The July 2015 edition of the Multilateral Newsletter highlights the importance of India’s engagement in BRICS, the key areas of cooperation and the strategies that can be adopted to deepen the economic and trade relations within the BRICS countries. In addition, the newsletter also covers some of the key happenings and highlights from the reports from the World Bank (WB), Asian Development Bank (ADB) and the World Trade Organization (WTO).

1. 1Multilateral Newsletter
this IssueInside
Focus Story
BRICS and Beyond...............................................................2
WORLD BANK
World Bank Approves $650 Million for the Eastern
Dedicated Freight Corridor Project, India.................................4
Government of India and World Bank Sign $250 Million
Project for Disaster Recovery in Andhra Pradesh..................4
July 2015, Volume 3, Issue 6
Message from Mr Chandrajit Banerjee, Director General, CII
BRICS countries are an important trading partners of India. India’s export to China, Brazil,
Russia and South Africa has reached approximately upto US$28.5 billion while imports
from these close to US$ 28.5 billion in 2014. During 2003-2015, Indian Companies have
also invested US$23.32 billion in other BRICS countries which has created about 74,723
employment opportunities in the recipient economies. Brazil, Russia, China and South Africa
together have also invested around $22.12 billion and created 79,156 jobs in India.
BRICS today represents much more than merely an investment narrative, this group now has significant
political and economic dimension. The BRICS initiative aims to strengthen South-South engagement, provide
unique avenue to advance the regional and global strategic interests and offer new investment vehicles to
the member countries. There lies a need to explore new areas towards a comprehensive cooperation and a
closer economic partnership to facilitate market inter-linkages, financial integration, infrastructure connectivity
as well as people-to-people connectivity.
The focus story of this edition provides an insight towards the opportunities and the challenges that exist
within the BRICS economies. In addition, it also covers some of the key happenings at the World Bank (WB),
Asian Development Bank (ADB) and the World Trade Organization (WTO).
Chandrajit Banerjee
Multilateral
ADB
ADB Trims Growth Forecasts for Asia on Slower US,
PRC Economies�������������������������������������������������������������������������5
WTO
Slight deceleration in trade restrictive steps in G-20: WTO������9
NEWSLETTER

2. 2 Multilateral Newsletter
More than a decade after the acronym BRICS was coined by Goldman Sachs to represent Brazil, Russia, India,
China, and South Africa, BRICS - today signifies the collective economic power of the world’s leading emerging
market economies. Today, BRICS accounts for more than a quarter of the world’s land mass, 41% of the world’s
population, and a combined GDP of nearly US$ 16 trillion in nominal terms and US$ 37.4 trillion (in PPP terms).
The common feature that binds these countries is their large fast growing economies.
India attaches importance to its engagement with BRICS. Apart from the Prime Ministers, India has participated
in all the BRICS Meetings of Foreign Ministers, Finance Ministers, Agriculture Ministers, Trade Ministers, Health
Minsters, High Representatives on Security, Business Forum, etc.
BRICS countries are now important trading partners of India. India’s export to China, Brazil, Russia and South
Africa has reached US$28.5 billion in 2014 while India’s import from them was close to US$74 billion. The main
products of Indian exports to BRICS include Mineral fuels, oils, distillation products, Cotton, Copper and articles
Organic chemicals, Vehicles other than railway, tramway, Machinery, nuclear reactors, boilers, Pharmaceutical
products, Ores, slag and ash, Salt, Sulphur, earth, stone, plaster, lime and cement and many more.
During 2003 – 2015, Indian companies have invested US$23.32 billion in other BRICS countries which has created
about 74,723 jobs in the recipient economies. Brazil, Russia, China and South Africa together have also invested
about $22.12 billion and created 79,156 jobs in India. The $100 billion New Development Bank is a major
milestone much as with Mr K V Kamath, the veteran Indian banker, becoming the first President. Investment
flow into India would increase with the coming advent of the BRICS bank.
The infrastructure financing deficit in developing countries is estimated to be $1 trillion annually. For India and
South Africa, the BRICS Bank promises to be a welcome source of much-needed infrastructure financing. Countries
will be more benefited by the BRICS bank as they would have access to funding at more favourable terms.
The leaders from BRICS countries met on 9 July 2015 in Ufa, Russia at the Seventh BRICS Summit themed
‘BRICS-Partnership- a Powerful Factor for Global Development’ with an aim to strengthen BRICS solidarity and
cooperation, and further enhance partnership on basis of principles of openness, solidarity, equality and mutual
understanding, inclusiveness and mutual beneficial cooperation. The Ufa Summit marked the onset of BRICS
financial institutions: the New Development Bank (NDB) and the Contingent Reserves Arrangement (CRA).
The global recovery continues, although growth remains fragile, with considerable divergence across countries and
regions. In this context, emerging markets and developing countries continue to be the major drivers of global
growth. Structural reforms, domestic adjustments and promotion of innovation are important for sustainable
growth and provide a strong and sustainable growth and provide a strong and sustainable contribution to the
world economy. Development and security are closely interlinked, mutually reinforcing and key to attaining
sustainable peace. Establishment of sustainable peace requires a comprehensive, concerted and determined
approach based on mutual trust, benefit, equity and cooperation.
Sound macroeconomic policies, efficiently regulated financial markets and robust levels of reserves have allowed
the BRICS economies to deal better with the risks and effects presented by the challenging global economic
conditions in last few years.
Focus Story
BRICS and Beyond

3. 3Multilateral Newsletter
Peaceful coexistence of nations is impossible without universal, scrupulous and consistent application of the
generally recognized principles and rules of international law. International Law provides tools for achieving
international justice based on principles of good faith and equality.
In addition to fundamentally altering the global economic governance order, the economies today present a
spectrum of opportunities for collaboration. CII feels that the BRICS countries should deepen their economic and
trade relations. Greater cooperation with each other will help them to reinforce their position in world affairs.
These some of the key areas where the BRICS countries could work together include:
Manufacturing: Especially in the light of the “Make in India” initiative. Companies from China, Russia, Brazil•
and South Africa may like to take advantage of the liberalized FDI norms in the defence, automobile and
other sectors and step up their presence in India.
Technology Transfer: ICT are emerging as an important medium to bridge the gap between developed and•
developing countries. Technology sharing amidst the BRICS nations can be a lucrative investment for long term
development of the economies. India may offer its capacities in technology transfers in – ICT, Healthcare
pharmaceuticals, Power, Infrastructure, and HRD training. To empower and Inclusion of ICT related issues
in the post 2015 development agenda
Energy and Green Economy: The BRICS economies can work together on promotion of new technology in•
the energy sector. Clean coal technologies, coal liquefaction, know-how on alternative sources of energy,
technologies including inexpensive photo-voltaic chips and application of deep-sea technology popularization
are a few to name. The countries can collaborate closely on energy security, emissions, efficiency, and
renewable energy as well as on global discussions on mitigating climate change.
Financial services: As the financial markets in BRICS are at different stages of development, there is considerable•
scope for the BRICS to learn from each other by exchanging experts and country experiences. There is also
a need to align the licensing processes to facilitate investment in the banking sector.
Food Processing: These five countries collectively have a huge potential for addressing food security concerns•
around the globe. Governments, agri-businesses and farmer associations can collaborate to enhance the
sustainability and safety in farming practices. In addition, there is potential to exchange technology in
precision seeding, precision fertilizer, farm mechanization and installation of cold chains.
Smart Cities: With the Government of India launching its flagship “Smart Cities” project, cooperation from•
BRICS countries would be valuable in areas such as urban planning, waste management, water management
and cycling infrastructure.
The challenges faced by the BRICS economies are similar to the problems faced by emerging markets and
developing countries. Hence, it is important to strengthen the coordination and cooperation among BRICS
agencies. There lies a need for comprehensive, transparent and efficient multilateral approaches to address
global challenges. The peaceful coexistence of nations is impossible without universal, scrupulous and consistent
application of the generally recognized principles and rules of international law.
Focus Story

4. 4 Multilateral Newsletter
The World Bank Board approved $650 million towards the third loan for
the Eastern Dedicated Freight Corridor (a freight-only rail line) that will
help faster and more efficient movement of raw materials and finished
goods between the northern and eastern parts of India.
The Eastern Corridor is 1,840 km long and extends from Ludhiana to
Kolkata. The World Bank is supporting the Eastern Dedicated Freight
Corridor (EDFC) as a series of projects in which the three sections with
a total route length of 1,146 km will be delivered sequentially, but with
considerable overlap in their construction schedules.
The EDFC is part of India’s first Dedicated Freight Corridor (DFC) initiative
– being built on two main routes – the Western and the Eastern Corridors.
These corridors will help India make a quantum leap in increasing the
railways’ transportation capacity by building high-capacity, higher-speed
dedicated freight corridors along the Golden Quadrilateral. Currently, the
rail routes that form a Golden Quadrilateral connecting Delhi, Mumbai,
Chennai and Kolkata, account for 16 percent of the railway network’s route
length, but carry more than 60 percent of India’s total rail freight.
Click here for more information
The Government of India, the Government of Andhra Pradesh and the World Bank signed a $250 million credit
agreement for the Andhra Pradesh Disaster Recovery Project to restore, improve and enhance the resilience of
public services and livelihoods of communities affected by cyclone Hudhud in Andhra Pradesh. The Project will
also increase the capacity of the state to respond promptly and effectively to an emergency.
The project will specifically benefit over 13 million people in the four severely affected districts of Srikakulam,
Vizianagaram, Visakhapatnam and East Godavari.
Andhra Pradesh is one of the most natural hazard prone states in India because of its long coastline and
geographical location. About 44 percent of the state is vulnerable to tropical storms and related hazards. Out
of the total coastal length of about 974 km, about 440 km faces coastal erosion.
Click here for more information
World Bank Approves $650 Million for the
Eastern Dedicated Freight Corridor Project, India
Government of India and World Bank Sign
$250 Million Project for Disaster Recovery in
Andhra Pradesh
WORLD BANK
“Implementing the Dedicated
Freight Corridor program will
provide India the opportunity
to create one of the world’s
largest freight operations.
The corridor, which will
pass through states like
Uttar Pradesh and Bihar,
will benefit from the new
rail infrastructure, bringing
jobs and much-needed
development to some of
India’s poorest regions”
Onno Ruhl
World Bank Country Director in
India

5. 5Multilateral Newsletter
ADB
The Asian Development Bank (ADB) has cut its 2015 growth forecast
for Developing Asia to 6.1% from 6.3%, amidst slower-than-expected
economic activity in the United States (US) and the People’s Republic
of China (PRC), according to a new report.
In a supplement to its Asian Development Outlook (ADO) 2015 published
last March, ADB also projected 2016 gross domestic product (GDP) growth
for the region to come in at 6.2%, down from 6.3% forecast previously.
ADO is ADB’s flagship annual economic publication.
Ongoing softness in the major industrialized economies (US, Japan, Euro
Area) will see a slowdown in East Asia as a whole, with growth now at
6.2% in 2015, down from 6.5% forecast earlier.
After a slow first half, full-year 2015 growth in the PRC is now estimated at 7.0%, down from 7.2% previously, and
will ease further to 6.8% next year. Consumption growth in the country remains robust but investment growth
has continued to decelerate. The financial sector is also expected to contribute less to growth after the recent
stock market correction, although the drop in stock prices is unlikely to have much impact on consumption,
the report said.
In India, growth forecasts remain unchanged at 7.8% in fiscal year (FY)2015 and 8.2% in FY2016, supported by
a healthy monsoon and new investments. South Asia as a whole is now expected to grow 7.3% in 2015, up
slightly from 7.2% seen earlier, with a better-than-expected economic performance in Bangladesh balancing the
earthquake-related slowdown in Nepal. In 2016, growth for the subregion is expected to expand to 7.6%.
Click here for more information
ADB Trims Growth Forecasts for Asia on Slower
US, PRC Economies
Slower growth in the PRC is
likely to have a noticeable
effect on the rest of Asia
given its size and its close
‎links with other countries in
the region through regional
and global value chains
Shang-Jin Wei
ADB Chief Economist

6. 6 Multilateral Newsletter
The G-20 economies witnessed a slight deceleration in application of new trade-restrictive measures, with
average number of such steps imposed per month falling to the lowest since 2013, a WTO report
However, the report called for continued vigilance and reinforced determination towards eliminating the existing
trade restrictions.
G-20 economies between mid-October 2014 and mid-May 2015 implemented fewer trade-restrictive measures
per month than at any time since 2013. At the same time, the introduction of trade liberalising measures among
the G-20 members remained stable.
These positive developments confirm that G-20 economies have shown some restraint in introducing new trade
restrictions while continuing to introduce measures that facilitate the flow of trade, the WTO's 13th trade
monitoring report on G-20 trade measures said.
It has covered the period from 16 October 2014 to 15 May 2015. G-20 is a grouping of developed and developing
economies. Its members include the US, Japan, Germany, the UK, France, China and India.
The report said that despite these recent trends, it is not yet clear that the deceleration in the number of
measures introduced will continue in future reporting periods.
Therefore, continued vigilance and reinforced determination towards eliminating existing trade restrictions
remain an important priority, it added.
Trade restrictive measures include mandatory local source requirement and others.
Further, it added that the long-term trend remains one of concern with the overall stock of trade-restrictive
measures introduced by G-20 economies since 2008 continuing to rise.
Of the 1,360 restrictions recorded by this exercise since 2008, less than a quarter have been eliminated,
leaving the total number of restrictive measures still in place at 1,031. Therefore, despite the G-20 pledge to
roll back any new protectionist measures the stock of these measures has risen by over 7 per cent since the
last report, it said.
The report also said that among the emerging nations, China and India have continued to outpace other major
economies.
GDP growth remained positive in China (7 per cent), Brazil (1 per cent), and India (7.8 per cent) in the second
half of last year, it said.
Slight deceleration in trade restrictive steps
in G-20: WTO
WTO
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