From Economic Club to Geopolitical Alliance
When it began, the bloc—Brazil, Russia, India, and China, later joined by South Africa—was primarily an economic concept. The goal was to increase the influence of rising economies and push for reforms in Western-dominated institutions like the World
Bank and IMF. The focus was on shared development, trade, and creating a multipolar world order where power wasn't concentrated in a few hands. This initial vision was about cooperation and giving a louder voice to the Global South. The agenda was largely centred on economic and financial matters, from coordinating on global financial crises to establishing the New Development Bank (NDB) as an alternative source of funding. It was a club of equals, united by their shared status as large, fast-growing economies.
The Great Expansion and Its Complications
The most significant change in recent years has been the dramatic expansion of the bloc. In 2023, invitations were extended to countries like Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE, with others joining as partner nations. This has transformed BRICS into a much larger entity, now representing nearly half the world's population and a significant chunk of global GDP. On the surface, this expansion amplifies the group's collective voice. However, it also introduces a host of new complexities. The bloc is now more diverse politically and economically, making consensus harder to achieve. With new members come new rivalries and divergent interests, such as tensions between Iran and Saudi Arabia or Egypt and Ethiopia, which can complicate decision-making.
The Dragon in the Room: China’s Growing Influence
With expansion, the internal balance of power has fundamentally shifted. China's economy is now larger than all other BRICS members combined, giving it immense influence over the group's agenda. Beijing increasingly views BRICS through a geopolitical lens, as a platform to build a coalition that can challenge the West. This creates a direct challenge for India. New Delhi has consistently tried to position BRICS as a non-Western, not an anti-Western, forum. India's strategy is to maintain its strategic autonomy, balancing its membership in BRICS with its partnerships with the US, Japan, and Australia through platforms like the Quad. The fear in New Delhi is that an unchecked Chinese dominance could turn BRICS into an instrument of Beijing's foreign policy, undermining India's own leadership ambitions in the Global South.
The De-Dollarisation Push
Another major shift is the move from talking about economic alternatives to actively pursuing them. The 'de-dollarisation' debate is no longer just academic. Spurred by Western sanctions on Russia, there is a serious push within BRICS to increase the use of national currencies for trade. Initiatives like a BRICS Pay system are being discussed to bypass the dollar-dominated SWIFT network. For India, this presents both an opportunity and a risk. Reducing dependency on the US dollar enhances strategic autonomy and can lower transaction costs. However, India remains cautious about proposals for a common BRICS currency, fearing it could be dominated by the Chinese yuan and could provoke trade friction with the United States. India's approach is to promote bilateral trade in local currencies without getting locked into a system that might primarily serve China's interests.
India's New Tightrope Walk
As the host of the BRICS summit in 2026, India finds itself performing a delicate balancing act on a much bigger stage. The core of its strategy is to act as a 'bridge-builder' or the 'sensible middle'. India is leveraging its presidency to steer the group towards practical cooperation on issues like digital infrastructure, health, climate finance, and supply chain resilience, rather than ideological confrontation. The goal is to carve out a space for itself as a leading voice of the Global South, independent of both Western and Chinese spheres of influence. India's presence is crucial to prevent BRICS from being entirely dominated by the China-Russia axis, ensuring it remains a truly multipolar platform where diverse interests can coexist.
