Modi said a separate rating agency would help the economies of the member countries as well as other developing nations.
Prime Minister Narendra Modi on Monday strongly pitched for setting up of a BRICS credit rating agency to counter western rating institutions and cater to the financial needs of sovereign and corporate entities of developing nations.
In an address at the plenary session of the BRICS (Brazil-Russia-India-China-South Africa) Summit in Xiamen, Modi said a separate rating agency would help the economies of the member countries as well as other developing nations.
"Last year we discussed pooling our efforts to create a BRICS rating agency. An Expert Group has since been studying the viability of such an agency. I would urge that the roadmap for its creation should be finalised at the earliest," the prime minister said.
Modi also called for stepping up cooperation among BRICS countries in the financial sector.
"Our Central Banks must further strengthen their capabilities and promote cooperation between the Contingent Reserve Arrangement and the IMF (International Monetary Fund)," the prime minister said.
He said India has found that technology and digital resources are powerful tools in fighting poverty and corruption, adding that his government has stepped up the fight against black money and corruption.
Modi said a strong BRICS partnership on innovation and digital economy can help spur growth, promote transparency and support the sustainable development goals.
In this context, he suggested considering a collaborative pilot project under the BRICS framework, including private entrepreneurship.
India had first mooted the idea of having such an agency for the BRICS grouping which can solve impediments for the emerging market economies posed by the present CRA market, which is dominated by S&P, Moody's and Fitch.
These three western rating agencies hold over 90 per cent of the sovereign ratings market now.
Indian officials were at the forefront at last year's BRICS Summit in Goa in pointing out the shortcomings and the need for having an alternative credit rating agency.
Photograph: Tyrone Siu/Reuters