Johannesburg, Aug 20 — The Indian economy’s current low growth has consequences and implications for all BRICS nations, South African Trade and Industries Minister Rob Davies said here.
“What we have seen is that the levels of growth are not what they were a couple of years ago, and it has all kinds of consequences. So if there is lower growth in India or China or Brazil, as there is (in India), it has consequences and implications for all of us,” Davies told mediapersons at the two-day BRICS Business Council meet that ends Tuesday.
“The implications for us are that we need to strengthen and consolidate our partnerships so that we can establish a new growth trajectory in all of our countries that is mutually beneficial”, the South African minister said.
Describing the current world economic crisis as the biggest since the 1930s, Davies said the inaugural meeting of business leaders from the BRICS (Brazil, Russia, India, China and South Africa) countries was one of great importance for the Business Council established at the BRICS Summit held in Durban in March.
“One of the very important conclusions that we have come to is that we are all industrialising economies in the BRICS group. We need to promote a pattern of interaction in the area of trade which supports value-added production to each of our economies, ” he said.
BRICS trade ministers have embarked on a study on how to promote value-added products and strengthen investment relations . The trade ministers had formed the Contact Group on Economic and Trade Issues (CGETI) which will meet in November in South Africa to discuss the study, Davies said.
The South African chairperson of the Council, Patrice Motsepe, who was co-chairman of the India-South Africa CEO Forum till last year alongwith Ratan Tata, said that mutual benefit was also an important factor for the BRICS countries.
“I’m confident that in the next few year, you will see a change in the quality of trade that has been taking place between South Africa and Africa, and the rest of the BRICS countries,” Motsepe said.