From Economic Term to Geopolitical Force
The term "BRIC" was first coined in 2001 by Goldman Sachs economist Jim O'Neill. He used it to group four large, rapidly growing economies poised to collectively dominate the global economy by 2050: Brazil, Russia, India, and China. What began as an investment
thesis soon took on a political life. The foreign ministers of these four nations began meeting informally in 2006, leading to their first formal summit in 2009 in Russia. This marked the official transformation of BRIC from a catchy acronym into a cooperative political and economic bloc. In 2010, the group invited South Africa to join, and the acronym evolved into the familiar "BRICS". This move signified a shift from a purely economic label to a more inclusive group of regional leaders from the Global South.
An Expanded Alliance
For over a decade, the five founding members constituted the core of the group. However, in a major expansion, BRICS invited several new countries to join. In January 2024, Egypt, Ethiopia, Iran, and the United Arab Emirates officially became full members. They were followed by Indonesia in early 2025. Saudi Arabia was also invited and is listed as a member by official BRICS sources, though the kingdom has maintained some ambiguity about its status. The expanded group, sometimes referred to as BRICS+, now represents a much larger portion of the world's population and economic output. In addition to full members, the bloc also created a "partner country" category in 2024 to allow for broader engagement, with countries like Vietnam, Nigeria, and Turkey participating.
What Are the Core Objectives?
At its heart, BRICS aims to increase the influence of emerging economies and advocate for a more "multipolar" world order, one not dominated by the United States and other Western powers. A primary goal is to reform global financial institutions like the International Monetary Fund (IMF) and the World Bank, which the members feel are overly dominated by Western interests. The bloc focuses on three main pillars of cooperation: political and security matters, economic and financial integration, and cultural and people-to-people exchanges. Economically, members work to boost trade with one another, often using local currencies to reduce dependence on the US dollar. Politically, they seek to coordinate on global issues and provide a united voice for the Global South.
The New Development Bank and Other Initiatives
One of the most concrete achievements of BRICS is the establishment of the New Development Bank (NDB) in 2015. Headquartered in Shanghai, the NDB was created to mobilize resources for infrastructure and sustainable development projects in member countries and other emerging economies. With an initial authorized capital of $100 billion, it serves as an alternative to the World Bank, funding projects in areas like clean energy, transport, and water management. Another key initiative is the Contingent Reserve Arrangement (CRA), a $100 billion fund designed to provide financial support to members facing balance of payments pressures, acting as a complement to the IMF. The bloc is also exploring initiatives like a shared payment system and a common grain exchange to further deepen economic ties.
Why BRICS Matters for India
For India, BRICS is a crucial platform for advancing its foreign policy goals. It allows New Delhi to champion the interests of the Global South and push for a more equitable system of global governance, a long-standing objective. Membership provides a valuable forum to engage with China and Russia, while also balancing relationships with Western partners like the United States through alliances like the Quad. As the host of the BRICS presidency in 2026, India is steering the agenda towards priorities like supply chain resilience, digital cooperation, and support for small and medium-sized enterprises (MSMEs). By leveraging its growing economy, manufacturing capabilities, and digital infrastructure like the Unified Payments Interface (UPI), India aims to play a pivotal role in shaping the bloc's future and strengthening its own influence on the world stage.
