A Larger, More Diverse Bloc
What began as an acronym for four major emerging economies—Brazil, Russia, India, and China—has transformed into a much larger group. After South Africa joined in 2010, the bloc recently underwent a significant expansion, welcoming Egypt, Ethiopia, Iran,
and the United Arab Emirates as new members in 2024, with Indonesia following in 2025. This expanded group now represents nearly half of the world's population and a significant share of the global economy. The primary argument for this growth is to create a more influential platform for the Global South, offering an alternative to Western-dominated international institutions and amplifying the voices of developing nations on the world stage.
The Economic Argument: Building Alternatives
A key piece of evidence supporters point to is the creation of new financial institutions. The New Development Bank (NDB), established in 2015, stands as BRICS' most tangible achievement. It provides funding for infrastructure and sustainable development projects without the political conditions often attached to loans from the World Bank or IMF. The NDB has approved over $40 billion for more than 120 projects, increasingly lending in local currencies to reduce dependency on the US dollar. Furthermore, the bloc established a $100 billion Contingent Reserve Arrangement to help members facing liquidity crises. Proponents argue these initiatives are concrete steps toward a multipolar financial world, giving emerging economies more autonomy.
The Push for De-Dollarization: Rhetoric vs. Reality
Much of the debate centres on de-dollarization—the effort to shift trade away from the US dollar. While the ambition is strong, the evidence shows a slow and difficult process. Trade between BRICS members is growing, and there's an increasing push to settle transactions in local currencies. However, the US dollar remains deeply embedded in global trade and finance. Even within the bloc, China's economic dominance means that much of the intra-BRICS trade is centred around its economy and supply chains. Analysts note that creating a common BRICS currency is a daunting prospect due to the vast differences in the members' political systems, economic priorities, and monetary policies. The current focus is less on replacing the dollar and more on creating parallel systems to reduce vulnerability to Western sanctions and financial pressure.
A House Divided: Internal Rifts and Rivalries
The biggest challenge supported by evidence is the bloc's internal division. The expansion has brought in countries with competing interests and regional rivalries, such as Iran versus Saudi Arabia and the UAE, or Egypt and Ethiopia's disputes. The original members also face tensions, most notably the strategic rivalry and border disputes between India and China. These differences make it difficult for the bloc to reach a consensus on major geopolitical issues, from conflicts in Ukraine and the Middle East to UN Security Council reform. Critics argue that a larger, more diverse group risks diluting the bloc's focus and hindering its ability to act decisively.
India's Cautious Balancing Act
For India, which holds the BRICS chair in 2026, the expansion presents both opportunities and challenges. India supported expansion as a way to champion the Global South, but it has insisted on a criteria-based approach to new members. New Delhi's key concern is to prevent the bloc from becoming an explicitly anti-Western alliance, which would clash with its strategic partnerships with the United States and other Western nations through platforms like the Quad. India uses BRICS as a platform to manage its complex relationship with China and to advance its goal of a more democratic and multipolar world order where its own influence can grow. The 2026 New Delhi summit will be a major test of India's diplomatic ability to steer the diverse group toward consensus on shared priorities.
