BRICS rising, G7 losing ground? Putin, PM Modi highlight shifting global economic power

Prime Minister Narendra Modi and Russian President Vladimir Putin on Friday highlighted the growing economic and strategic importance of BRICS as they addressed the Leaders' Session of the BRICS Business Forum in New Delhi, with both leaders pointing to the bloc's increasing contribution to the global economy.

Speaking at the forum, Putin said the world was going through "structural, deep, profound shifts", with emerging economies increasingly driving global growth. "Right now, the world is undergoing structural, deep, profound shifts.

It is explained by the fact that the so-called old leaders, which used to be the vanguard of economic growth in the second half of the 20th century, are being replaced by new engines of growth," Putin said. He added that the traditional economic powers still retained major advantages, including strong infrastructure, technological capabilities and scientific institutions, but said economic leadership was naturally changing.

"The world is always changing," the Russian President said. Putin also pointed to the growing share of BRICS in the global economy. He said that over the past five years, BRICS countries had accounted for more than 40 per cent of the world's GDP, compared with 29 per cent for the G7.

"Speaking about the growth of the world economy over the same period, we see that more than half of that growth has been accounted for by BRICS, whereas the G7 has only accounted for 18%," Putin said. He attributed the bloc's economic momentum largely to its population and domestic markets.

"BRICS countries account for more than half of the world's population and that is why, they have a great dynamic, vibrant, domestic market," he said. Prime Minister Modi, meanwhile, said BRICS had expanded significantly since its launch in 2006 and now comprised 21 countries, including members and partner nations.

"A very warm welcome to all of you to the BRICS Business Forum. This year, we are celebrating 20 years of BRICS. When this group was launched in 2006, it comprised only four countries. Today, our family, consisting of BRICS members and partners, has grown to 21 countries," PM Modi said.

He said BRICS nations now account for 50 per cent of the world's population, 40 per cent of global GDP and more than 25 per cent of global trade. "Moreover, while global GDP has grown approximately two-and-a-half-fold over these years, the combined GDP of BRICS nations has expanded nearly four-and-a-half-fold," PM Modi said.

"In other words, the economic strength of BRICS has grown at nearly twice the pace of the rest of the world." PM Modi also highlighted the bloc's growing role in technology and innovation, saying BRICS countries were emerging as important centres for solutions ranging from grassroots initiatives to frontier technologies.

He said the business forum being hosted by India was the largest BRICS Business Forum to date. PM Modi said India's BRICS chairmanship was guided by the theme, "Building for Resilience, Innovation, Cooperation, and Sustainability".

"Over the past 12 years, India has made this mantra the foundation of its economic and trade policies," he said.