More Than Just a Grouping
First, what is BRICS? The bloc, originally comprising Brazil, Russia, India, and China, and later South Africa, has recently expanded. It now includes several other nations, significantly increasing its global footprint. As of 2026, the expanded grouping
represents nearly half the world's population and a substantial portion of global GDP. For India, which assumed the BRICS chairmanship for the fourth time in 2026, the group serves as a vital platform to amplify the voice of developing nations, often referred to as the Global South. It provides a forum for dialogue and cooperation on issues from economic development to security, all while allowing India to maintain its cherished policy of strategic autonomy—engaging with all sides without being locked into any single alliance.
The Economic Powerhouse
A key reason BRICS matters for India is the economic opportunity it presents. The New Development Bank (NDB), established by BRICS nations in 2015, is a prime example. The NDB was created to fund infrastructure and sustainable development projects in member countries, offering an alternative to Western-dominated institutions like the World Bank and IMF. India has been a major beneficiary, with the NDB approving billions in loans for projects ranging from metro rail systems in Chennai and Mumbai to road and bridge construction in Madhya Pradesh and affordable housing initiatives. Furthermore, the NDB plans to channel an additional $7.5 billion into India over the next five years, with a significant portion dedicated to local-currency financing to reduce exchange-rate risks for borrowers.
A Strategic Balancing Act
Beyond economics, BRICS provides India with critical diplomatic leverage. The platform allows New Delhi to engage directly with major powers like China and Russia, even when bilateral relations are complex. For instance, high-level meetings on the sidelines of BRICS summits offer a valuable channel to manage the contentious border dispute with China. The bloc enables India to pursue a multi-aligned foreign policy, maintaining strong partnerships with Western countries like the US and Europe while simultaneously building consensus with emerging economies on key global issues. This balancing act is central to India's ambition to be a leading, rather than a subordinate, global power. It allows India to shape global conversations on its own terms.
Reforming the Global Order
A core objective shared by BRICS members is the call for reform in global financial and political institutions. Many developing nations feel that bodies like the UN Security Council and the Bretton Woods institutions are outdated and don't reflect the economic and demographic realities of the 21st century. BRICS advocates for a more inclusive and representative global order. This includes discussions around increasing the use of national currencies in international trade to reduce dependency on the US dollar. While India has clarified that it is not pursuing an aggressive "de-dollarisation" policy or a common BRICS currency, it supports promoting trade in local currencies to mitigate economic risks. This push for financial diversification and institutional reform is a long-term goal that strengthens India's financial sovereignty.
Navigating the Challenges
Despite its importance, India's role in BRICS is not without its challenges. The most significant is managing its relationship with China. China's economy is substantially larger than those of all other members combined, leading to concerns about Beijing's dominance within the group. Their differing strategic goals and the unresolved border dispute create a persistent undercurrent of competition. India's approach has been to focus on areas of common ground and practical cooperation, positioning BRICS as a constructive forum rather than an anti-Western bloc. As the group expands, the challenge will be to maintain consensus and ensure the platform remains effective and focused on tangible outcomes for development and stability.
