'BRICS is an important factor in world economy': PM

Prime Minister Dr. Manmohan Singh on Saturday said BRICS is an important factor in the world economy because China, Russia, South Africa, Brazil and India together command a significant proportion of the GDP and trade of the world, and therefore, whatever happens inside or to the development process in these countries has an influence all over the world.

"I mentioned that as concrete acts the BRICS countries have agreed to a 100 billion dollar currency reserve arrangement. There is also an agreement to start a BRICS bank with 50 billion dollars and the concrete proposal is now being finalized and will be brought before the next Summit of the BRICS," Dr. Singh told media when asked about the role BRICS is playing in the world economy and India's contribution to it.

The BRICS leaders met ahead of the formal opening of the G20 Summit in St Petersburg earlier on Thursday and took note of the high unemployment in some countries and the on-going challenges and vulnerabilities in the global economy, particularly in advanced economies.

According to a statement issued by the Ministry of External Affairs (MEA), the BRICS leaders reiterated their concerns they had expressed in the Durban Summit in March, regarding the unintended negative spillovers of unconventional monetary policies of certain developed economies. They emphasized that the eventual normalization of monetary policies needs to be effectively and carefully calibrated and clearly communicated.

The leaders believed that major economies, including G20, could do more to boost global demand and market confidence.

The BRICS leaders also expressed their concern over the stalling of the International Monetary Fund reform process.