India's efforts to get a BRICS credit rating agency set up for the summit appeared to have hit a roadblock due to lack consensus after some members voiced "concerns" over the "credibility" and access to "dependable data" for the new entity to take on the Wall Street-based Big 3 run on commercial principles.
Economic Relations Secretary Amar Sinha told reporters at Goa after the Eighth BRICS Summit,
The leaders were mainly convinced but we couldn't sign the agreement right now because there is a sense that experts need to look at it more closely. Because of the lack of consensus, the item has been included under the "action plan" and not in the Goa Declaration.
Elaborating on the concerns, he said,
Every credit rating agency has to have credibility and access to absolutely dependable data. These two things the experts have to look at now
Sinha, however, said this is not a setback, pointing out to the other items on the economic cooperation front like agri research and customs cooperation saw consensus.
The proposed credit rating agency also found a mention in Prime Minister Narendra Modi's closing remarks. To further bridge the gap in the global financial architecture, we agreed to fast track the setting up of a BRICS Rating Agency, he said in the joint declaration.
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, all based in Wall Street and being run with pure commercial considerations. These three hold over 90 per cent of the sovereign ratings market now.
Indian officials were at the forefront of pointing out to the shortcomings and the need to have an alternative CRA in the days leading to the Goa summit and during deliberations at the conclave here over the weekend. .