The BRICS group comprising Brazil, Russia, India, China, and South Africa has evolved from a loose association of emerging economies into a forum seeking strategic influence in global governance. The 2025 BRICS Summit in Rio de Janeiro marks a critical moment, as the bloc attempts to fill the void left by U.S. retrenchment and protectionism by positioning itself as a defender of multilateralism, free trade, and a reformed global order.
Evolution and Growing Significance of BRICS
- Origin and Growth:
- Though it was conceptualized in 2006 (as BRIC), it got formalized only in 2009.
- Fortaleza Declaration (2014) leading to the New Development Bank and Johannesburg II (2023) heralded further expansion to BRICS+.
- Recent Expansion:
- Addition of Egypt, Ethiopia, Iran, UAE, and Saudi Arabia from Jan 2024 shows its increasing clamour.
- BRICS now represents 40% of global GDP and 50% of world population.
- Geopolitical Context:
- Rise of U.S. unilateralism and tariff policies (e.g., Trump-era tariffs), Western dominance in global financial institutions, Russia-Ukraine war realignments further increase the salience of BRICS.
Relevance of BRICS in the Contemporary Global Order
Voice of the Global South:
- It is a platform to raise issues like climate justice, energy access, and WTO reforms. The recent theme of the summit “BRICS and Global South: Building a Better World Together” underscores it as a vehicle for global south.
Push for Multipolarity: BRICS countries collective push for UNSC and Bretton Woods reforms. They also supported India’s G20 Presidency and called for democratization of global institutions.
Economic & Financial Mechanisms:
- New Development Bank (NDB): Financed 100+ projects, including India’s metro and renewable energy projects.
- Contingent Reserve Arrangement (CRA): $100 billion liquidity support pool.
- BRICS Pay & BRICS Grain Exchange: Alternatives to SWIFT and WTO-led food trade.
Energy & Strategic Security:
- Post-expansion, BRICS now includes key oil producers (e.g., UAE, Iran, Saudi Arabia) – together producing 44% of global oil.
- BRICS Rapid Information Security Channel boosts cyber-security cooperation.
Challenges Hindering BRICS’ Effectiveness
Lack of Common Vision:
- Varied political systems, from democracies (India, Brazil) to authoritarian regimes (China, Russia) deter common agenda.
- Only 2.2% of intra-BRICS trade (2022) despite 18% global trade share.
Geopolitical Rivalries:
- India-China tensions (e.g., Doklam, Galwan), Iran-Saudi Arabia rivalry, and Russia’s isolation post-Ukraine undermine unity.
Dominance of Few Members:
- China’s economic and strategic dominance, Russia’s military assertiveness overshadow smaller members.
Weak Institutional Framework:
- No permanent secretariat and decisions are made on consensus without enforcement.
- Proposed BRICS Credit Rating Agency (CrRA) has seen no traction since 2018.
Challenges in De-Dollarization:
- While Russia, China, and Iran push for de dollarization, lack of macroeconomic convergence and institutional frameworks hampers a common currency.
India’s role in BRICS
Strategic Autonomy & Multipolarity:
- India uses BRICS to balance Western and Chinese influence without full alignment.
- India strong advocates for UNSC reform and Global South representation using BRICS platform.
Developmental Gains:
- NDB loans support infrastructure, green energy besides energy access from new members like UAE, Saudi Arabia.
Global Diplomacy Platform:
- India maintained neutral space to engage with China and Russia despite bilateral tensions.
- It also Uses BRICS to promote initiatives like ISA, One Earth One Health, and CDRI.
But challenges abound for India:
- Navigating China’s strategic assertiveness.
- Need to define membership criteria to avoid dilution of core values.
- Managing overlapping forums like IBSA and BASIC.
- Balancing its membership of both BRICS and QUAD.
Way Forward
Define a Shared Strategic Vision:
- Establish a permanent secretariat, shared charter, and clear long-term objectives.
- Aligning on core global issues like digital transformation, food security, and climate finance.
Institutional Strengthening:
- Enhance effectiveness of NDB, BRICS Pay, and CRA.
- Develop co-financing models with World Bank or AIIB.
Inclusive and Transparent Expansion:
- Clear criteria for new members to maintain coherence.
- Prevent geopolitical rivalries from spilling into the platform.
Leveraging Common Interests:
- Focus on non-controversial areas like health cooperation (BRICS Vaccine Center), space tech (BRICS satellite constellation), and supply chain resilience.
Balanced Diplomacy:
- India must leverage its relations with Russia and developing countries to counterbalance China’s dominance.
Conclusion:
BRICS represents both a promise and a paradox. For India, BRICS is a valuable but delicate balancing act one that offers both opportunity and strategic challenge. Its relevance in the 21st century will depend on how it navigates expansion, asserts its agenda, and institutionalizes cooperation amid growing geopolitical flux.
+1 Value addition:
- BRICS Credit Rating Agency (CrRA) was proposed in 2018 but couldn’t come up due to a lack of consensus among members.
- With Iran, Saudi Arabia and UAE as members, BRICS countries produce about 44% of the world’s crude oil.
- BRICS Rapid Information Security Channel: Promotes exchange of information on cyber threats among their central banks.
- BRICS Plus” Dialogue: The dialogue was hosted with emerging markets and developing countries from Africa, Asia, Europe, Latin America, and the Middle East with motto “BRICS and Global South: Building a Better World Together.”
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