Indian PM Modi praised for rebuffing China’s power play on Brics development bank
Differences over technical issues are still being ironed out, deputy foreign minister says following Indian reports of China's 'bullying'
Indian Prime Minister Narendra Modi was praised by leading Indian newspapers for standing up to China amid negotiations over the establishment of a multinational development bank, which could turn into the “next India-China flashpoint”.
The world’s two most populous nations along with Brazil, Russia and South Africa – dubbed the “Brics” countries – are in their last week of negotiations prior to a widely expected announcement of a new development bank.
Indian media reported that the negotiation process had thwarted an alleged attempt by China to “dominate” the new lending institution by infusing more cash in it than suggested by India.
The “Brics” bank is being set up to counter perceived excessive American influence on existing international and regional lending institutions such as the World Bank and Asian Development Bank. Brics countries have in the past called for a reform of the international lending system.
Next week, the heads of state of these five largest fast-growing emerging markets are scheduled to meet in Fortaleza, in northeastern Brazil, to announce the establishment of their alternative lender at the first multilateral meeting attended by India’s freshly minted prime minister.