Setting the Stage in New Delhi
India is hosting the annual summit on September 12-13 at the Bharat Mandapam in New Delhi, marking its fourth time as chair of the influential bloc. The theme for this year's presidency is “Building for Resilience, Innovation, Cooperation and Sustainability,”
signalling a focus on practical outcomes over ideological debates. Leaders from the now 11-member group are arriving, including Russia's Vladimir Putin and China's Xi Jinping, for what will be Putin's first in-person BRICS summit outside Russia since 2022. The agenda is packed, focusing on everything from strengthening supply chains and reforming global governance to cooperation in artificial intelligence and health.
An Expanded Bloc, New Dynamics
This summit is the first to feel the full weight of the group's recent expansion. Since 2024, Egypt, Ethiopia, Iran, Saudi Arabia, the UAE, and Indonesia have joined the original five members. This has transformed BRICS into a bloc that represents nearly half the world's population and around 40% of global GDP. The expansion brings significant economic and demographic heft but also introduces new complexities. Integrating these diverse economies and political systems is a key challenge, with a focus on socializing new members rather than further expansion for now. The inclusion of major energy producers like Saudi Arabia and the UAE alongside Iran introduces both opportunities for cooperation and potential friction, especially given ongoing geopolitical tensions in the Middle East.
The Economic Agenda: Beyond the Dollar
A central talking point is the push to increase the use of national currencies in trade among member nations. While the idea of a single BRICS currency has been officially opposed by India, there is a strong emphasis on creating alternative payment mechanisms to reduce dependence on the US dollar for international transactions. India is advocating for linking the members' digital payment systems, like its own Unified Payments Interface (UPI), to facilitate smoother and cheaper cross-border trade. The New Development Bank (NDB), the bloc's financial institution, continues to play a key role in this by providing funding in local currencies. This pragmatic approach aims to build financial resilience without directly challenging the dollar's global dominance.
India's Delicate Balancing Act
As the host and a founding member, India is navigating a delicate diplomatic path. Its leadership role is complicated by its membership in other strategic groupings like the Quad, which includes the United States, Japan, and Australia. New Delhi aims to position BRICS as a constructive forum for the Global South, focused on development and cooperation rather than creating an anti-Western alliance. This involves steering discussions toward common ground on issues like trade, technology, and sustainable growth, while managing the more confrontational stances of members like Russia and China. India's ability to build consensus among these diverse nations will be a crucial measure of the summit's success and will be closely watched by the international community.
