OSAKA: Describing terrorism as the biggest threat to humanity, Prime Minister Narendra Modi Friday said the scourge not only kills innocents but also severely affects the economic development and social stability.

Speaking at the informal BRICS leaders' meeting in Osaka on the sidelines of the G20 summit, Modi said that there is a need to stop all the mediums of support to terrorism and racism.

"Terrorism is the biggest threat to humanity. It not only kills innocents but also severely affects the economic development and social stability," he said.

On terrorism, Prime Minister Modi said it is a global challenge and must be collectively fought by the international community, Foreign Secretary Vijay Gokhale told a reporters.

On the deliberations of the BRICS leaders, Gokhale said they also discussed multilateral challenges and emphasised that these should be dealt with through the established institutions, instead of "unilateralism".

Chinese President Xi Jinping and Russian President Vladimir Putin were present.

The Prime Minister also congratulated Jair Bolsonaro on being elected as the President of Brazil and welcomed him in the BRICS family.

He also congratulated Cyril Ramaphosa on his election as the President of South Africa as the BRICS (Brazil, Russia, India, China and South Africa) leaders met.

In his remarks, Modi spoke about strengthening the World Trade Organisation, fighting protectionism, ensuring energy security and the need to work together to fight terrorism.

"Today, I will focus on the three major challenges. First is the instability and downfall in the global economy. Unilateralism and competitiveness are overshadowing the rule-based mutilateral global trade systems.

"Deficiency of resources, there is a shortfall of almost USD 1.3 trillion investment in the infrastructure," he said.

The second one is to make development sustainable and all-inclusive. Fast changing technologies like digitalisation and climate change pose a challenge to the current as well as future generations, Modi said.

Development is worthwhile only when it reduces inequality and contribute in empowerment, he said.