What is BRICS, and Why the Renewed Buzz?
BRICS is a grouping of major emerging economies: Brazil, Russia, India, and China, with South Africa joining in 2011. It has since expanded significantly, welcoming countries like Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE, signaling a shift in global
dynamics. Representing a massive portion of the world's population and economy, BRICS has evolved from an economic concept into a platform for the Global South to seek greater influence in world affairs. The current attention stems from India's 2026 BRICS Chairship and its hosting of the 18th summit in New Delhi, placing it at the center of crucial conversations about the future world order.
An Engine for Economic Ambition
For India, BRICS is a vital economic platform. It provides access to vast and growing markets, helping to diversify trade beyond traditional Western partners. A key institution is the New Development Bank (NDB), established in 2015 to fund infrastructure and sustainable development projects in member countries. The NDB has already approved billions for projects in India and is increasingly focusing on lending in local currencies, like the rupee, to reduce dependency on the US dollar and minimise exchange-rate risks for borrowers. This push, often termed 'de-dollarisation', involves settling more trade in national currencies, which could lower transaction costs for businesses and increase financial autonomy.
Championing the Global South
A core pillar of India's foreign policy is to be a leading voice for the developing world. BRICS provides the perfect stage for this. The bloc amplifies India's calls for reforming global governance institutions like the UN Security Council, IMF, and World Bank, which are often seen as dominated by Western interests. By chairing BRICS, India can shape the agenda on issues crucial to the Global South, such as development finance, food and energy security, climate justice, and technology transfer. It allows India to build consensus and project itself as a leader that bridges divides and champions inclusive growth.
Navigating the China-West Balancing Act
BRICS is a unique forum where India shares a table with both strategic partners and rivals, most notably China. This presents both a challenge and an opportunity. The platform allows for direct, high-level engagement with Beijing, providing a crucial channel for managing their complex relationship. Simultaneously, India uses the bloc to practice its long-held policy of 'strategic autonomy'. It allows New Delhi to cooperate with non-Western powers without being drawn into a formal anti-West alliance. Foreign Minister S. Jaishankar has articulated this as being “non-Western, not anti-Western,” emphasizing that India seeks to reform the global order, not overturn it. India's position on de-dollarisation is a case in point; it supports increasing the use of local currencies but has openly opposed creating a common BRICS currency, reflecting a pragmatic approach that protects its deep economic ties with the United States.
The Challenges of an Expanded Bloc
The recent expansion of BRICS, while increasing its global footprint, also brings challenges. A larger, more diverse group can make achieving consensus more difficult, as members may have divergent strategic interests. Some analysts even suggest that India's interest may lie in the bloc becoming less cohesive, to prevent it from becoming a tool for China's geopolitical ambitions. India's task during its presidency is to navigate these internal complexities, converting the bloc's greater representation into tangible cooperation and ensuring it doesn't get sidetracked by the overtly anti-Western agendas of some members.
