The Challenge of Unity
The recent expansion of BRICS to include countries like Egypt, Iran, and the UAE has made it more representative of the Global South, but also more complex. The addition of new members with diverse and sometimes competing interests has raised concerns
about the bloc's coherence. Tensions between founding members India and China over territorial disputes and strategic rivalry continue to create fault lines. Furthermore, the inclusion of regional rivals such as Iran and the UAE introduces new potential for friction. Some members, like the UAE and Saudi Arabia, maintain close strategic ties with the West, complicating any attempt to form a unified anti-Western front. Reports from mid-2026 indicated that BRICS had to suspend plans for future expansion due to these sharp internal differences, highlighting the struggle to maintain consensus.
An Engine Sputtering?
A key part of the BRICS appeal was its collective economic dynamism. However, the founding members are facing headwinds. China's economy is grappling with a structural slowdown, Russia's is reoriented towards a war footing, and South Africa and Brazil have experienced sluggish growth. While India remains a fast-growing major economy, the overall economic picture is less rosy than it was a decade ago. This economic fragmentation makes it harder to coordinate on major initiatives and presents a challenge to the bloc's narrative of providing a compelling alternative to Western-led economic models. The group's focus for 2026, under India's presidency, is on resilience and sustainability, reflecting an acknowledgment of these economic challenges.
The Rocky Path to Reform
Institutional reform, particularly the push for de-dollarization, remains a central and contentious topic. Led by China and Russia, there is a strong desire to reduce reliance on the US dollar for international trade and finance, a sentiment amplified by Western sanctions. However, the path forward is fraught with disagreement. The idea of a common BRICS currency has been firmly rejected by India, with Commerce Minister Piyush Goyal stating a clear opposition in August 2026. This stance is driven by economic practicalities and a reluctance to enter a monetary union with a strategic rival like China. Instead, the focus has shifted to more gradualist approaches, such as promoting the use of national currencies for bilateral trade and strengthening institutions like the New Development Bank (NDB) to offer financing in local currencies. The NDB aims to have 30% of its financing denominated in local currencies, insulating members from dollar volatility.
India’s Balancing Act
As the 2026 BRICS chair, India finds itself in a delicate position, trying to bridge the divides within the group. New Delhi is championing an agenda focused on practical cooperation in areas like digital development, sustainable energy, and health, rather than confrontational geopolitics. India's vision for the bloc is one that preserves the strategic autonomy of its members, allowing for cooperation without forcing full political alignment. This means navigating pressure from members like Russia and China for a stronger anti-US stance while maintaining India's own partnerships with Western countries, including through the Quad. India's opposition to a common currency while supporting trade in national currencies is a prime example of this balancing act, seeking to de-risk from the dollar without dismantling the current financial system or ceding monetary sovereignty.
