From Economic Club to Geopolitical Force
Originally coined in 2001, 'BRIC' was an investment term for Brazil, Russia, India, and China—four fast-growing economies. By 2009, it formalised into a diplomatic grouping, and with South Africa's inclusion in 2010, it became BRICS. The initial goal
was to amplify the voices of emerging economies and push for a more equitable global financial system, challenging the dominance of Western-led institutions like the World Bank and IMF. For years, it was a forum for economic policy coordination. But today, its agenda has expanded dramatically to cover everything from counter-terrorism and climate change to food and energy security. It has evolved from an economic concept into a platform shaping global governance discussions.
The Big Expansion: A New Character
The most significant recent change is the bloc's expansion. In 2023, BRICS invited six new countries, with Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates joining. Further members like Indonesia have also been integrated. This has transformed BRICS into an 11-member bloc representing nearly half the world's population and 40% of global GDP. The inclusion of major energy producers like Saudi Arabia, Iran, and the UAE has profound implications for India’s energy security. However, this expansion also makes the group more diverse and potentially more divided. It now includes countries with competing regional ambitions, such as Iran and Saudi Arabia, or India and China, making consensus harder to achieve.
India’s Economic Stake: Trade and Finance
For India, BRICS is a vital economic platform. The expanded bloc opens up new markets and strengthens trade routes, particularly to the Middle East and Africa. One of the bloc's flagship achievements is the New Development Bank (NDB), headquartered in Shanghai. India is a founding member and major beneficiary, with the NDB financing key infrastructure and sustainable development projects across the country, from renewable energy to urban services. There's also a growing push to increase the use of local currencies for trade among members, reducing dependence on the US dollar and lowering transaction costs. India is promoting its Unified Payments Interface (UPI) as a model for creating interoperable digital payment systems across the bloc.
The Geopolitical Balancing Act
BRICS provides India with a crucial platform to advance its long-held foreign policy goal of 'strategic autonomy'. It allows New Delhi to engage with major powers like China and Russia while simultaneously strengthening partnerships with the West, such as the Quad (with the US, Japan, and Australia). India has consistently acted as a moderating force within BRICS, preventing it from becoming an explicitly anti-Western coalition. This is a delicate balancing act. India's rise depends on access to Western capital and technology, so it has no interest in a direct confrontation. Instead, it uses the platform to champion the interests of the Global South and advocate for a more multipolar world order.
Navigating the China Challenge
The biggest internal challenge for India within BRICS is managing the dominant presence of China. China's economy dwarfs the other members, and its strategic goals sometimes clash with India's. Tensions along the Line of Actual Control (LAC) have created a complicated dynamic. However, BRICS provides a necessary forum for dialogue. High-level meetings at summits, such as President Xi Jinping's visit to New Delhi for the 2026 summit, offer opportunities to manage the relationship and address outstanding bilateral issues. India's strategy is to build coalitions with other like-minded members within the group to ensure its interests are not overshadowed and to keep the focus on cooperation rather than rivalry.
