Prime Minister Manmohan Singh BRIC Summit

Indian Prime Minister Manmohan Singh leaves for Yekaterinburg for first BRIC Summit

When Prime Minister Manmohan Singh leaves for Yekaterinburg, in Russia, for his first visit abroad in his second term tomorrow afternoon, he will take two significant steps. He will attend the first-ever summit meeting of the BRIC countries — the phrase that caught on after Goldman Sachs portrayed a rosy future for the four developing economies of Brazil, Russia, India and China — as well as the summit of the Shanghai Cooperation Organisation, or SCO.

After joining SCO, the regional security bloc, as an observer in 2005, India chose to participate in its meetings through the external affairs minister, the petroleum minister and the minister of state in the Prime Minister’s Office. Singh once explained that he would not take part in SCO summits because he was unwilling to sip a cup of coffee outside while others deliberated behind closed doors. But he seems to have changed his mind after Russia pushed through a change in the organisation’s rules, allowing fuller participation for observers. It is the first time that observers will participate in full-scale discussions, including restricted meetings.

“It is a measure of how important we think SCO is that the Prime Minister is going himself, also because we think it is particularly important that regional cooperation in Asia should be encouraged at a time when the world economy is under considerable stress and when there are major issues which need to be discussed at the summit level,” Foreign Secretary Shivshankar Menon said on Friday.

The two meetings in the Ural Mountains city on Tuesday are being keenly watched for, other than signs of policy shifts, how the BRIC nations may treat the US dollar in the future.

According to reports, Russian President Dmitry Medvedev may reprise Russia’s call for a new global reserve currency to augment the dollar. Voices have emanated from BRIC leaders in the recent past that the soaring US budget deficit could spur inflation and weaken the dollar.

Russia, China and Brazil recently announced their intention to invest in International Monetary Fund bonds to diversify their dollar-heavy currency reserves. IMF bonds are denominated in Special Drawing Rights, or SDRs, an artificial currency used by IMF. As Menon pointed out, the BRIC nations account for 25.9 per cent of the total land area of the world, 40 per cent of the global population, and about 40 per cent of the world’s GDP as well. China is Washington’s biggest foreign creditor, holding an estimated $1 trillion in US government debt.

However, it should come as no surprise if the BRIC meeting does not result in specific measures because the four are only united by the fact that they are among the fastest growing economies and by their desire to play a greater role on the world stage.

BRIC Business

Russia and India Sign Agreement to Work Closer Together Economically

In an attempt to work closer together after years of cool relations, Russia and India signed a pact concerning economic trade and cooperation.

A major deal involved building of nuclear reactors by Russia for India to use for energy.

“The signing of the agreement on civil nuclear cooperation with Russia marks a new milestone in the history of our cooperation in the field of nuclear energy,” Indian Prime Minister Manmohan Singh said in New Delhi after talks with Russian President Dmitry Medvedev.

The two countries have a goal of increasing trade to about $10 billion by 2010, while working on improving relations that have been strained since the collapse of the Soviet Union.

In reference to military related items, the two countries signed deals for the sale of 80 helicopters to India, worth over $1 billion according to the state arms selling agent and CEO of Rosoboronexport, Anatoly Isaikin.

Russian President Dmitry Medvedev, said he hopes to extend the accord to 10 years, while working with India to develop and produce missiles and aircraft jointly.

Other partnerships would include working together on metals, space, machine building, pharmaceuticals, nuclear powered submarines, biotechnology and information technology.

India to Open Seattle, Atlanta Consulates in 2009

According to Indian Prime Minister Manmohan Singh there will be two new consulates opened in the U.S. in 2009; one in Seattle and another in Atlanta.

Along with its Washington, D.C. embassy, India has consulates in New York, Chicago and Houston.

All of this is to increase awareness of opportunities to do business in India throughout the U.S.