Managing a Larger, More Complex Family
The most immediate challenge is the bloc’s own transformation. Following its recent expansion to include nations like Egypt, Iran, the UAE, and Saudi Arabia, BRICS is now a more diverse and geographically representative group. However, this growth brings
significant hurdles. Integrating these new members, with their varied economic systems and political alignments, is a monumental task. Internal fault lines are more pronounced than ever. Long-standing strategic competition between India and China, and fresh regional tensions between new members like Iran and Saudi Arabia, threaten the group's cohesion. Some reports even suggest that plans for further expansion have been put on hold due to these growing divergences, turning the Delhi summit into a crucial test of the bloc's ability to manage its internal contradictions and forge a common path forward.
The De-Dollarisation Dilemma
A central, and contentious, issue on the agenda is the push for de-dollarisation. For years, members like Russia and China have championed reducing reliance on the US dollar for international trade and finance. The discussion is moving beyond rhetoric to practical steps, such as promoting the use of national currencies in bilateral trade and developing alternative payment infrastructures, like a blockchain-based 'BRICS Bridge' system. However, the bloc is not united on the pace or endgame. While some members push for a rapid shift, the official stance appears to be one of "practical gradualism"—a slow, measured effort to build financial resilience rather than an all-out effort to dethrone the dollar. India, navigating its strong ties with Western economies, has traditionally adopted a more cautious approach, creating a point of potential friction during the Delhi deliberations.
India's Priorities and Precarious Balancing Act
As the host nation, India is in a unique and challenging position. Its presidency is an opportunity to steer the BRICS agenda, but it also highlights the country's delicate geopolitical balancing act between its commitments to BRICS and its partnerships in forums like the Quad. New Delhi is leveraging its leadership role to champion its own successes as a model for cooperation. A key priority is promoting India's Digital Public Infrastructure (DPI), including the Unified Payments Interface (UPI), as a framework for digital collaboration across the Global South. Furthermore, India is focused on building resilient supply chains, particularly in critical sectors like pharmaceuticals and semiconductors, to insulate member economies from global shocks. The summit will test India’s ability to build consensus and advance its 'Humanity First' vision while navigating deep-seated geopolitical rivalries within the group.
Strengthening Financial Architecture
At the heart of BRICS' economic ambitions is the New Development Bank (NDB). Conceived as an alternative to Western-dominated institutions like the World Bank and IMF, the NDB's mandate is to fund infrastructure and sustainable development projects across member nations and other emerging economies. A key part of its strategy is to increase lending in local currencies, which aligns with the broader de-dollarisation goal and helps borrowers avoid exchange-rate risks. The NDB aims for 30% of its financing to be in national currencies. However, the bank faces significant challenges. Analysts point out that the NDB remains undercapitalized, limiting the scale of its impact. Enhancing its financial firepower and integrating new members like Iran into its framework will be critical topics of discussion for the leaders in Delhi.
