Modi, Pezeshkian talk West Asia
Prime Minister Narendra Modi on Monday met with Iranian President Dr Masoud Pezeshkian on the sidelines of the BRICS summit in New Delhi, with the two leaders discussing bilateral relations, BRICS cooperation and recent developments in West Asia.
The meeting was the second between PM Modi and Pezeshkian in less than two weeks. The two leaders had earlier met on the sidelines of the Shanghai Cooperation Organisation (SCO) summit in Bishkek on August 31. Prime Minister Modi thanked Iran for its regular and high-level participation in BRICS-related meetings despite challenging circumstances.
PM Modi highlighted the potential of BRICS to promote resilience, innovation, cooperation and sustainability among countries of the Global South. He also thanked Pezeshkian for participating in the Leaders’ Session of the BRICS Business Forum.
The two leaders also exchanged views on recent developments in West Asia. PM Modi reiterated India’s consistent position that all issues must be resolved through dialogue and diplomacy.
Speaking at the BRICS Business Forum, Pezeshkian urged member countries to expand local-currency settlements and develop mechanisms to manage currency risks. He argued that BRICS must move beyond its combined economic size and create practical networks for trade, investment and joint financing.
“The true strength of BRICS is not confined merely to the size of its members’ economies; rather, it becomes more apparent when these capacities are transformed into a network of trade, investment, and joint financing,” he said.
The concentration of the international financial system around a limited number of currencies had increased the vulnerability of global trade to political pressure and external shocks, he added.
He called for deeper integration of trade infrastructure, including digitalised customs procedures, reduced regulatory barriers and stronger cross-border markets. Pezeshkian also urged the New Development Bank to emerge as the principal financing engine for infrastructure and energy projects across BRICS countries, while proposing greater use of local-currency lending, dedicated credit lines and guarantee instruments to attract private-sector investment into major projects.
The push for greater use of national currencies has emerged as a key element of efforts within the grouping to reduce dependence on a limited number of international currencies and strengthen intra-BRICS economic ties.
The BRICS Summit is being held against a backdrop of heightened geopolitical and economic uncertainty. The Russia-Ukraine war, continuing tensions in West Asia, concerns over the Strait of Hormuz and changing US trade and tariff policies have added pressure to global supply chains and energy markets.
For India, maintaining energy security and protecting vital maritime trade routes remain key priorities. Against this backdrop, the calls from Iran and Russia for greater reliance on national currencies put financial cooperation at the centre of the BRICS agenda.
