A Larger, More Complex Bloc
The recent expansion has transformed BRICS, bringing in Egypt, Ethiopia, Iran, and the United Arab Emirates. This move significantly boosts the group's economic and demographic weight, making it a more formidable voice for the Global South. The new members
bring diverse strengths: the energy resources of Iran and the UAE, and the strategic geographic locations of Egypt and Ethiopia. However, this diversity also introduces complexity. The group now includes countries with historically tense relationships, such as Iran and the UAE, or Egypt and Ethiopia. Managing these internal dynamics while trying to forge a common agenda will be a major test of the bloc's cohesion and India's diplomatic skill as the host nation.
Economic Cooperation and Development
At the heart of the BRICS agenda is the drive for greater economic cooperation and a reformed global financial architecture. A central pillar of this effort is the New Development Bank (NDB), established as an alternative to the World Bank and IMF. The NDB's primary goal is to mobilize resources for infrastructure and sustainable development projects within member countries and other emerging economies. A key strategy is to increase lending in local currencies, which helps reduce dependence on the US dollar and protects against exchange rate volatility. The NDB's strategy for 2022-2026 includes a plan to allocate USD 30 billion for such projects, with a focus on clean energy, transport, and digital infrastructure. For India, the NDB is a crucial vehicle for financing domestic development projects without the conditions often attached to Western-led institutions.
The Ambitious Push for De-Dollarization
Perhaps the most talked-about goal is 'de-dollarization'—reducing the world's reliance on the US dollar for international trade and finance. This is a long-standing ambition, motivated by a desire to insulate economies from US foreign policy and sanctions, a particularly urgent issue for members like Russia and Iran. The strategy is not to immediately replace the dollar but to pursue a path of "practical gradualism." This involves increasing the use of national currencies in trade between member countries, developing alternative payment systems like 'BRICS Pay', and strengthening financial infrastructure. While a common BRICS currency remains a distant and debated idea, the push to settle more trade in currencies like the rupee and yuan is gaining momentum. However, members like India are approaching this cautiously, balancing the ambition for greater economic sovereignty with the practical realities of the dollar's deep-rooted dominance in the global financial system.
Seeking a Multipolar World Order
Beyond economics, BRICS has clear geopolitical ambitions. The group aims to be a powerful force in shaping a 'multipolar' world, one where global power is not concentrated in the West. A core demand is the reform of global governance institutions, particularly the United Nations Security Council, the IMF, and the World Bank, to give emerging economies a more significant voice. The expansion is seen as a direct challenge to the influence of forums like the G7. However, the bloc is not uniformly 'anti-West'. India, for instance, is a member of the Quad alongside the US, Japan, and Australia, and deftly balances its commitments to both groups. This highlights a central tension within BRICS: whether it will evolve into a direct counterweight to the West, as pushed by China and Russia, or a more independent platform for the Global South that allows for strategic autonomy, a path favored by India and Brazil.
India's Pivotal Role as Host
Hosting the Delhi summit places India in a crucial position to shape the bloc's future. India's theme for its chairmanship is "Building for Resilience, Innovation, Cooperation and Sustainability." This reflects a people-centric approach focused on practical cooperation in areas like health, technology, and climate finance. New Delhi's task is to build consensus among an increasingly diverse membership, fostering cooperation while navigating significant internal differences, including its own border disputes with China. India aims to leverage the summit to enhance its own role as a global trade hub and a leader of the Global South, all while carefully maintaining its independent foreign policy and balancing its relationships with both Western partners and BRICS members. The success of the Delhi summit will largely depend on India's ability to steer the group from ambitious declarations to concrete, cooperative action.
