India-China Cooperation Vital for BRICS+6 Group: SBI Report
A research report by the State Bank of India (SBI), the country’s biggest public sector bank, has analysed the opportunities and challenges of the BRICS+6 group, which consists of Brazil, Russia, India, China, South Africa and six other emerging economies. The report stresses the importance of enhancing collaboration and connectivity among the member countries, especially between India and China, to boost global economic growth and stability.
BRICS+6: A New Forum for South-South Cooperation
The BRICS+6 group was established in 2023, when the BRICS leaders invited six more countries to join their annual summit in Johannesburg, South Africa. The six new members are Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates. Together, these 11 countries represent 42% of the world’s population, 23% of the global GDP and 17% of the world trade.
The SBI report states that the BRICS+6 group has the potential to become a new forum for south-south cooperation, which is a term used to describe the exchange of resources, technology and knowledge among developing countries. The report suggests that the group can cooperate on various areas such as innovation and digital economy, climate change and sustainable development, trade and investment, infrastructure and connectivity, and security and governance.
India-China: The Key to BRICS+6 Success
The SBI report emphasizes that the success of the BRICS+6 group depends largely on the relationship between India and China, the two largest and fastest-growing economies in the group. The report notes that India and China have a lot of common interests and complementarities that can be exploited for mutual benefit and regional development.
The report also acknowledges that there are some unresolved issues and challenges between the two countries, such as border disputes, cross-border terrorism, trade imbalance and market access. The report urges both sides to resolve these issues through dialogue and cooperation, and to avoid any escalation or confrontation that could damage their bilateral ties or the stability of the region.
The report identifies some specific areas where India and China can increase their cooperation within the BRICS+6 framework, such as:
- Sharing data on river water management, especially on the Brahmaputra river that flows from China to India and Bangladesh.
- Allowing entry of Indian pharmaceutical companies in China’s market, which is one of the largest in the world.
- Promoting trade in local currencies, such as rupee and yuan, to reduce transaction costs, hedging expenses and foreign exchange risks.
- Enhancing partnership on innovation and digital economy, such as artificial intelligence, blockchain, e-commerce and fintech.
- Supporting each other on climate change and sustainable development goals, such as reducing greenhouse gas emissions, increasing renewable energy sources and improving environmental quality.
Conclusion
The SBI report concludes that the BRICS+6 group has a unique opportunity to shape the future of the global economy through greater cooperation and connectivity among its members. The report also stresses that India and China have a pivotal role to play in this process, as they are the two largest and most influential countries in the group. The report calls for both countries to work together on common issues and challenges, and to build trust and confidence in their relationship.
