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Time of India
5 days ago
- Business
- Time of India
Cross-border platforms and development finance to power BRICS+ growth: EY Report
As BRICS+ economies deepen collaboration to reshape the global financial system, three key institutional initiatives: the cross-border payments platform , the New Development Bank (NDB), and the BRICS Contingent Reserve Arrangement (CRA) are gaining strategic momentum, according to the EY Economy Watch July 2025 edition. These efforts come at a time when global trade is navigating uncertainty from geopolitical developments, evolving supply chains, and shifting trade dynamics - encouraging emerging economies to strengthen resilience and diversify their financial and trade frameworks. Explore courses from Top Institutes in Please select course: Select a Course Category Artificial Intelligence Digital Marketing Data Analytics Others PGDM Public Policy MBA Design Thinking Project Management Cybersecurity others CXO Finance Technology Healthcare Data Science healthcare Product Management Management Leadership Degree Data Science Operations Management MCA Skills you'll gain: Duration: 7 Months S P Jain Institute of Management and Research CERT-SPJIMR Exec Cert Prog in AI for Biz India Starts on undefined Get Details As of 2024, BRICS+ countries accounted for 42.5 per cent of global GDP (in purchasing power parity terms), 54.0 per cent of the global population, and 27.3 per cent of global merchandise exports. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Is it legal? How to get Internet without paying a subscription? Techno Mag Learn More Undo These milestones reflect not only the BRICS+ growing economic power but also a deepening commitment to reforming international financial and trade systems. Given current trends, the EY report stated that it expects that the BRICS+ group would account for more than 50 per cent of global GDP in PPP terms by 2030, both due to growth prospects the current members and partners and induction of additional countries into the group. Live Events DK Srivastava, Chief Policy Advisor, EY India, said, "The BRICS+ institutional initiatives are gaining traction at a time when the global economic order is undergoing realignment. These mechanisms especially the payments platform and the CRA are designed to improve financial autonomy and macroeconomic stability among BRICS+ participating nations. The New Development Bank, with its potential to deliver scale and speed in development financing, is equally critical for infrastructure-led growth." The BRICS+ payments platform, built on blockchain technology, is designed to enable cross-border transactions in local currencies. This system is expected to enhance flexibility in currency use for trade among member nations. The EY report notes that this development could foster greater financial stability, facilitate smoother trade flows, and strengthen economic resilience across participating countries. The NDB is also evolving as a major financing institution for emerging markets, particularly within the BRICS+ bloc. With a focus on competitive interest rates and development-oriented lending, the bank is well-positioned to support infrastructure growth and long-term investment flows across member nations. Another pillar of this new financial framework is the BRICS Contingent Reserve Arrangement, which offers a safety net to participating countries through currency swaps during balance of payments challenges. The CRA enhances collective financial security and provides an added layer of support to help manage external economic pressures. Once these initiatives gain momentum, they may go a long way in fostering a multilateral system of global trade, global investment and global financial flows that are comparatively lower in cost and offer complementary options to existing global arrangements. The report highlights the BRICS+ group's focus on facilitating trade in local currencies and expanding access to development financing, supporting efforts toward a more inclusive and balanced global financial architecture. While the group is not seeking to replace the US dollar's role in the global economy, these initiatives aim to broaden financial options and promote a more balanced international monetary system. As the BRICS+ grouping expands its reach, these financial innovations are expected to strengthen intra-group economic ties and support more inclusive global development. With sustained efforts to operationalise and expand these platforms, BRICS+ could emerge as a key driver of more inclusive, resilient, and sovereign-oriented global economic growth.
Time of India
30-06-2025
- Business
- Time of India
Benchmark military spending at 3% of GDP, create non-lapsable modernisation fund: EY report
India should consider benchmarking military spending at 3 per cent of GDP, creating a non-lapsable defence modernisation fund , besides incentivising domestic manufacturing , an EY report said on Monday. The June edition of EY Economy Watch highlighted the need for a forward-looking defence budgeting strategy, saying this would build a more resilient and responsive defence infrastructure, and make India better equipped to address evolving geopolitical and technological challenges. "Over the years, India's military expenditure as a share of GDP has gradually declined - from close to 3 per cent in the early 2000s to just over 2 per cent today, whereas countries like the US and Russia continue to allocate significantly higher proportions," it said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Remember Him? Sit Down Before You See What He Looks Like Now 33 Bridges Undo The EY report recommended "benchmarking defence allocations at 3 per cent of GDP, supplemented by the creation of a non-lapsable defence modernisation fund, and incentivising domestic manufacturing to unlock long-term economic growth multipliers". Going forward, there is a need to enhance the capital component of the defence budget , streamline procurement processes, and emphasise defence-related research and development. Live Events EY India Chief Policy Advisor, D K Srivastava , said, "Benchmarking defence spending at 3 per cent of GDP and operationalising a dedicated non-lapsable modernisation fund can provide the fiscal predictability required for investing in advanced technology, strengthening domestic defence manufacturing ecosystems, and driving innovation-led procurement." The 15th Finance Commission had proposed the creation of a Modernisation Fund for Defence and Internal Security (MFDIS), a non-lapsable corpus under the Public Account of India, to be financed through disinvestment proceeds, monetisation of surplus defence land, and voluntary contributions. "Although accepted in principle by the government, this fund is yet to be implemented. Reviving the proposal could provide consistent capital support, insulating critical defence investments from year-to-year fluctuations," the EY Economy Watch report said.
Time of India
29-05-2025
- Business
- Time of India
Increased capex, focus on rare earth minerals may shape India's 'Viksit Bharat' journey: EY report
In June 2023, India has identified at least 30 critical minerals taking into account its requirements for sectors like defence, agriculture, energy, pharmaceutical, and telecom. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads An increased capital expenditure and focus on rare earth minerals may shape India's Viksit Bharat journey, according to a report by EY. It suggested that policy measures must balance consumption support with increased capital India's long-term growth relies on building resilience through self-reliance in critical minerals. Critical minerals are those minerals that are essential for economic development and national June 2023, India has identified at least 30 critical minerals taking into account its requirements for sectors like defence, agriculture, energy, pharmaceutical, and has launched a National Critical Mineral Mission in 2025 to address this, but further support from both the public and private sectors will be important, EY said. Strengthening partnerships with countries rich in rare earth resources could also help reduce supply chain to the EY Economy Watch May edition, India's economic growth for 2025-26 is expected to moderate, influenced by a mix of global and domestic the EY report said India remains one of the fastest-growing major economies, supported by resilient domestic demand, easing inflation, and an accommodative monetary policy linked to prospects of revival in private per EY report analysis, global factors are largely contributing to a cautious outlook. These include continuing supply chain disruptions, the impact of recent tariff measures by the US, and broader uncertainties in global trade and geopolitical report suggests that in the near term, India may need to rely on a balanced mix of monetary and fiscal policies for sustaining the growth momentum. On the monetary front, a continuation of the ongoing rate cut cycle could provide support to consumption and the fiscal side, reviving the momentum in public investment especially the government's capital expenditure, which witnessed a moderation in growth in 2024-25, will be important to sustain economic Srivastava, Chief Policy Advisor, EY India said, "While India's medium-term prospects remain strong, current global headwinds and domestic challenges call for supportive fiscal and monetary policies. Over the long run, sectors linked to technology and clean energy will play a key role in driving sustainable growth. Building resilience through self-reliance in critical minerals, especially in rare earths, can help India move closer to its Viksit Bharat aspirations."
Economic Times
28-05-2025
- Business
- Economic Times
India to remain among fastest-growing major economies even as growth may moderate in FY26: EY
India's economic growth is expected to moderate in the current fiscal influenced by global and domestic developments and the country may need to rely on a balanced mix of monetary and fiscal policies for sustaining the growth momentum in the near term, an EY report said on Wednesday. India will remain one of the fastest-growing major economies, supported by resilient domestic demand, easing inflation, and an accommodative monetary policy linked to prospects of revival in private investment, according to the EY Economy Watch May edition. "India's economic growth for FY26 is expected to moderate, influenced by a mix of global and domestic developments," it said. As per EY report analysis, global factors are largely contributing to a cautious outlook. These include continuing supply chain disruptions, the impact of recent tariff measures by the US, and broader uncertainties in global trade and geopolitical developments. The report said that in the near term, India may need to rely on a balanced mix of monetary and fiscal policies for sustaining the growth momentum. "On the monetary front, a continuation of the ongoing rate cut cycle could provide support to consumption and investment. On the fiscal side, reviving the momentum in public investment especially GoI's capital expenditure, which witnessed a moderation in growth in FY25, will be important to sustain economic activity," EY said. In February, the National Statistical Office (NSO) had projected the Indian economy to grow at 6.5 per cent in 2024-25, with economic growth in June, September and December quarters at 6.5 per cent, 5.6 per cent and 6.2 per cent, respectively. The NSO is scheduled to release the provisional estimates of FY25 GDP and quarterly estimates for Q4 on May 31. In April, the RBI's monetary Policy Committee (MPC), consisting of three central bank members and an equal number of external members, voted unanimously to cut the repurchase or repo rate by 25 basis point to 6 per cent. It had reduced rates by an equal measure in February -- the first cut since May 2020. For 2025-26 fiscal, RBI has projected GDP growth at 6.5 per cent. The next meeting of the MPC is scheduled for June 6.
Hans India
26-04-2025
- Business
- Hans India
EY forecasts 6.5% GDP growth in FY26
New Delhi: Indian economy could grow at 6.5 per cent in the current fiscal as lower prices of crude oil are expected to ease inflationary pressure and support domestic growth, despite intensifying global trade tensions, EY said on Friday. The 'EY Economy Watch' report for April identifies four key interlinked effects which would have a bearing on India's growth — reduced exports, global slowdown, falling crude oil prices, and the impact of global excess production capacities. 'With suitable fiscal and monetary policies, India may be able to sustain a real GDP growth at about 6.5 per cent in FY26 as also in the medium term, while maintaining a CPI inflation below 4 per cent. 'We also expect global crude prices to remain in the range of $60-65/bbl in FY26, which may be to India's advantage,' EY India Chief Policy Advisor DK Srivastava said. It said exports may slow due to higher tariffs and weakening global demand, but the overall GDP impact may be limited, given the subdued role of net exports in India's recent growth experience. Global slowdown may constrain growth worldwide, but India's relatively strong fiscal space and monetary flexibility provide scope for calibrated stimulus. Excess production capacities in major exporting nations could lead to dumping risks, requiring India to consider targeted anti-dumping measures.
