From Acronym to Alliance
The term 'BRIC' was first coined in 2001 by a Goldman Sachs economist to identify four rapidly growing emerging economies: Brazil, Russia, India, and China. What started as an investment banking term was soon adopted by the countries themselves, who saw
an opportunity for collaboration. Russia initiated the first formal meeting in 2006, leading to the first leaders' summit in 2009. The group officially became 'BRICS' with the inclusion of South Africa in 2010, which attended its first summit the following year. It's not a formal treaty organisation like NATO, but rather an informal bloc that coordinates on key issues through annual summits.
A Rapidly Expanding Family
For over a decade, the five-member bloc remained stable. However, that changed dramatically. At the 2023 summit, invitations were extended to six more countries. In January 2024, Egypt, Ethiopia, Iran, and the United Arab Emirates (UAE) officially joined as full members. Indonesia followed, becoming a member in 2025. While Saudi Arabia was also invited and is listed as a member on official BRICS sites, it has not yet publicly confirmed its formal entry. This expansion has significantly increased the bloc's demographic and economic weight, with the eleven members now representing nearly half the world's population and over a quarter of the global economy.
Core Goals and Objectives
At its heart, BRICS aims to increase the influence of emerging nations and create a more 'multipolar' world order, challenging the long-standing dominance of Western powers and institutions like the World Bank and the International Monetary Fund (IMF). Key objectives include deepening economic cooperation among members, pushing for reforms in global governance to give developing countries a bigger voice, and reducing dependence on the U.S. dollar for international trade by promoting the use of national currencies. The group serves as a platform to coordinate on issues of global security, sustainable development, and climate change, advocating for the interests of the Global South.
Building Its Own Institutions
To turn its goals into reality, BRICS has established its own financial architecture. The most significant achievement is the New Development Bank (NDB), which began operations in 2015. Headquartered in Shanghai, the NDB was created to fund infrastructure and sustainable development projects in member countries and other emerging economies, with each founding member holding an equal stake. By late 2022, the bank had approved nearly $32 billion for projects. Alongside the NDB, the bloc created the Contingent Reserve Arrangement (CRA), a $100 billion fund to protect members against global liquidity pressures and provide an alternative to the IMF.
India's Pivotal Role
For India, which holds the BRICS chairship for 2026, the bloc is a vital platform for advancing its foreign policy of 'strategic autonomy'. It allows New Delhi to engage with major non-Western powers like China and Russia while simultaneously maintaining strong partnerships with the United States and European nations through forums like the Quad. India views BRICS as a vehicle to champion the interests of the Global South, push for a permanent seat on the UN Security Council, and build alternative financial systems that are less exposed to Western sanctions and economic policies. However, India also navigates a complex balancing act, particularly given its unresolved border disputes and strategic rivalry with China.
Challenges and the Road Ahead
Despite its growing influence, BRICS faces significant internal and external challenges. The economic and political systems of its members are vastly different, leading to divergent priorities. The rivalry between India and China, for instance, remains a major fault line. Critics argue that the bloc's expansion could make it less cohesive and more difficult to reach a consensus. Furthermore, while the push for de-dollarisation and trading in local currencies is gaining momentum, the US dollar's dominance in global finance remains firmly entrenched. The future of BRICS will depend on its ability to manage these internal divisions and translate its collective economic weight into unified political action on the world stage.
