Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

As the final five phases of polls draw closer, rift among <keyword id="20101713" type="General" weightage="20" keywordseo="INDIA-bloc-partners" source="keywords">INDIA bloc partners</keyword>, <keyword id="21533469" type="General" weightage="20" keywordseo="Congress-Left-combine" source="keywords">Congress-Left combine</keyword> and the <keyword id="19942089" type="General" weightage="20" keywordseo="TMC" source="keywords" meta.keywordsubtype="org" meta.entityname="TMC" meta.hostid="153" meta.entityid="TMC">TMC</keyword>, which are fighting separately has intensified, triggering a fierce contest across half of the remaining 36 constituencies in West Bengal driven by local issues such as <keyword id="20074422" type="General" weightage="20" keywordseo="Sandeshkhali" source="keywords">Sandeshkhali</keyword> and the SSC scam. TMC's decision to contest independently in the state, rather than as part of the bloc, has led to a three-way contest, with the other contenders being the BJP and the Congress-Left alliance. Nevertheless, both TMC and Congress have asserted that they are part of the INDIA bloc at the national level and are authentic representatives of the opposition front in Bengal. Political analysts suggest that without a dominant national narrative like national security after the 2019 Pulwama attacks, local concerns such as corruption allegations, the cancellation of School Service Commission (SSC) jobs, incidents in Sandeshkhali and implementation of the <keyword id="19965573" type="General" weightage="20" keywordseo="Citizenship-Amendment-Act" source="keywords">Citizenship Amendment Act</keyword> (CAA) are altering election dynamics. Maidul Islam, a political scientist at the Centre for Studies in Social Sciences, remarked, "Till a few months ago, it seemed the elections in Bengal will be a bipolar contest between the TMC and BJP. But with issues like corruption and Sandeshkhali gaining prominence, the Left-Congress alliance is fast gaining traction in several seats and turning the polls into a three-cornered contest in at least 18-20 LS segments." He said besides the two and three seats in Malda and Murshidabad districts, where TMC and Congress secured two each and the BJP one in 2019, there are 13 seats spread across South Bengal, where the TMC and the Left-Congress alliance are engaging in intense competition. "It's not that the Left-Congress will win many seats, but in segments where their vote share is above 10 per cent, there is a likelihood that they might influence the outcome, to the disadvantage of either the TMC or the BJP, if they manage to secure two per cent more votes," Islam added. According to sources in TMC and CPI(M), the electoral battleground extends beyond Malda and Murshidabad, encompassing Lok Sabha segments like Dum Dum, Srerampore, Arambagh, Hooghly, Howrah, Barrackpore, Bardhaman-Purba, Bardhaman-Durgapur, Bankura, Purulia, Tamluk, Kolkata North, and Jadavpur, all poised for a three-cornered fight. Notably, eight of these seats were won by TMC and the remaining by BJP in the 2019 parliamentary polls. "The shift in dynamics presents the Congress-Left alliance as a significant player, and its emergence complicates the electoral narrative, transcending the conventional TMC versus BJP dichotomy," political analyst Subhomoy Moitra said. While the Left Front is contesting 30 seats, the Congress has fielded candidates in 12 out of 42 seats. "We wanted an alliance with the Congress, but they were delaying the seat-sharing arrangements, so we decided to go alone. Now the Left-Congress alliance is helping the BJP by trying to eat into our votes," remarked TMC leader Santanu Sen. According to TMC leaders, the breakup of INDIA alliance in Bengal has both electoral advantages and disadvantages. "After the Left and Congress alliance fell apart in West Bengal in 2019, it had led to a four-cornered contest with BJP bagging the entire chunk of the anti-TMC votes in the state," they said. In the 2019 Lok Sabha elections, the BJP bagged 18 seats and its vote share rose from 17 to 40 per cent. Meanwhile, despite a 3 per cent rise in vote share, the TMC lost 12 seats, dropping from 34 to 22. The Left drew a blank with a vote share decline from 24 per cent to 6 per cent, and the Congress lost two seats, shrinking its vote share from 9.5 per cent to 5 per cent and bagging just two seats. "Local issues such as corruption and SSC scam are helping the Left-Congress in the state as there is anger among a section of people against the TMC and also against the BJP over the perception of a tacit understanding," a TMC leader said. Analysts observe that <keyword id="43868" type="General" weightage="100" keywordseo="mamata-banerjee" source="Orion">Mamata Banerjee</keyword>'s intensified criticism of Left and Congress, accusing them of aiding BJP, and the ensuing sharp responses from CPI(M) and Congress, alleging a secret pact between TMC and BJP, as indicative of the growing significance of Left-Congress alliance. Data from various local elections and by-polls conducted after 2021 assembly elections indicate a shift in anti-TMC votes as there has been a resurgence of Left-Congress combine. Incidentally, the BJP had witnessed a decline in its vote share as compared to the 2019 Lok Sabha and 38 per cent in 2021 assembly polls. In 2023, violence scarred panchayat polls which covered nearly 70 per cent of the state's electorate, the TMC had bagged 51 per cent of votes whereas the BJP had bagged 22 per cent. The Left-Congress-ISF alliance had, however, bagged 23 per cent votes. The ISF this time, however, has decided to contest alone in 17 seats. Congress leader Suvankar Sarkar emphasized, "People are disenchanted with the TMC and the BJP, as they are both sides of the same coin. People are coming out in large numbers to support the Left-Congress candidates." CPI(M) leader Sujan Chakraborty expressed confidence in the Left-Congress alliance's potential to deliver surprising results in the elections, claiming initial success in breaking bipolar politics in Bengal. BJP state president Sukanta Majumdar downplayed the significance of the rift in opposition alliance and the three-cornered fight in various seats. "People know that BJP is only fighting TMC's misrule in Bengal. Those who want to vote against TMC, will vote for us only just like in the 2019 and 2021 polls," he said. Political scientist Biswanath Chakraborty suggested that TMC stands to gain the most from the three-cornered contest. In minority pockets, the Left-Congress alliance could dent TMC's vote base, potentially aiding BJP's prospects, he noted.

West Bengal Elections: Rift among INDIA bloc partners triggers three-cornered intense contests

If there is one word to aptly describe the ongoing 2024 Lok Sabha <keyword id="20515965" type="General" weightage="20" keywordseo="election-results" source="keywords">election results</keyword>, specifically for the incumbent party, it would be jolting, startling, and perhaps, even surprising. The exit polls were wide off the mark, and then some. Less than a week ago, India reported a remarkable <keyword id="19972825" type="General" weightage="20" keywordseo="GDP-growth" source="keywords">GDP growth</keyword> rate of 8.2% for the fiscal year 2023-24. Over the weekend, exit polls predicted a clear and easy majority for the ruling Bharatiya Janata Party (BJP) and its alliance NDA. Consequently, benchmark indexes, Sensex and <keyword id="6354813" type="General" weightage="20" keywordseo="Nifty" source="Orion">Nifty</keyword>, both zoomed more than 3 per cent on Monday, breaching the all-time high records. On Tuesday, the tides turned! Putting a harsh full stop on the ruling party’s “abki baar 400 paar” narrative, the electoral situation on Tuesday evening shows less than 300 seats to the NDA and over 230 seats to the opposing INDIA bloc. What’s even more concerning for the ruling party is its tally dropping from 303 in 2019 to less than 245 this year. Consequently, on Tuesday, Sensex witnessed the steepest drop in over four years since the pandemic, recording a drop of 4,389 to settle just over 72,000. Nifty also dipped by almost 6%, standing at 21,884 points. If the trends hold, the BJP will lack a clear, simple majority on its own for the next five years, even if it manages to form a government with its pre-poll allies. The question is, how stable the new government would be, what would be the overall impact of this verdict on India’s economy, and what’s the story behind the jitters exhibited by the markets on Tuesday? <cmsannotation type="cmsannotation" annotationid="India’s incredible economic growth story" comment="subhead" text="India’s incredible economic growth story">India’s incredible <keyword id="19900794" type="General" weightage="100" keywordseo="economic-growth" source="keywords">economic growth</keyword> story </cmsannotation>Perched to be the world’s 3rd largest economy by 2027, India’s current GDP value stands at $3.9 trillion. As per FM <keyword id="20200167" type="General" weightage="20" keywordseo="Nirmala-Seetharaman" source="keywords">Nirmala Seetharaman</keyword>, the Indian economy is anticipated to grow at a rate of close to 7% in FY25 and hit $7 trillion by 2030. The <keyword id="3530620" type="General" weightage="20" keywordseo="Gross-Value-Added" source="Orion">Gross Value Added</keyword> (GVA) data supports the optimistic outlook, with a growth rate of 7.2% in FY24 compared to 6.7% in FY23. And notably, this strong economic growth has come at a time when most of the major economies across the globe are grappling with a slowdown. While few expect India to maintain a robust growth of 8.2%, most economists agree that GDP growth could moderate to around 7% in FY25. But most of these growth forecasts are contingent on a stable government and policy reforms at the centre. So, does the sharp fall in benchmark indices on Tuesday foretell a twist in India’s growth story? <cmsannotation type="cmsannotation" annotationid="Is there a twist in the tale?" comment="subhead" text="Is there a twist in the tale?">Is there a twist in the tale? </cmsannotation>Firstly, the <keyword id="16791710" type="General" weightage="20" keywordseo="foreign-portfolio-inflows" source="Orion">foreign portfolio inflows</keyword> (FPI), indicative of the global confidence reposed in the Indian markets, have been on a consistent decline over the past 3 months. As of 4th June 2024, foreign institutional investors had withdrawn a total of Rs 14,339 crores from the Indian equity markets while investing Rs 55,273 crores in debt instruments, which are traditionally reflective of safety, security, and a low-risk and change appetite. Foreign institutional investors had also withdrawn Rs 25,586 crores during May 2024, and Rs 8,671 crores during April 2024. If anything, the Indian market stands atop the strong confidence of domestic investors. The AUM (assets under management) of the Indian mutual fund industry stood at a record high of around $57 lakh crores in April 2024, even as the SIP AUM hit a record high of Rs 11.26 lakh crore. "The steep fall is due to the results so far falling short of the exit polls which the market had discounted yesterday. If BJP doesn't get a majority on its own there will be disappointment and this is getting reflected in the market. Also it is possible that Modi 3.O may not be as reform-oriented as the market expected and may turn more welfare- oriented," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services. <cmsannotation type="cmsannotation" annotationid="Cautiously optimistic investors could prevail" comment="subhead" text="Cautiously optimistic investors could prevail">Cautiously optimistic investors could prevail </cmsannotation>But does this mean India’s growth story stands threatened or even jeopardized? Even though social media is flooded with memes that might lead one to believe it is all over for India’s story, the country remains the fastest growing economy amongst all G-20 nations in 2024, compelling almost all rating agencies to positively hike the country’s potential growth rate. But, equally noticeable is the fact that India’s private consumption, a major indicator of the economy’s growth, jumped by only 3.5% over the last 3 months of 2024. India now makes up 6.7% of the world’s GDP by purchasing power parity (PPP). As figures go, India is set to become a $10 trillion economy by 2030. Veteran investors like Raamdeo Agrawal, who heads Motilal Oswal Financial Services, believe that India’s potential growth rate of 8-8.5% is not going anywhere and that NDA’s leadership is here to stay. In his words, if an investor has managed to make 4-5x in the last 3-4 years, one will have to give in 20-30%. But that is where you will have to persist as an investor. "With the NDA still looking to form a government, though with the important support of coalition partners, markets look jittery about the prospects of strong decision making. Markets believe that the reformistic approach, which was a hallmark of the previous two terms, might take a backseat in the third term. However, our sense is that it is still early to jump to conclusions and should ideally wait for a clearer picture," said Manish Chowdhury, Head of Research, StoxBox. But all in all, the NDA government is most likely to stay for the full term, and those who bet on the same stand to stay safe despite the surprisingly strong performance of the INDIA alliance. However, in the end, the only one who wins in the market stays put in the market in the long run. Because NDA, or INDIA, compounding is here to stay, all set to immensely benefit long-term investors. (With inputs ANI)

Economic implications of Lok Sabha Election 2024 results: Would lack of a clear majority for BJP impact India’s growth story?

By Harinder Mishra Jerusalem, May 19 () Foreign Ministers of India and Israel have vowed to work together to strengthen and expand the multi-faceted bilateral relationship for a mutually beneficial partnership, days after a new government was sworn in in the Jewish state. Israel's new government was sworn in on Sunday under Prime Minister Benjamin Netanyahu, bringing an end to the longest political deadlock in the country's history which saw a caretaker government in charge for over 500 days and three back-to-back general elections with no clear verdict. The vote of confidence in the new government was passed with 73 votes in favour and 46 against in the Knesset (Israeli parliament). External Affairs Minister S Jaishankar on Monday congratulated his newly-appointed Israeli counterpart Gabi Ashkenazi, a former Chief of Staff of the Israel Defence Forces. "Mazal Tov @Gabi_Ashkenazi on assuming the post of Israeli Foreign Minister. I look forward to working with you to strengthen our multi-faceted and mutually beneficial partnership", Jaishankar tweeted in Hebrew. Ashkenazi thanked Jaishanker and stressed on strengthening ties in diverse fields between the two countries. "Thank you @DrSJaishankar. I am also looking forward to working with you to strengthen and expand the strong relations between Israel and India in multiple fields", the Israeli foreign minister tweeted in Hindi and English on Monday. Earlier, Prime Minister Narendra Modi was among the first few world leaders to congratulate Israeli Prime Minister Netanyahu on Sunday on forming the government for a record fifth time, soon after the Knesset approved the new government. "Mazal Tov (congratulations) my friend @netanyahu for forming your fifth government in Israel," Modi wrote on Twitter in Hebrew and English. "Thank you my dear friend the Prime Minister of India! We will continue to strengthen the important relationship between us," Netanyahu responded in Hebrew on Sunday. Netanyahu, 70, and his rival-turned-partner Benny Gantz joined hands to form a coalition government under a power-sharing agreement that would see the latter taking over the premiership on November 17, 2021. The new government, which according to the coalition agreement, will see Gantz replace Netanyahu as the Prime Minister after 18 months. Gantz will serve as Defense Minister until he is scheduled to take over as the Prime Minister in November next year. He will till then have the title of 'Alternate Prime Minister', something that Netanyahu will take over from him after exchanging the baton. The beleaguered Israeli prime minister, who surpassed Israel's first Prime Minister David Ben-Gurion's record of the longest-serving Premier in the country's history last year in July, managed to hold on to his right-wing bloc amid three inconclusive polls to force his main rival Gantz to finally succumb to the demand of a broad national unity government. Gantz campaigned on replacing Netanyahu due to the prime minister's indictment on graft charges, but dropped his opposition to sitting in a government with him after the latest elections again ended with no clear winner, citing the coronavirus pandemic and a desire to avoid a fourth round of voting. The move led to the breakup of the Blue and White alliance, with Gantz being elected as Knesset speaker with the backing of Netanyahu's right-wing religious bloc as they negotiated the terms of the new government. Ahead of the swearing-in ceremony, Likud and Blue and White on Wednesday evening released the policy principles of the new government, as instructed by Israel's Supreme Court. The document said that the government will initially form an emergency cabinet to deal with the coronavirus pandemic and formulate a plan to bring Israel out of the accompanying economic crisis while rolling out a "socioeconomic safety net" and special programmes for citizens who are struggling financially. HM MRJ MRJ

India, Israel agree to strengthen bilateral ties

Defence Minister <keyword id="6355121" type="UNKNOWN" weightage="20" keywordseo="Rajnath-Singh">Rajnath Singh</keyword> on Wednesday arrived here on a three-day visit to Russia to attend a crucial meeting of the Shanghai Cooperation Organisation (SCO) and hold talks with his Russian counterpart Sergey Shoigu on further boosting bilateral defence cooperation. The defence ministers of all eight SCO member nations are expected to deliberate on regional security challenges like terrorism and extremism and ways to deal with them collectively here on Friday, officials said. "Raksha Mantri Shri @rajnathsingh reached Moscow on a three day visit to Russia. He was received by Major General Bukhteev Yury Nikolaevich at the airport," the Indian embassy tweeted. The meeting is taking place under the shadow of a fierce border row between India and China, both members of the influential bloc. "Reached Moscow this evening. Looking forward to my bilateral meeting with the Russian Counterpart General Sergey Shoygu tomorrow," Defence Minister Singh tweeted. The SCO comprises eight member states -- India, Kazakhstan, China, Kyrgyzstan, Pakistan, Russia, Tajikistan and Uzbekistan. Chinese Defence Minister Gen Wei Fenghe and Pakistan's Pervez Khattak are expected to attend the SCO meeting. Asked about the possibility of a bilateral meeting between Singh and Wei on the sidelines of the SCO event, officials said there is no such plan. Before departure, Singh in a tweet said that issues of mutual interest will figure in his talks with Shoigu. "India and Russia are privileged Strategic Partners. Looking forward to further this partnership during my visit," he said. In his meeting with Shoigu, Singh will press for expediting supply of a number of weapons systems, ammunition and spares to India by Russia under contracts which were concluded earlier, officials said. In the talks, both sides are expected to officially finalise a long-pending proposal to produce AK 203 rifles in India. The officials said Singh is also likely to request the Russian side to ensure the timely delivery of the S-400 missile defence systems to India. The delivery of the first batch of S-400 surface-to-air missile systems to India is scheduled by the end of 2021. It is Singh's second visit to Moscow since June. He had represented India at the Victory Day Parade in Moscow on June 24 that commemorated the 75th anniversary of the Soviet victory over Nazi Germany in the Second World War. The SCO, seen as a counterweight to NATO, has emerged as one of the largest transregional international organisations which accounts for almost 44 per cent of the world population stretching from the Arctic Ocean to the Indian Ocean and from the Pacific Ocean to the Baltic Sea. The aim of the SCO is to maintain peace, stability and security of the region. India became a member of the SCO in 2017. SEE ALSO: <a href="https://www.businessinsider.in/tech/enterprise/news/rise-in-work-from-anywhere-will-lead-to-more-outsourcing-thats-an-opportunity-for-tcs-infosys-and-hcl-tech/articleshow/77864248.cms">TCS, Infosys and HCL Tech have the most to gain from post COVID wave of outsourcing</a> <a href="https://www.businessinsider.in/tech/apps/news/india-bans-pubg-wechat-and-118-other-mobile-applications/articleshow/77890776.cms">India bans PUBG, Ludo World, and 116 other Chinese mobile applications</a> <a href="https://www.businessinsider.in/india/news/pm-modi-twitter-account-hacked-heres-what-the-hacker-had-tweeted/articleshow/77902203.cms">Twitter account of PM Modi’s personal website hacked— Here’s what the hacker had tweeted</a>

Rajnath Singh reaches Russia for SCO meet under shadow of India-China border row

New Delhi, Dec 1 () Japan on Sunday gave clear indications that efforts were on to make India join the ambitious Regional Comprehensive Economic Partnership (RCEP), saying all member countries of the grouping were committed to address New Delhi's concerns.
 After years of negotiations, India last month pulled out of the proposed RCEP over unresolved "core concerns" at a summit meeting of the participating countries, saying the proposed pact in its current form would have adverse impact on lives and livelihoods of all Indians.
 A spokesperson of the Japanese government said Prime Minister Narendra Modi explained India's position on the RCEP during a meeting with Japanese Foreign Minister Toshimitsu Motegi and Defence Minister Taro Kono on Saturday.
 In the meeting, the Japanese ministers explained Tokyo's views on the matter, Deputy Press Secretary in Japan's Ministry of Foreign Affairs Atsushi Kaifu told reporters while referring to a statement issued by RCEP countries in Bangkok on November 4.
 The two Japanese ministers were here to attend the first edition of Indo-Japan defence and foreign ministerial dialogue.
 When asked whether efforts are on to address India's concerns and whether Japan was hopeful of New Delhi joining the grouping, Kaifu said the RCEP statement mentioned that all negotiating countries will work together to resolve outstanding issues.
 "It was mentioned that efforts will be made to address India's concerns," he said when asked whether back-channel talks are on to convince New Delhi to join the RCEP.
 The negotiations for the proposed free-trade agreement included 10 member countries of the Association of Southeast Asian Nations (Asean) and six of the bloc's dialogue partners -- China, Japan, South Korea, India, Australia and New Zealand.
 In their statement, 15 RCEP participating countries said that they concluded text-based negotiations for all 20 chapters and that the deal could be signed early next year.
 In the RCEP summit in Bangkok, Modi conveyed India's decision not to join the RCEP deal at a summit meeting of the 16-nation bloc, effectively wrecking its aim to create the world's largest free trade area having half of the world's population. MPB RT

Japan indicates efforts on to address India's concerns over RCEP

New Delhi, Nov 20 () The government told Lok Sabha on Wednesday that it did not join the mega free trade agreement RCEP as the grouping did not address the outstanding issues and concerns of India.
 Commerce and Industry Minister Piyush Goyal in a written reply to the House said that during the third RCEP Leaders Summit on November 4 in Bangkok, India stated that the current structure did not reflect its guiding principles or address the outstanding issues and concerns of India, in the light of which India did not join the agreement.
 The Regional Comprehensive Economic Partnership (RCEP) bloc comprised 10 Association of South East Asian Nations (Asean) group members (Brunei, Cambodia, Indonesia, Malaysia, Myanmar, Singapore, Thailand, the Philippines, Laos and Vietnam) and their six FTA partners -- India, China, Japan, South Korea, Australia and New Zealand.
 He said that RCEP had provisions on trade remedies which also covers anti-dumping rules.
 "Moreover, India was seeking an automatic trigger safeguard mechanism (ATSM) for tackling import surges," he added.
 Replying to a separate question on start-ups, he said 7,141 start-ups are recognised by the DPIIT during this fiscal till November 5.
 Out of this, a maximum of 1,778 are from Maharashtra. It is followed by Karnataka with 1,374 start-ups, Delhi with 1,152 and Uttar Pradesh with 709.
 In terms of sector, a maximum of 1,351 start-ups are from IT sector. It is followed by healthcare (808), education (658), professional and commercial services (400) and finance technology (362). RR
RVK

RCEP did not address outstanding issues, concerns of India: Goyal

<ul><li>Mario Draghi, the president of the <keyword id="6355123" type="LOCATION" weightage="20" keywordseo="eu">Eu</keyword>ropean Central Bank, said that the EU's growth in 2019 would be lower than expected. </li><li>Hence, the EU’s demand for <keyword id="35091" type="CITY" weightage="20" keywordseo="imports">imports</keyword> will decline - something that will be exacerbated by the global trend towards protectionism. </li><li>This will have negative implications for <keyword id="3658" type="COUNTRY" weightage="20" keywordseo="India">India</keyword>, since the EU is its largest trading partner. </li></ul>Yesterday, Mario Draghi, the president of the European Central Bank, <a href="https://in.reuters.com/article/ecb-policy/ecbs-draghi-warns-of-weaker-growth-ahead-idINKCN1PH2XV?il=0">reaffirmed doubts</a> about the ongoing slowdown in the European Union (EU), adding that growth in 2019 would be lower than expected, due in part to the impending exit of Britain from the EU as well as a sluggish economic growth in China. Given the downward projections for demand and growth in the Eurozone, there will be negative implications for the the bloc’s trading partners. The EU’s demand for imports will decline - something that will be exacerbated by the global trend towards protectionism. India, which counts a number of European countries like Germany, Belgium and Italy among its top trading partners, is likely to suffer a decline in <keyword id="35090" type="COMPANY" weightage="20" keywordseo="exports">exports</keyword> as a result of the slowdown in the EU. Taken together, Eurozone countries account for the <a href="http://ec.europa.eu/trade/policy/countries-and-regions/countries/india/">largest share of Indian trade volumes</a> (13.1%), ahead of China and the US, according to the European Commission. The country’s exports to the EU have been steadily increasing in the last few years, despite stalled progress on a <keyword id="44844" type="ORGANIZATION" weightage="20" keywordseo="Trade">trade</keyword> treaty. 
 
 
 
 









 <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[
<div class="flourish-embed" data-src="visualisation/206538"></div>
]]></cdata></div>



 
 
 
 Since 2007, plans for an India-EU free trade agreement have been <a href="https://economictimes.indiatimes.com/news/economy/foreign-trade/eu-india-fully-committed-to-move-forward-on-free-trade-pact-official/articleshow/65919850.cms">in the works</a> but have been repeatedly delayed owing to disagreements over duty cuts on India’s imports of automobiles and dairy products as well as intellectual property rights. India’s top merchandise exports to the EU in 2017 were textiles, machinery and chemicals. Hence, given the risk of oversupply, domestic exporters of these goods will have to crimp production volumes. 
 
 
 
 
 <div type="javascript" title="Custom" contenttype=""><cdata><![CDATA[
<div class="flourish-embed" data-src="visualisation/206549"></div>
]]></cdata></div>











 
 
 




 India’s services exports, a bulk of which constitutes IT services, are also set to take a hit. Total services exports came in at €15.3 billion (₹1.2 trillion) in 2016, making it the <a href="http://ec.europa.eu/trade/policy/countries-and-regions/countries/india/">fourth largest services exporter</a> to the EU. India is counting on export growth to help achieve its economic growth and job creation targets for the coming year. Both the IMF and World Bank have predicted that India’s economy will grow by 7.5% in the coming fiscal year. A reduction in export volumes to the EU will endanger this. SEE ALSO: <a href="https://www.businessinsider.in/india-to-make-a-renewed-push-for-an-important-regional-trade-treaty-that-will-create-the-worlds-largest-trading-bloc/articleshow/66602874.cms">India to make a renewed push for an important regional trade treaty that will create the world’s largest trading bloc</a> <a href="https://www.businessinsider.com/ap-india-looks-to-bolster-partnership-with-eu-2018-9?IR=T">India looks to bolster partnership with EU</a>

A slowdown in the Eurozone points to doom for India's ailing exports

<ul class="summary-list"><li>Russia is hosting a BRICS summit this week, showing the limits of attempts to isolate it.</li><li>The grouping is buoyant after ballooning from five members to nine.</li></ul>Russia is flexing its muscles at the center of the BRICS economic bloc which seeks to rival the West.The nation is hosting a meeting of the grouping this week, the first since the group almost doubled its membership.The larger grouping gives them more weight — and is a rebuke to Western-led attempts to isolate Russia economically.It also complicates the grouping, introducing new competing interests and rivalries.Geopolitical analysts say it could dilute the group's ability to take action, and reduce it to a talking shop.Iran, Egypt, Ethiopia, and the United Arab Emirates are the new BRICs entrants, joining earlier members Russia, India, China, Brazil, and South Africa. Saudi Arabia has been invited to join but has not formally done so yet.Russian President Vladimir Putin <a target="_blank" class="" href="https://brics-russia2024.ru/en/">touted</a> the expansion as proof of the group's "growing authority" and role in international affairs.Yet geopolitical tensions and competing interests among the group are dragging down Russia's efforts to use it to chip away at the dominance of the West, particularly the US dollar."BRICS expansion is no easy task," said Abishur Prakash, the founder of The Geopolitical Business, a strategy advisory firm in Toronto."It risks creating rival camps within the group," he told Business Insider.<h2 id="a422f5a1-a2fa-40bb-898f-89b58f30e598">A 'raw' grouping</h2>Since its founding in 2006 — with Brazil, Russia, India, and China as members, before South Africa joined in 2010 — the bloc has tried to challenge Western economic dominance.Over the past two decades, its members experienced significant economic growth. After the recent expansion, its member states represent almost 46% of the world's population and about 25% of global exports.Last year, more than 40 countries <a target="_blank" href="https://www.businessinsider.com/brics-summit-countries-interested-brazil-russia-india-china-south-africa-2023-8">expressed interest</a> in joining the bloc.But Anton Barbashin, cofounder and editorial director at Riddle Russia, an online journal on Russian affairs, described the group as a "raw collection" of countries.They have "no chance" of political unity due to competing interests and starkly differing attitudes, he said.Members have grappled with <a target="_blank" class="" href=" https://www.cfr.org/backgrounder/what-brics-group-and-why-it-expanding">internal disagreements</a> over relations with the West, territorial claims, and Russia's invasion of Ukraine.Others are engaged in internal standoffs. India and China have clashed over disputed territory along their border, though they <a target="_blank" class="" href="https://www.youtube.com/live/QiqK0eIJn8E">announced a deal</a> on patrolling arrangements this week.Some countries — notably India and South Africa — also have a tricky balancing act to do, engaging with the group without alienating their partners in the West.<h2 id="1875563d-1228-4de5-a7cc-5b63106239c1">Talking shop</h2>Barbashin told BI that the BRICS Summit is important for Russia because it has been cut out from other international platforms.It's a way to communicate and possibly strike "some deals in the future that we don't necessarily foresee," he said.In total, representatives of 32 countries are set to attend the summit this week, according to Moscow.Barbashin said that the group's size masks its relative impotence."It's just a nice facade," he said, "and it falls within the idea that economic growth should translate into a greater political setting."Leaders are expected to discuss how far members are willing to commit to the group.Una Aleksandra Berzina-Cerenkova, director at Riga Stradins University's China Studies Center, told Politico that "China uses BRICS to give it a mandate to push global visions and post-Western vision."During a press briefing held by the Center for European Policy Analysis on Monday, one analyst foresaw major hurdles for the group to move past its status as a "debating club."Evgeny Roshchin, a visiting scholar at Johns Hopkins University's Henry A. Kissinger Center for Global Affairs, said the group would need to choose how to distribute power between its members should more join."Behind the rhetoric, there's a huge concern — even within Russia — whether the new members will become their equals," he said, noting that Russia could lose its leverage and decision-making among a large group of notionally equal members.<h2 id="ab0780f6-acfd-427a-bc7c-109fb06111f1">Taking on the dollar</h2>Another challenge BRIC members like Russia and China face is trying to change the fundamentals of global <a target="_blank" rel="noopener noreferrer" class="c-link" href="https://www.businessinsider.com/russia-economy-commodities-trading-centers-brics-us-dominated-global-finance-2024-10">financial trading systems</a> that rely overwhelmingly on the US dollar.During a <a target="_blank" rel="noopener noreferrer" class="c-link" href="http://en.kremlin.ru/events/president/news/75349">BRICS Business Forum</a> in Moscow last week, Putin said group members were working on alternative payment systems, as a rival to SWIFT.The alternative systems would aid cross-border payments between members, according to a <a target="_blank" rel="noopener noreferrer" class="c-link" href="https://www.yakovpartners.com/publications/imfs/">report</a> by Russia's finance ministry, its central bank, and consultancy Yakov &amp; Partners.It envisioned a network of payments using local currencies rather than a default reserve currency like the dollar.Russia already has a model it can look to for transactions among central banks: the mBridge system under the <a target="_blank" rel="noopener noreferrer" class="c-link" href="https://markets.businessinsider.com/news/currencies/cbdcs-crypto-central-banks-bis-digital-currencies-bitcoin-stablecoins-tether-2021-9">Bank for International Settlements</a>.BRICS members are also toying with alternative currencies, spanning Chin'a digital yuan and Moscow's interest in crypto.The greenback, though, will be <a target="_blank" class="" href="https://markets.businessinsider.com/news/currencies/de-dollarization-dollar-war-currency-usd-dominance-china-yuan-economy-2024-5">hard to dethrone</a> — even without competing priorities and rivalry among BRICS members."Russia wants to create an alternative to Western financial infrastructures," Barbashin said.But "there's no chance of making anything like a union or an alliance," he said.BRICS members are united in that they want to see change, he said "but there's no real strategy within BRICS aside from fancy phrases to make it work."

Putin's expanded BRICS summit proves he has friends — but risks buckling under its own contradictions

<ul class="summary-list"><li>Russian President Vladimir Putin is meeting leaders from China, India, Vietnam, and Indonesia amid heavy sanctions.</li><li>Russia seeks to end diplomatic isolation by engaging with "swing nations" beyond autocratic allies.</li></ul>Russian President Vladimir Putin is having a very social year as his country continues to wage war in Ukraine.So far, Putin has met top leaders from Asian countries including <a target="_blank" class="" href="https://www.businessinsider.com/putin-bromance-xi-jinping-display-china-remains-wary-russia-2024-5">China,</a> <a target="_blank" class="" href="https://www.businessinsider.com/russia-economy-india-modi-putin-hug-west-isolation-big-blow-2024-7">India,</a> <a target="_blank" class="" href="https://www.businessinsider.com/vietnam-russia-putin-visit-us-wary-manufacturing-supply-chain-diplomacy-2024-6">Vietnam,</a> and <a target="_blank" class="" href="http://en.kremlin.ru/events/president/news/74678">Indonesia.</a> That's plenty of publicity for a heavily sanctioned individual from a country facing sweeping trade restrictions.And there's a strategic reason for all those meetings, Sean McFate, an adjunct professor at the Syracuse University Maxwell School of Citizenship and Public Affairs, told Business Insider.Russia is trying to emerge from diplomatic isolation and is looking to forge strategic relationships beyond autocratic partners like China, North Korea, and Iran, McFate said."Putin is eyeing strategic swing nations like India, which opposes China and trades with Russia," he added. "That gives Russia some advantage over China, as their relationship has chilled somewhat."On Wednesday, Putin rubbed shoulders with <a target="_blank" class="" href="https://www.bernama.com/en/news.php?id=2336886">Malaysian Prime Minister</a> Anwar Ibrahim in Russia. The two countries were set to discuss a range of issues, including trade and investment.This meeting came on the heels of Putin's trip to <a target="_blank" class="" href="https://www.businessinsider.com/mongolia-explained-oil-why-didnt-arrest-putin-2024-9">Mongolia,</a> where he met President Ukhnaagiin Khürelsükh.Mongolia, as a member of the International Criminal Court, should have <a target="_blank" class="" href="https://www.businessinsider.com/putin-visiting-mongolia-icc-arrest-warrant-could-arrest-unlikely-expert-2024-8">arrested Putin,</a> who has an ICC arrest warrant against him.But the East Asian nation said it couldn't throw Putin in jail because it depends on Russia — an oil and gas giant — for its energy security."This supply is critical to ensure our existence and that of our people," a Mongolian government spokesperson told <a target="_blank" class="" href="https://www.politico.eu/article/mongolia-failure-arrest-vladimir-putin-international-warrant-international-criminal-court/">Politico.</a><h2 id="f0d1f4e5-36a9-4e82-ba4c-d30ab06a9d6a">It's about neutrality — and the economy</h2>Mongolia's explanation underscores the scale of Russia's economy. It's the 11th largest in the world and has an annual GDP of about $2 trillion, according to the <a target="_blank" class="" href="https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?most_recent_value_desc=true">World Bank.</a>While Russia's economy pales in comparison to the US' $27.4 trillion GDP, Russia is still an important partner for many developing economies.In particular, <a target="_blank" class="" href="https://www.eia.gov/tools/faqs/faq.php?id=709&amp;t=6.">Russia</a> accounts for about one-tenth of the world's oil production, making it an important resource supplier.Before its full-scale invasion of Ukraine, Russia's single largest trading partner was the European Union.In the last two years, Russia has managed to pivot to supplying <a target="_blank" class="" href="https://www.businessinsider.com/russia-economy-divert-oil-exports-europe-india-china-circumvent-sanctions-2023-12">China and India,</a> as well as nearly anyone who wants to buy discounted energy, be it <a target="_blank" class="" href="https://markets.businessinsider.com/news/commodities/sri-lanka-source-crude-oil-imports-russia-sanctions-fuel-shortage-2022-10">Sri Lanka</a> when it was in an economic meltdown just two years ago or <a target="_blank" class="" href="https://www.reuters.com/business/energy/turkey-saves-2-bln-russian-oil-imports-soar-despite-sanctions-2023-12-18/">Turkey</a> — a NATO member and aspiring EU member.While some countries, like China and Vietnam, have historical ties with Russia, others, like India and Sri Lanka, have also cited economic self-interest for their ongoing relationship with Russia — particularly if they're in difficult conditions themselves. Most, if not all of them, have also taken a neutral position on the war in Ukraine.Serik Zhumangarin, Kazakhstan's deputy prime minister, told <a target="_blank" class="" href="https://www.bloomberg.com/news/articles/2024-08-16/kazakhstan-will-not-blindly-follow-sanctions-on-russia-official-says">Bloomberg</a> last month that the country would no longer "blindly follow the sanctions" if the restrictions impact the country's key companies. Russia was Kazakhstan's largest trade partner before the war started.He told the media outlet that some of the sanctions against Moscow had hurt Kazakhstan more than Russia, and the West has done nothing to compensate the Central Asian nation.Using the economy to explain cozy diplomatic relationships with Russia appears to be gaining favor now that the Ukraine war is in its 31st month.After all, Russia is a <a target="_blank" class="" href="https://www.businessinsider.com/russia-resilience-sanctions-costly-unattainable-isolate-large-globally-integrated-economy-2024-2">large and globally integrated economy</a> that even the <a target="_blank" class="" href="https://www.businessinsider.com/russia-economy-lng-natural-gas-exports-europe-price-asia-2024-8">European Union</a> is still trying to decouple from.Even China, which in 2022 declared its friendship with Russia as a partnership with "no limits," now appears to be more keen on presenting the relationship in more pragmatic, businesslike terms.Just last month, <a target="_blank" class="" href="https://www.fmprc.gov.cn/chn/gxh/tyb/zyxw/202408/t20240821_11477597.html">China framed</a> Vice Premier Li Qiang's visit to Russia as one that seeks "complementary advantages and huge potential for practical cooperation" between Moscow and Beijing.<h2 id="1d83462f-51a7-4e76-82db-0f7f3244cb44">Russia is wooing the Global South</h2>Partnering with Russia on economic terms is unlikely to alarm the US and Europe, even if there are <a target="_blank" class="" href="https://www.state.gov/briefings/department-press-briefing-july-8-2024/">concerns</a> and <a target="_blank" class="" href="https://www.reuters.com/world/asia-pacific/us-rebukes-vietnam-ahead-expected-visit-by-russias-putin-2024-06-17/">strong criticism.</a>"Russia's foreign policy blitz is unlikely to be a threat to the EU and NATO," Syracuse University's McFate said.That's because Moscow is not making military alliances with partner countries to attack Europe, which views Russia as its top threat, he said. For the US, Russia is a distant second after China.Even so, there still may be changes afoot.Moscow is pushing a narrative of the Global South as a force in shaping an alternative world order, with the emerging nations of <a target="_blank" class="" href="https://www.businessinsider.com/brics-summit-countries-interested-brazil-russia-india-china-south-africa-2023-8">BRICS</a> — anchored by Brazil, Russia, India, China, and South Africa — forming an economic bloc.Russia is the BRICS chair this year, and Putin has invited Mongolia to join the group's summit in October. Malaysia applied to join the group, and <a target="_blank" class="" href="https://en.antaranews.com/amp/news/324871/joining-brics-based-on-president-elect-prabowos-decision-minister">Indonesia</a> is also considering an invitation to join the bloc. <a target="_blank" class="" href="https://www.reuters.com/world/middle-east/no-concrete-step-turkey-brics-membership-erdogans-party-says-2024-09-03/">Turkey</a> has also said it's interested in joining the group. "Indonesia, Malaysia, and Mongolia are an interesting test of those nations' 'neutrality' toward China, the US, international law (e.g., ICC), and the authority of the United Nations system," McFate said.Russia's push for a multipolar world order resonates with countries who desire a more equitable international order. And Moscow has shown it does have influence over lower- and middle-income countries, as evidenced by the non-participation or low-level participation of some Asian countries in June's Ukraine peace summit in Switzerland, Derek Grossman, a senior defense analyst at RAND, a think tank, wrote in a July <a target="_blank" class="" href="https://www.rand.org/pubs/commentary/2024/07/russia-is-a-strategic-spoiler-in-the-indo-pacific.html">commentary</a> for Foreign Policy."While Russia's sway is not at the level of China's or the United States', it is certainly enough to promote its anti-Western interests and disrupt the already precarious regional order," wrote Grossman.Countries around the world are weighing the dynamics."Regional allies will watch with interest to see if great powers can be played off each other," McFate said.

More countries are openly flaunting their ties with Putin. They say it's just business. 

<ul class="summary-list"><li>A spokesperson for Turkey's ruling party said that a process was "underway" for Turkey to join BRICS.</li><li>The current BRICS bloc of emerging-market nations includes countries such as Russia, China, and Iran.</li></ul>Earlier this month, a spokesperson for Turkey's ruling AK Party <a target="_blank" class="" href="https://www.reuters.com/world/middle-east/no-concrete-step-turkey-brics-membership-erdogans-party-says-2024-09-03/">said</a> that a process was "underway" for <a target="_blank" class="" href="https://www.businessinsider.com/category/turkey">Turkey</a> to join the BRICS group of emerging-market nations."Our president has stated at various times that we want to be a member (of BRICS)... Our request on this issue is clear. This process is underway in this framework, but there is no concrete development on this," Omer Celik told reporters in Ankara, the Turkish capital, per Reuters.The BRICS group, named after members Brazil, Russia, India, China, and South Africa, was formed to challenge the political and economic power of developed Western nations.Since its first informal meetings in 2006, when it was known as just BRIC, the bloc has grown to include Ethiopia, Iran, Egypt, and the United Arab Emirates. Saudi Arabia was also invited to join, but a Saudi official said in January it had yet to do so.Should Turkey now join the bloc, it would become its first NATO member and EU candidate, potentially complicating ties with the West and raising questions over Turkey's commitment to the military alliance.Turkey's relationship with NATO has already come under strain due to the country's continued <a target="_blank" class="" href="https://www.businessinsider.com/russia-economy-asia-countries-flaunt-russia-putin-diplomacy-relationship-brics-2024-9">ties with Russia</a> in the <a target="_blank" class="" href="https://www.businessinsider.com/turkey-erdogan-play-both-sides-peacemaker-ukraine-war-russia-putin-2024-7">wake of the latter's invasion of Ukraine</a>, as well as its efforts to <a target="_blank" class="" href="https://www.businessinsider.com/china-muslim-oppression-xinjiang-turkey-silence-2019-7">seek improved relations with China</a>.Such moves seem to reflect Turkish President Tayyip Erdoğan's desire to establish the country's independence through shifting foreign policy. He now appears to be seeking to maintain what experts have dubbed a "balancing act" between its relations with the West, Russia, and China."Turkey is seeking alternatives. It does not want to leave its NATO membership. It does not want to shed its European aspirations. But it wants to diversify its set of alliances, hedge its bets, so to speak," Asli Aydintaşbaş, a visiting fellow in the Center on the United States and Europe at the Brookings Institution, told <a target="_blank" class="" href="https://www.france24.com/en/europe/20240905-nato-member-turkey-balancing-act-brics-bid-russia-china">France 24</a>. "It no longer sees its NATO membership to be the sole identity, its sole foreign policy orientation."Aydintaşbaş said that Erdogan saw successful strategy as having "a foot in different camps," adding that he wanted to "be able to play off the West against Russia, the West against China.""I think that he has come to skillfully play this geopolitical act," she said, but noted that he had sometimes pushed his "geopolitical balancing" too far.One particular flash point came when Turkey acquired the <a target="_blank" class="" href="https://www.businessinsider.com/turkey-may-soon-deploy-controversial-russian-s-400-air-defenses-2024-4">Russian S-400 air-defense system</a> in 2019, instead of NATO-made equivalents.In 2020, the US <a target="_blank" class="" href="https://2017-2021.state.gov/the-united-states-sanctions-turkey-under-caatsa-231/">said</a> it had repeatedly made it clear to Turkey that the purchase of the S-400 system "would endanger the security of U.S. military technology and personnel and provide substantial funds to Russia's defense sector, as well as Russian access to the Turkish armed forces and defense industry."Turkey's decision to push ahead with the deal eventually led to it being kicked out of the US's F-35 program, as well as a number of US sanctions.Nevertheless, Bulent Aliriza, a senior associate of the Europe, Russia, and Eurasia Program at the Center for Strategic and International Studies (CSIS), told BI that he did not think that BRICS was "going to compete with NATO and with Turkey's other Western links.""But it is a statement of, I would say, unhappiness with some aspects of their relationship with the West," he said. "Even if Turkey does join BRICS, I do not believe it is going to lead to a fundamental redefinition of Turkey's relationship with the West."Yusuf Can, the Coordinator for the Middle East Program at the Wilson Center, has also <a target="_blank" class="" href="https://www.wilsoncenter.org/article/turkeys-balancing-act-navigating-nato-brics-and-other-global-partnerships">argued</a> that Turkey's "strategic diversification should not alarm NATO allies," saying that they "could benefit from a partner" in such circles."Understanding and collaborating with Turkey's perspective can enhance US and NATO relations with Turkey, irrespective of potential administrative changes in Ankara," Can wrote in an article for the Wilson Center.Can noted that an improved US-Turkey partnership could also help secure crucial strategic regions, such as the <a target="_blank" class="" href="https://www.businessinsider.com/russian-attack-ukraine-shows-black-sea-fleet-dangerous-despite-losses-2024-8">Black Sea — which has been at the center of the Russia-Ukraine war</a>."Economically, strengthened US-Turkey relations can benefit the EU by fostering investments in new trade routes," Can added.Aliriza agreed that the West could find a way to benefit from the situation.Speaking about Turkey's potential BRICS membership, Aliriza told BI: "It doesn't necessarily have to become a problem for the West, but it can, in fact, benefit the West if Turkey and its Western partners can have an open and honest dialogue about how to move forward.""It still remains a member of the Council of Europe. Most of its trade is still with the West. And in terms of investment, although there's been a lot of speculation that there might be Chinese investment in Turkey, most of the foreign investment in Turkey, either FDI or short-term funds coming in seeking profit from high interest rates, has come from the West," he said.For its part, the US has remained relatively quiet following the news that Turkey's BRICS ambitions may be inching forward, which Aydintaşbaş said was likely a savvy move aimed at avoiding a public dispute."Washington is keeping quiet," she told France 24. "It does not want a public, high-profile spat with Turkey, and it knows that President Erdogan is unpredictable."The BRICS group is set to hold a summit in Kazan, Russia, from October 22 to 24.

Turkey's 'balancing act' with BRICS may stoke NATO fears, but the West needn't be too worried, analysts say

<ul class="summary-list"><li>Russia is proposing alternative payment systems and commodity centers.</li><li>The proposal aims to strengthen BRICS economies' sovereignty and reduce dollar reliance.</li></ul>Russia has released new details on how it could move away from the dollar, part of a long-running effort to buoy trade amid Western sanctions.Earlier this month, Russia's Finance Ministry, its central bank, and Moscow-based consultancy Yakov &amp; Partners outlined the country's vision of what the country is aiming for in a <a target="_blank" class="" href="https://www.yakovpartners.com/publications/imfs/">report.</a>Other than championing <a target="_blank" class="" href="https://www.businessinsider.com/dedollarization-russia-actively-working-brics-local-currencies-platform-us-dollar-2024-6">alternative payment</a> systems based in non-dollar currencies, Russia is also pitching the set-up of centers for mutual trade in commodity resources.Russia is a commodity giant and a major producer of oil, natural gas, gold, and grains. However, the country has been heavily sanctioned by the US following its full-scale invasion of Ukraine, which has impacted its oil and gas trade.The report proposed setting up foundations for commodity trading centers but did not provide details. However, it explained why it was a good idea."This measure will ensure independent pricing and strengthen the sovereignty of the BRICS economies," the report said, referring to Brazil, Russia, India, China, and South Africa — the anchor members of the BRICS emerging markets group.Such a measure would add to what Russia is already doing to keep trade humming amid sweeping sanctions, such as those that block banks from dealing with <a target="_blank" class="" href="https://www.businessinsider.com/russia-economy-all-china-banks-refuse-yuan-ruble-transfers-sanctions-2024-8">payment transactions</a> involving Russian companies.Another offbeat way Russia is beating sanctions is <a target="_blank" class="" href="https://www.businessinsider.com/russia-barter-pakistan-mounting-sanctions-western-war-allies-international-trade-2024-10">barter trade. </a>One Russian company struck an agreement to trade chickpeas and lentils for tangerines, rice, and potatoes from Pakistan, according to Tass state news agency earlier this month.Such alternative payment systems and bartering "are based on a notion that any involved institutions, even if faced with extraterritorial restrictions, will retain unchallenged access to their domestic market that will allow them to effectively facilitate domestic and cross-border transactions," the report said.Moving BRICS trade to trading centers within the bloc would also involve the use of local currencies and facilitate a move away from using the dollar for trade, according to the document.Russia's report on alternative payments and trading systems came weeks before the annual BRICS summit, which will be held in the Russian city of Kazan from October 22 to October 24.The proposal also came months after Russia proposed a grain-trading exchange for BRICS members, as <a target="_blank" class="" href="https://interfax.com/newsroom/top-stories/101594/">Interfax</a> news agency reported in April.BRICS member countries are <a target="_blank" class="" href="https://www.usda.gov/oce/commodity/wasde/wasde1024.pdf">major producers and exporters</a> of grains in the world market, with Russia accounting for about one-quarter of the world's wheat exports. Meanwhile, Brazil accounts for about 60% of the world's soybean exports, and India accounts for about 40% of the world's rice shipments.Most global grain prices are set on the Chicago Mercantile Exchange and are dominated by the US dollar."The BRICS countries, being key participants in the global grain market, cannot fully participate in the formation of prices for economically fundamental and food security-essential products as wheat, barley and corn, world prices for which are formed, and often manipulated, in third countries," Russia's Union of Grain Exporters wrote in a letter to the country's Agriculture Ministry in December when it proposed a BRICS grain exchange.Russia faces an uphill battle in changing the basics of dollar-dependent financial trading systems. Right now, dollar-based trade participants can easily enter and exit their positions, whereas bartering or using other currencies could reduce liquidity and flexibility.Since there's already heavy trading in CME's grain markets, it would be challenging for new exchanges and their products to lure participants over en masse.Brent crude oil futures, for example, are still the world's benchmark and are actively traded. However, their namesake <a target="_blank" href="https://www.shell.co.uk/about-us/sustainability/decommissioning/brent-field-decommissioning/brent-field-decommissioning-programme.html">Brent oil fields</a> in Scotland are being decommissioned due to resource depletion.As the <a target="_blank" class="" href="https://www.imf.org/External/Pubs/FT/GFSR/2015/02/pdf/c2_v2.pdf">International Monetary Fund</a> explained in a 2021 report, "because of the network nature of markets, effects tend to be self-reinforcing— high market liquidity tends to attract more traders and so forth."

Russia pitches trading centers in a widening plan to move away from the US-dominated global financial order 

<ul class="summary-list"><li>Russia and China could revive barter trade to counter Western sanctions, Reuters reported.</li><li>Other countries that have looked at barter trade with Russia include Afghanistan, Iran, Pakistan, and India.</li></ul>Russia and China are planning to revive the age-old practice of barter trade to get around Western sanctions, <a target="_blank" class="" href="https://www.reuters.com/markets/first-russia-china-barter-trade-may-come-this-autumn-sources-say-2024-08-08/">Reuters</a> reported on Thursday.The deals could involve agriculture and could come as soon as this fall, the news agency reported, citing anonymous trade and payments sources. One source at a Russian industrial firm told the news agency that Russian firms were also talking about the exchange of metals for Chinese machinery imports.Such arrangements are being discussed as trade between the two countries has become increasingly difficult amid tightening Western sanctions against Russia over its full-scale invasion of Ukraine in February 2022.Recently, about 80% of bank transfers made in the Chinese yuan were <a target="_blank" class="" href="https://www.businessinsider.com/russia-economy-china-yuan-payments-delay-months-bounce-back-sanctions-2024-7">bouncing back</a> with no explanation after being stalled for weeks while banks decide whether they could transact, Russian media outlet Kommersant reported last month.Before this year, Russia and its trade partners skirted sanctions by using smaller banks and other payment modes or non-US dollar currencies to circumvent the West's ban of <a target="_blank" rel="noopener noreferrer" class="c-link" href="https://www.businessinsider.com/us-eu-announce-some-russian-banks-removed-from-swift-2022-2">some Russian banks</a> from the widely used SWIFT messaging system.However, this strategy has been hitting snags since the US approved <a target="_blank" rel=" nofollow" href="https://www.reuters.com/world/us/us-takes-aim-financial-institutions-with-new-russia-sanctions-authority-2023-12-22/">secondary sanctions</a> targeting financial institutions that were helping Russia. These restrictions prompted <a target="_blank" rel="" class="" href="https://www.businessinsider.com/russia-economy-financial-system-us-sanctions-oil-trade-foreign-banks-2024-3">global banks</a> from <a target="_blank" rel="" class="" href="https://www.businessinsider.com/china-biggest-banks-stop-russia-payments-icbc-ccb-boc-2024-2">China </a>to the United Arab Emirates, Turkey, and Austria to reduce transactions with Russia.Since barter trade doesn't require monetary payments, it would allow Russia and China to skirt such issues.<h2 id="4ef98aff-cc26-4454-855d-f1ccddf1c7c0">Russia has used barter trade before</h2>It would not be Russia's first time using barter trade.It was practiced during the <a target="_blank" rel=" nofollow" href="https://www.joc.com/maritime-news/soviet-union-allows-return-barter-some-trading-deals-partners-former-e-bloc_19910708.html">Soviet era</a> and <a target="_blank" rel=" nofollow" href="https://www.nytimes.com/1998/09/06/world/as-ruble-withers-russians-survive-on-barter.html">in the years following the bloc's collapse.</a> At the time, China was a key trading partner.In August 2022, the <a target="_blank" class="" href="https://www.businessinsider.com/taliban-import-russia-oil-barter-exchange-afghanistan-raisin-minerals-medicine-2022-8">Taliban regime in Afghanistan</a> also discussed barter trade with Russia that could involve trading Russian crude oil products in exchange for raisins, minerals, and medicinal herbs, according to RIA Novosti, a Russian state-owned news agency.Heavily-sanctioned <a target="_blank" class="" href="https://www.reuters.com/business/energy/russia-iran-discuss-swapping-supplies-oil-gas-goods-logistics-2022-05-25/">Iran</a> and the <a target="_blank" class="" href="https://timesofindia.indiatimes.com/india/india-plans-barter-for-russian-fertiliser/articleshow/91750978.cms">Indian government</a> were also in talks with Russia to practice barter trade in the early months of the Ukraine war.Last year, cash-strapped <a target="_blank" class="" href="https://www.voanews.com/a/pakistan-allows-barter-trade-with-iran-afghanistan-russia-/7120806.html">Pakistan</a> authorized the barter trade of specific goods with Russia.It's unclear if any of the parties eventually entered into any barter deal with Russia.Major economy India, for one, has managed to work around payment issues to become one of Russia's <a target="_blank" class="" href="https://www.businessinsider.com/russia-economy-divert-oil-exports-europe-india-china-circumvent-sanctions-2023-12">key trading partners.</a><h2 id="a4ac3f71-bfea-4e2c-bbc1-8c442e62804f">Problems with barter trade</h2>Even so, barter trade isn't widely practiced in modern society."Exchanging goods for other goods would have to be manually accounted for, which would create major difficulties for any large or technologically advanced businesses using automated accounting systems," wrote Alexandra Prokopenko, a fellow at <a target="_blank" class="" href="https://carnegieendowment.org/russia-eurasia/politika/2022/09/bartering-cryptocurrencies-and-yuan-russia-seeks-alternatives-to-trading-in-dollars">the Carnegie Russia Eurasia Center,</a> in a September 2022 blog post.Barter trade also makes it difficult for tax collection, she added.Russian authorities are working on other ways to skirt Western payment sanctions.The country is rushing to set up <a target="_blank" class="" href="https://www.businessinsider.com/russia-economy-moscow-cryptocurrency-bill-digital-ruble-trade-payments-sanctions-2024-7">alternative payment systems, </a>including crypto, to facilitate trade.

You Searched For "INDIA bloc partners" and got 12 results

West Bengal Elections: Rift among INDIA bloc partners triggers three-cornered intense contests

PTI

Economic implications of Lok Sabha Election 2024 results: Would lack of a clear majority for BJP impact India’s growth story?

BI India Bureau

India, Israel agree to strengthen bilateral ties

PTI

Rajnath Singh reaches Russia for SCO meet under shadow of India-China border row

PTI

Japan indicates efforts on to address India's concerns over RCEP

PTI

RCEP did not address outstanding issues, concerns of India: Goyal

PTI

A slowdown in the Eurozone points to doom for India's ailing exports

Dilsher Dhillon

Putin's expanded BRICS summit proves he has friends — but risks buckling under its own contradictions

Thibault Spirlet,Huileng Tan

More countries are openly flaunting their ties with Putin. They say it's just business.

Huileng Tan

Turkey's 'balancing act' with BRICS may stoke NATO fears, but the West needn't be too worried, analysts say

Rebecca Rommen

Russia pitches trading centers in a widening plan to move away from the US-dominated global financial order

Huileng Tan

Western sanctions are so tight that Russia and China could soon use an ancient trading system. It's worked before.

Huileng Tan

Popular Keywords

Buying Guides