A Bloc of Growing Ambition
India takes the helm of the BRICS grouping for 2026, a year that sees the bloc in an expanded and more ambitious form. Originally comprising Brazil, Russia, India, China, and South Africa, the alliance has recently welcomed new members, including Egypt,
Ethiopia, Iran, and the UAE, with others like Indonesia joining the fold. This larger coalition now represents a formidable portion of the world's population and economic output, aiming to amplify the voice of the Global South on the world stage. India's theme for its chairmanship—"Building for Resilience, Innovation, Cooperation and Sustainability"—signals a forward-looking agenda. The summit in New Delhi is therefore not just a routine meeting but a significant moment for India to steer the bloc's direction and manage its growing pains.
Navigating a Fragmented World
The central challenge looming over the New Delhi summit is the deepening fragmentation of global trade. The era of seamless globalization has given way to a landscape defined by tariff walls, sanctions, and intense competition, particularly between the United States and China. Companies and countries are increasingly forced to rethink supply chains, shifting focus from pure efficiency to security and resilience. This trend of "geopolitical rerouting" creates both risks and opportunities for BRICS nations. The bloc was founded to champion a more inclusive global economic order, and this summit will test its ability to forge a coherent response to rising protectionism and advocate for a reformed, transparent, and fair multilateral trading system.
The De-Dollarization Debate
A key topic of discussion within the bloc is the push for "de-dollarization"—reducing dependence on the US dollar for international trade and finance. This ambition is driven by a desire for greater economic sovereignty and insulation from the effects of US foreign policy and sanctions. The conversation has moved towards the practical steps of promoting the use of local currencies in trade between member countries. For instance, India has already started paying for some oil imports in rupees. While the creation of a single common BRICS currency remains a distant and complex prospect, the summit is expected to advance initiatives for developing alternative payment systems and strengthening the role of the bloc's New Development Bank (NDB) in local currency financing.
India's Diplomatic Tightrope
For host nation India, the summit is a delicate diplomatic balancing act. New Delhi is a member of both BRICS and security groupings with Western partners, such as the Quad. This unique position allows India to act as a potential bridge between different global factions. However, it also brings challenges, particularly in managing internal contradictions within BRICS itself, such as the ongoing border tensions between India and China. India's leadership will be crucial in steering the expanded group towards consensus, ensuring the bloc does not become perceived as an anti-West coalition, and focusing on a positive agenda of development, innovation, and reforming global governance. A key priority for India is leveraging its success in digital public infrastructure to offer a development model for other nations in the Global South.
