Editor’s Note:

Naina Lal Kidwai, member of BRICS Business Council of India, chairman of India financial services working group, and former president of Federation of Indian Chambers of Commerce & Industry (FICCI), receives an interview with People’s Daily recently. The following is an excerpt from the interview.

1. What do you think about BRICS role in international stage, especially for economic cooperation aspect?

Naina Lal Kidwai: BRICS is an important group, comprising some of the fastest growing emerging economies in the world like India and China. It constitutes over 40 percent of the global population and hence one can clearly see this bloc offering a huge consumer market for companies. It is potentially a great driver of global economic growth and will continue to play a decisive role in shaping the world economic order.

Ever since its creation, BRICS has established more than thirty areas of cooperation like economy and finance; health; science, technology, innovation; security and business, to name some of the important ones.

The formation of the New Development Bank (NDB) has been one of the important outcomes of this group’s economic and financial cooperation. To explore areas of business cooperation, the group formed the BRICS Business Council in 2013. The Council has identified nine areas of sectoral cooperation including Infrastructure, Manufacturing, Financial Services, Energy & Green Economy, Skills Development, Agribusiness, Deregulation, Regional Aviation and Digital Economy.

2. Do you agree that BRICS could provide or share a good experience or example for the other developing countries? If yes, please specify.

Naina Lal Kidwai: The group has developed a number of mechanisms for exchanging ideas and views and identifying areas of cooperation to strengthen their position. NDB is a concrete example of what we can achieve through dialogue and cooperation. We expect to see many such fruitful outcomes going forward.

With such results and efforts, I am sure BRICS already is serving as an example for other developing countries. It has shown the world, how a group with diverse interests can become a strong global power through cooperation and coordination.

It is also important to note that BRICS have started a strong outreach program, to neighboring countries and are engaged with them in a dialogue for a mutually beneficial relationship. 

3. For BRICS, what is the most important challenge currently? And kindly share with us your outlook for BRICS.

Naina Lal Kidwai: The world economy is going through a tough phase with trade disruptions and downside risks to growth. In the midst of a slowing global economy, BRICS countries will also likely find it difficult to maintain their growth momentum. However, it is expected that the scenario will start improving by the second half of next year.

Another broad aspect that the BRICS countries will have to be cautious about is the challenge of climate change as dependency on coal is still strong in these countries. The five nations will also have to forego individual interests and work in unison in order to be able to deal with the rapidly transforming world and emerge as a strong group in the international space.

4. For BRICS, what is the most important opportunity for continued future growth?

Naina Lal Kidwai: Seizing the opportunities and economic benefits of accelerating the transition to a new climate economy are key for BRICS. Globally, bold climate action to reduce emissions could deliver US$26 trillion in economic benefits between now and 2030.

There needs to be a decisive shift in investments and regulations to bring to the fore the newest, most efficient technologies so as to reduce carbon emissions and move the world towards “net zero” emissions by 2050. This will require collaboration between the public and private sectors and industry commitment to the global advancement of innovation.

Both India and China are battling pollution in fast growing cities. Shared learnings of urban design and transportation systems, how to build, and innovations therein, will go a long way in helping both countries and indeed the world.