transport Corridor
• Situation in Afghanistan
• Also showed deep concern over the escalating conflict in Middle East region.

India-China Meeting:

• It was a handshake that was, perhaps watched by the world.
• The meeting between the two leaders came just two days after both countries signed a new border pact, which ensured that the situation at the Line of Actual Control (LAC) would return to what it was in 2020 before the standoff at Galwan took place in Ladakh.

Implications of this Meeting:

• Both leaders decided to restart dialogue mechanisms between Foreign Ministers and other officials to stabilize and rebuild bilateral relations.
• Tasked special representatives on the border questions: NSA Ajit Doval and Chinese Foreign Minister Wang Yi were to meet at an early date to take forward of resolving the border dispute. 

Win-Win for India:

• Normalization of ties between two countries.
• Resetting of the relations between the two country.
• Financially, it would be a boon for both nations as it would provide a stage for greater participation of Chinese companies in India, both as Investors and Suppliers.
• Can allow India to reduce trade deficits with China. (2023-24, trade deficit is at $85 billion)

Win-Win for China:

• China is struggling with its sputtering economy.
• The US has been increasing pressure on China, especially on issues like Taiwan and the South China Sea. However, a reset with New Delhi might change the dynamics. Xi Jinping hopes to weaken the US-led strategy.
• It also helps Xi Jinping counter the Quad alliance, comprising India, the US, Australia and Japan. Though Quad is not a military alliance, Beijing views it as the Asian Nato.
• Stable ties between the two countries will also have a positive impact on regional and global peace and prosperity.

Conclusion:

The 2024 BRICS Summit marked a significant step toward redefining global economic and political dynamics. The Kazan Declaration highlighted the BRICS countries’ unified stance on issues like the Ukraine conflict, Middle Eastern tensions, and the need for reform in the international financial architecture. Key initiatives, such as the BRICS Grain Exchange and Cross-Border Payment System, signal a shift toward greater economic independence and resilience for the Global South. The renewed dialogue between India and China also presents promising opportunities for stability and collaboration in the region. As these nations work together on common goals, BRICS continues to solidify its role as a powerful force in reshaping the global landscape.