From Acronym to Alliance
The term 'BRIC' was first coined in 2001 by Goldman Sachs economist Jim O'Neill. It was simply an economic grouping for the fast-growing economies of Brazil, Russia, India, and China, which he predicted could collectively dominate the global economy by 2050.
The countries themselves took the idea and ran with it, holding their first formal summit in 2009. A year later, the group invited South Africa to join, officially changing the acronym to BRICS. It's not a formal treaty-based organization like NATO, but rather a bloc that coordinates economic and diplomatic policy among its members.
An Expanding Membership
For over a decade, the group remained at five members. However, in January 2024, BRICS underwent a major expansion, welcoming Egypt, Ethiopia, Iran, and the United Arab Emirates as full members. Indonesia followed in early 2025, becoming the first Southeast Asian member. This expansion significantly increases the group's demographic and economic weight. The now eleven-member bloc represents nearly half of the world's population and a substantial portion of the global economy. Saudi Arabia was also invited to join, but its membership status remains under consideration. Further, a new 'partner country' category has been created to allow other nations to participate in summits.
Challenging the Old Order
The core purpose of BRICS is to increase the influence of developing nations and create a more multipolar world order, one not dominated by Western powers and institutions. Members feel that legacy institutions like the World Bank and the International Monetary Fund (IMF) are outdated and don't serve the interests of the Global South. To create an alternative, BRICS established two key financial institutions: the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA). The NDB funds infrastructure and sustainable development projects in member countries and other emerging economies, while the CRA is a US$100 billion pool of funds designed to protect members from short-term currency crises.
What's In It For India?
For India, BRICS is a crucial platform for its foreign policy. It allows New Delhi to champion the cause of the Global South while maintaining its strategic autonomy. As a founding member, India plays a key role in shaping the bloc's agenda. Membership provides a forum to enhance economic ties, coordinate on key issues like counter-terrorism, and push for reforms in global governance, including a permanent seat on the UN Security Council. With India holding the BRICS chairship for 2026, it has an opportunity to steer the group's agenda, focusing on themes like resilience, innovation, and sustainability. The position allows India to balance different interests within the bloc and reinforce its role as a leading power.
Challenges and the Road Ahead
Despite its ambitions, BRICS faces significant hurdles. The bloc is diverse, with members that have different political systems and, at times, conflicting geopolitical interests, most notably between India and China. This internal divergence can make consensus-building difficult. Some critics argue the bloc risks becoming too China-centric or being perceived as primarily an anti-Western alliance, a narrative India often works to balance. As the group continues to expand and evolve, its ability to manage these internal divisions and translate its economic weight into coherent political influence will determine its ultimate success in reshaping the global order.
