Hamburg: Expeditious action should be taken to establish the BRICS credit rating agency, Prime Minister Narendra Modi said on Friday, while emphasising that international financial institutions should reflect the world's current economic balance.


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Speaking at the informal meeting of the BRICS leaders on the sidelines of the G20 Summit here, Modi said India is seeing fast economic growth.


Asserting that the BRICS group has to be a voice of stability, reform, progress and governance at the world stage, Modi called for expeditious action to establish BRICS credit rating agency.


Last year, BRICS nations agreed to set up an independent credit rating agency based on market-oriented principles as part of efforts to further strengthen global governance architecture.


They have already set up New Development Bank, which became operational last year, to meet funding requirements of the members.


While stressing on the need for collective efforts to sustain global economic recovery, Modi also touched upon the issue of representation in global financial institutions.


"We have to ensure that international financial institutions fully reflect the current economic balance," the Prime Minister said in an apparent reference to the quota reforms at the World Bank and the International Monetary Fund (IMF).


According to Modi, BRICS reflects stability, reform, progress and good governance in the world.


"The decisions taken by us impact the entire world... We have to work collectively to sustain the global economic recovery," he noted.


Modi also underlined support for free and open trade regime of World Trade Organization (WTO).


"We are collectively against growing protectionism, especially with regard restriction on movement of knowledge, technology and skilled professionals," Modi said.


His remarks came against the backdrop of certain developed nations looking at restricting flow of skilled people from overseas.


Fortunately, Modi said, the global economic growth is showing improvement while India's economy is growing at a fast pace.


"The GDP growth this year is likely to be more than 7 percent... India's reform agenda is continuously making progressing," he said.


Noting that the GST (Goods and Services Tax), which was implemented last week, was the biggest tax reform in the last 70 years, the Prime Minister said it would help businesses and provide a unified market of 1.3 billion people.


While stating that cooperation on development of Africa should be a priority, he also called for greater people-to- people exchanges.


BRICS bloc comprises five members -- Brazil, Russia, India, China and South Africa.