BRICS VIEW FROM INDIA

INTRODUCTION
1. Genesis of BRICS. The term BRICS was first used by Jim O’Neill of Goldman Sachs in 2001 to highlight the economic potential of Brazil, Russia, India and China. The grouping comprising the 4, was formalized in 2006 at the G-8 Outreach Summit in St. Petersburg. Its focus would be economic development, South-South cooperation and reforming global governance. South Africa joined the group in 2010.

2. Objectives. BRICS aims to : -
(a) Foster economic growth and reduce global economic disparities.
(b) Reform multilateral institutions like the UN, WB and IMF to reflect geopolitical and geoeconomic realities of the day.
(c) Serve as a platform for developing nations to participate effectively in global governance.

3. Evolution. The addition of five new members in 2023, and 13 partner states in 2024, have strengthened BRICS. Gradually, BRICS has evolved into a potent geopolitical and geoeconomic force, surpassing the G-7 in GDP and it could even exceed G-7 in global trade by 2026. BRICS is working at the same time to develop effective and practical mechanisms to meet its objectives.

4. Surya Foundation International Affairs Think Tank, comprising domain experts, carried out an in-depth study of the “BRICS VIEW FROM INDIA” and arrived at some recommendations, enumerated below, for the consideration of the government.

Major Achievements 5. Institutional Growth. The establishment of the New Development Bank (NDB) provides an alternative source of funding for infrastructure and sustainable development projects. Initiatives such as the Contingent Reserve Arrangement (a financial safety net established by BRICS nations) strengthen financial resilience.

6. Global Influence. Most BRICS members are also members of G-20 and influence the G20 agenda, prioritizing development alongside financial stability. The bloc expanded its reach by inviting new members, including nations from Africa and the Gulf.

Challenges
7. Geopolitical Tensions
(a) India-China border dispute, particularly the Galwan Valley clash, Russia Ukraine war have tested the synergy of the group’s ambitions.
(b) Divergent priorities among members make consensus-building a complex process.
8. Economic Disparities
(a) China’s dominance, contributing 70% of BRICS’ GDP, overshadows other members, particularly India, which has the second-largest economy within the bloc.
(b) Limited intra-BRICS trade (6-7%) and growing trade imbalances, especially between India and China, highlight economic asymmetries.

BRICS AND THE GLOBAL SOUTH
9. Voice for the Global South. BRICS positions itself as a champion for developing nations, addressing inequities in global governance. It advocates reforming the Bretton Woods institutions and fostering equitable growth.

10. Anti-West or Non-West. While BRICS promotes equity and multipolarity, its initiatives such as calls to reduce dependency on the dollar, NDB and currency reserve mechanism are perceived by Western group as Anti West. President elect Donald Trump has issued a warning to BRICS that US will impose a 100% tariff if they de dollarize. Many member nations including India have stressed that the Group must be seen as Non-West and not anti-West.

11. Navigating the Global South Objectives: BRICS aligns its actions with the aspirations of the Global South by :-
(a) Addressing climate change and sustainability.
(b) Advocating equitable access to technology and finance.
(c) Working for greater participation of developing economies and emerging markets in global and plurilateral mechanisms.

Comparative Roles of BRICS and G20
12. Shared Objectives, Distinct Approaches.
(a) The G20 addresses global financial stability and macroeconomic policies, offering a broader platform.
(b) BRICS focuses on developmental issues and works as a platform of Global south to engage with G-20.

13. Influence on Global Governance. BRICS nations have worked to steer the G20 towards prioritizing issues like climate resilience, sustainable development, and resource equity. However, its role in multilateral reforms is driven often by national agenda.

Achievements Economic Cooperation/Integration within BRICS
14. Financial Mechanisms
(a) The NDB has financed projects worth billions, fostering economic growth across member nations.
(b) Efforts to establish a BRICS payment system and promote trade in local currencies are underway.

15. Sectoral Collaboration. Initiatives in renewable energy, digital infrastructure and technology sharing are driven by common national aspirations.

Unmet Expectations
16. Trade Imbalances
(a) India’s trade deficit with China is a major concern, with Chinese exports to India far exceeding imports.
(b) Trade and investment related issues within BRICS need to be addressed to develop economic synergy.

17. Intra-BRICS Trade. Despite efforts, intra-BRICS trade remains low, reflecting a lack of comprehensive economic integration.

India’s Role in BRICS
18. Opportunities for Leadership. India’s unique positioning as a democratic, developing nation enables it to:

(a) Bridge the divide between the Global North and South.
(b) Advocate inclusive growth and multilateral reform.


(c) Lead initiatives in digital infrastructure, renewable energy and sustainable development.

19. Geopolitical Pressures. China limits India’s strategic autonomy within BRICS.

Bilateral Competition/Complementarity with China
20. Economic Rivalry. China’s economic dominance in BRICS poses challenges for India:-
(a) Its Belt and Road Initiative (BRI) extends influence across developing nations.
(b) India needs to develop autonomous growth dynamics to enhance its leadership capabilities and narrow space for China to unilaterally take over BRICS

21. Strategic Complementarity. Despite competition, India and China can collaborate on :-
(a) Renewable energy and climate action.
(b) Digital financial systems and technology integration.
(c) Work on a common financial infrastructure for the Global South.

Kazan Declaration
22. Key Highlights. The Kazan Declaration reaffirmed BRICS’ commitment to :-
(a) Sovereign equality, democracy and inclusivity.
(b) Reforming global governance, sustainable development and addressing climate challenges.

Role of BRICS Chamber of Commerce and Industry (BRICS CCI)
23. Strengthening Regional Trade and Investment. The BRICS CCI has been instrumental in :-
(a) Promoting trade delegations and business partnerships.
(b) Supporting SMEs and start-ups through capacity-building initiatives.

24. Challenges for Indian Industry

(a) Bureaucratic hurdles and limited access to credit reduce the competitiveness of Indian businesses.
(b) Resistance to competing with China hampers innovation and growth.

1. Strengthen BRICS Governance
Establish a BRICS Secretariat to improve coordination and decision-making. India should take the lead in hosting it. A Monitoring Mechanism should be created to track the implementation of agreements.

2. Enhance Economic Cooperation
Efforts should be made to introduce local currency trade and digital financial systems like India’s UPI within BRICS platforms. Diversify export baskets by targeting sectors like pharmaceuticals, IT and renewable energy.

3. Reduce Economic Dependence on China
Incentivize domestic manufacturing and R&D to reduce reliance on Chinese imports. Develop policies to attract Foreign Direct Investment (FDI) in high-value sectors.

4. Foster Collaboration with the Global South Work on economic and strategic collaboration within the developing economies while avoiding an anti-West stance. Support initiatives addressing climate resilience, technology access and sustainable development.

5. Leverage India’s Leadership Use India’s chairmanship in 2025 to steer BRICS towards inclusivity and equity. Launch India-led initiatives like a BRICS Green Energy Hub or Digital Public Infrastructure Centre.

6. Address Security Concerns. Push for a stronger position on counterterrorism.

7. Reframe the Narrative Position BRICS as a collaborative partner of the West to enhance global credibility. Highlight India’s strengths in technology, innovation and governance.