Prime Minister Narendra Modi on Monday strongly pitched for the 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 Summit here, Mr. Modi said a separate rating agency would help the economies of the member countries and other developing nations.

“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, urging early creation of the BRICS rating agency.

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.

Three western agencies hold over 90% of the sovereign ratings market.

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.