BRICS Summit Day-2: Prime Minister Narendra Modi on 23 August is scheduled to hold a bilateral meeting with South African President Cyril Ramaphosa on the Day 2 of the 15th BRICS Summit. Then later in the day, the prime minister is also scheduled to attend open and closed plenary sessions in Johannesburg.
The plenaries will be followed by a cultural performance and a banquet dinner hosted by President Cyril Ramaphosa. The 15th BRICS Summit’s first day in Johannesburg saw the BRICS Business Forum Leaders’ Dialogue.
In his speech at the Organisation Business Forum Leaders’ Dialogue, PM Modi predicted that India’s economy will soon reach $5 trillion and serve as the world’s primary driver of growth in the years to come. Even if the world economy is struggling, India has become the major economy with the quickest rate of growth, Modi continued.
Mutual trust and openness, in particular in the Global South, can help have a significant impact, according to PM Modi’s special message to the conversation.
In the meantime, Ramaphosa claimed that the BRICS nations have a chance to contribute to and take part in Africa’s growth story because the nation has an urbanised population and can supply a reliable workforce in the future. “The population of Africa is young, urbanising, and connected to the internet. a population that will in the future offer reliable labour for businesses. President Ramaphosa stated that “the investment in skills…continues to expand.
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PM Modi arrived at the Summer Place in Johannesburg shortly after the Business Forum to take part in the BRICS Leaders Retreat, where the group’s leaders will discuss current events across the world and consider how best to use the BRICS platform to confront to address global concerns. Russian Foreign Minister Sergei Lavrov, Chinese President Xi Jinping, and Brazilian President Luiz Inacio Lula da Silva were there.
PM Modi arrived in South Africa earlier on Tuesday and received a ceremonial welcome at Waterkloof Air Force Base. Upon his arrival, PM Modi received a rousing welcome from the Indian diaspora chanting ‘Vande Mataram’ and the members of the Indian community were waiting for PM Modi’s arrival to welcome him with ‘dhols’ outside the Sandton Sun Hotel in Johannesburg.Women members of the Indian diaspora tied ‘Rakhi’ to the wrist of PM Modi as they welcomed him to the country. The prime minister also inspected a model of the Swaminarayan Temple in Johannesburg.The under-construction temple once completed by 2025 will be the largest Hindu temple in Africa and Southern Hemisphere.
The tour commemorates the 30th anniversary of the diplomatic ties between India and South Africa and is PM Modi’s third visit to the country. Brazil, Russia, India, and China (BRICS) were originally conceived as BRIC, a bold idea conceived by Goldman Sachs economist Jim O’Neil in 2001. Organisation is a collective depiction of rising emerging markets brimming with present and future economic prowess. In a significant step in 2010, South Africa joined the group, leading to the acronym being changed to Organisation. Organisation presents a different global order to challenge the supremacy of established institutions, serving as a light of economic hope.
Effective Global Financial Control Mechanisms are Being Developed by BRICS
The 15th BRICS investment meeting is being held in Johannesburg, and the group is exploring alternatives to the dollar. Promoting domestic currencies for trade is a primary priority at the summit since the participants want to support their home economies. Vladimir Putin, the president of Russia, claimed that Organisation is creating efficient systems for settling international trade disputes and managing currency exchanges to take control of the global economy. Local currencies will be the primary form of payment, displacing the dollar for international trade.
As Putin noted, the new payment system being built by the Organisation group will offer seamless services to businesspeople, multinational corporations, and entrepreneurs. The system, which won’t use the dollar, is now being developed.
There are low odds of switching back to the old mode of doing business once members summit appears to be at ease making payments in local currencies. 20% of world exports are controlled by the members, and the dollar may suffer if they stop using it as a payment method. Their combined population of 3 billion allows enterprises to reach a wider market and strengthen local economies.
BRICS Members’ Economies Will Grow Thanks to a New Mechanism
Businesses in the nations may decide to stop using the US dollar and start using local currencies instead. The action will considerably improve each currency’s prospects and eventually enable it to compete with the US dollar. The procedure could start out slowly but pick up speed after a while.
Conclusion: If the development materializes and has an impact on numerous financial sectors, the U.S. economy could suffer. Find out which U.S. industries might be affected by the members decision to quit paying in dollars here. Brazil, Russia, India, China, and South Africa are together referred to as BRICS economies.