'CHINA A WORLD FACTORY, BUT THAT'S A RISK'

In the latest edition of Delhi Dialogues, Dammu Ravi, secretary (economic relations), Ministry of External Affairs, discusses the emerging international challenges for India in the face of increasing tensions involving global powers.

- Dammu Ravi

• India's BRICS sherpa Dammu Ravi explains the country's emerging challenges in the 19th edition of Delhi Dialogues

Ravi is also India's BRICS sherpa. Excerpts:

Santwana Bhattacharya: Give us an omniverse idea summing up BRICS appearing to change the axis of world order, the primacy of Bretton Woods, Trump's likely new tariff regime and its unprecedented effect, Europe staring at a gradual eclipse and West Asia in turmoil.

The BRICS summit in Kazan was successfully pulled off by Putin. He used the occasion to project his profile, given that there are tensions around the world in which he is directly involved, including in Ukraine. Four of the new BRICS members are very close to the West Asian crisis. In the first close session in Kazan, political and strategic issues were discussed. The open session was on industry and business. A lot of economic issues, including the issue of currency came up, including de-dollarization.

But purely in terms of BRICS and its weight, my view is that BRICS will have a role. At least 34 more countries across Latin America, Africa and Asia have expressed interest to be members of the BRICS. Out of 34, 13 have now become partner countries.

Many doubts have been raised about the stature of BRICS -- there is G20, and G7. The BRICS is seen to be a China-Russia-led group. BRICS is not in competition with G20 and G7. An attraction for many countries (to join BRICS) is the NDB (National Development Bank). Since the time the Bretton Woods institutions created the multilateral development banks, and the conditionalities that are attached to providing assistance to countries, countries are even more indebted. So, they are looking at alternatives. The NDB is a good attraction.

One of the other interesting discussions happening in BRICS is the trade settlement in national currencies. It's already happening -- China is doing most of its trade in the Yuan.