BRICS and India 2026
BRICS and India: Major Decisions, Strategic Significance and the Road Ahead
By Indus IAS Academy
In an increasingly fragmented international order, BRICS has emerged as one of the most important platforms through which emerging economies seek a greater voice in global governance. What began as a grouping of Brazil, Russia, India and China has evolved into a broader platform representing a substantial share of the world's population and economy.
For India, BRICS is not merely an economic grouping. It is an important instrument of strategic autonomy, Global South leadership, economic cooperation and reform of global institutions.
The evolution of BRICS, its expansion and the decisions taken at successive summits have significant implications for India's foreign policy and are therefore highly relevant for UPSC
Civil Services Examination.
What is BRICS?
BRICS originally comprised Brazil, Russia, India and China. South Africa joined the grouping in 2011, transforming BRIC into BRICS.
The grouping operates around three broad pillars:
Political and security cooperation
Economic and financial cooperation
Cultural and people-to-people cooperation
Over the years, BRICS has evolved from an economic grouping into a wider platform dealing with global governance, development, climate change, technology, health, international security and the interests of the Global South.
The expansion of BRICS in 2024 brought in Egypt, Ethiopia, Iran and the United Arab Emirates, while Indonesia became a member in 2025. This expansion has significantly increased the geographical and geopolitical weight of the grouping.
Major BRICS Decisions and Their Impact
1. Creation of the New Development Bank
One of the most important institutional achievements of BRICS was the establishment of the New Development Bank (NDB) in 2015, headquartered in Shanghai.
The NDB was conceived as an alternative source of development finance for emerging and developing economies, particularly for infrastructure and sustainable development.
The idea emerged from the 2014 Fortaleza Summit, alongside the creation of the Contingent Reserve Arrangement (CRA).
Why is the NDB important for India?
India faces enormous requirements for infrastructure, urbanisation, renewable energy and sustainable development.
The NDB provides an additional source of financing and reduces excessive dependence on traditional institutions such as the World Bank and IMF.
The bank has increasingly focused on local-currency financing, infrastructure and sustainable development. At the 2025 Rio Summit, BRICS leaders reaffirmed support for expanding the NDB's membership and strengthening its role in the Global South.
Impact
Greater access to development finance
Support for infrastructure projects
Greater financial autonomy for developing economies
Strengthening of the Global South
Diversification of international development finance
2. Contingent Reserve Arrangement: A Financial Safety Net
BRICS also established the Contingent Reserve Arrangement (CRA) with a committed pool of foreign-exchange reserves.
Its objective is to provide liquidity support to member countries facing short-term balance-of-payments or financial pressures.
The CRA complements existing international financial arrangements and can act as an additional layer of financial protection.
Impact on India
For India, the CRA contributes to:
Greater financial stability
Additional protection during external shocks
Reduced vulnerability to sudden capital outflows
Strengthening of the global financial safety net
3. Expansion of BRICS: From BRICS to a Wider Global South Platform
The 2023 Johannesburg Summit was a turning point.
The leaders agreed to expand BRICS, with Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the UAE invited to join from 2024; subsequent developments resulted in Egypt, Ethiopia, Iran and UAE becoming members, while Indonesia joined in 2025.
The expansion has transformed BRICS from a relatively small grouping into a much broader platform of emerging economies.
Strategic impact
The expansion:
Increases BRICS' demographic and economic weight
Strengthens its representation of the Global South
Expands its energy and resource base
Increases its geographical reach
Gives the grouping greater influence in global institutions
However, expansion has also increased the challenge of maintaining consensus among countries with very different political and strategic interests.
For India, this is particularly important because India's vision of BRICS is that of a non-Western but not anti-Western platform.
4. Reform of Global Governance
A central theme of India's BRICS engagement has been the demand for reforms in institutions of global governance.
India has consistently advocated greater representation for developing countries in:
UN Security Council
IMF
World Bank
WTO
Other multilateral institutions
At the 2025 BRICS Summit in Rio de Janeiro, Prime Minister Narendra Modi highlighted reform of global governance, strengthening the voice of the Global South, peace and security, multilateralism and emerging technologies such as Artificial Intelligence.
Why does this matter?
Many global institutions were designed in the aftermath of the Second World War. The economic and demographic balance of the world has changed considerably since then.
India's argument is simple:
Global institutions must reflect contemporary economic and demographic realities.
BRICS provides India with an additional platform to advance this position.
5. Local-Currency Trade and De-dollarisation Debate
BRICS has increasingly discussed ways to facilitate trade using local currencies.
The objective is not necessarily to create a common BRICS currency in the immediate future. Instead, members have explored mechanisms that can make cross-border payments easier and reduce excessive dependence on a single international currency.
India has supported greater use of national currencies in international trade, while remaining cautious about proposals that could result in a China-dominated monetary system.
This distinction is important.
India's position
India seeks:
Greater payment diversification ≠ abandoning the dollar overnight.
For India, local-currency settlement can:
Reduce transaction costs
Reduce exposure to exchange-rate risks
Facilitate trade with BRICS partners
Improve resilience against financial sanctions and external shocks
At the same time, the creation of a common BRICS currency faces major challenges because of differences in monetary policy, exchange rates, capital controls and economic structures.
6. Cooperation in Digital Payments and Technology
The rise of India's UPI ecosystem has created an important opportunity for India within BRICS.
India has increasingly promoted cooperation in:
Digital payments
FinTech
Digital public infrastructure
Artificial Intelligence
Cybersecurity
Emerging technologies
This gives India an opportunity to present Digital Public Infrastructure (DPI) as a scalable model for developing economies.
At the 2025 Rio Summit, Artificial Intelligence was among the issues discussed under BRICS cooperation.
India's strategic advantage
India can use BRICS to promote:
"Technology for development" rather than technology competition alone.
This fits India's broader Global South diplomacy.
7. Climate Change and Sustainable Development
BRICS has increasingly focused on climate finance, sustainable development and energy transition.
Developing countries argue that climate action cannot be separated from:
Development needs
Poverty reduction
Energy security
Climate finance
Technology transfer
India has consistently highlighted the principle of Common but Differentiated Responsibilities and Respective Capabilities (CBDR-RC).
BRICS provides a platform for emerging economies to coordinate positions on climate negotiations and demand greater access to finance and technology.
8. Health, Agriculture and Food Security
BRICS cooperation has expanded beyond finance and geopolitics.
India has supported cooperation in:
Healthcare
Pharmaceuticals
Traditional medicine
Agriculture
Food security
Pandemic preparedness
Scientific research
Such cooperation is particularly important for developing countries because global crises such as pandemics, food shortages and supply-chain disruptions affect vulnerable populations disproportionately.
What Has BRICS Meant for India?
1. Strengthening Strategic Autonomy
BRICS allows India to maintain productive relationships with countries that have very different geopolitical orientations.
India can simultaneously engage with:
BRICS
G20
QUAD
SCO
Indo-Pacific frameworks
This reflects India's policy of multi-alignment and strategic autonomy.
India does not want to be locked into a single geopolitical bloc.
2. Leadership of the Global South
India has increasingly positioned itself as a voice of developing countries.
Its BRICS engagement complements India's broader Global South diplomacy.
The Johannesburg Declaration explicitly emphasised the importance of strengthening the voice of developing countries in global governance.
For India, BRICS therefore provides an important platform to convert its demographic and economic weight into diplomatic influence.
3. Economic Opportunities
BRICS offers opportunities for India in:
Trade
Investment
Infrastructure
Energy
Technology
Agriculture
Financial cooperation
The NDB can further support infrastructure and sustainable-development projects.
4. Energy Security
BRICS expansion has increased the importance of the grouping in global energy markets.
Russia and several West Asian members are major energy producers, while India and China are among the world's major energy consumers.
This creates possibilities for:
Energy cooperation
Stable supply chains
Investment
Renewable-energy partnerships
For India, this has direct implications for energy security and economic growth.
Challenges for India
BRICS is strategically important, but it is not without limitations.
1. India-China Strategic Competition
The most important challenge is the relationship between India and China.
Both countries cooperate within BRICS while simultaneously competing over:
Border issues
Trade
Technology
Regional influence
Global leadership
Therefore, BRICS cannot be treated as a conventional alliance.
2. Russia-West Conflict
Russia's relations with the West have made BRICS increasingly geopolitical.
India, however, seeks to maintain strong relations with both Russia and Western partners.
Therefore, India must ensure that BRICS does not become narrowly defined as an anti-Western grouping.
3. Internal Diversity
BRICS members have different:
Political systems
Economic structures
Foreign-policy priorities
Security interests
Relations with the United States and Europe
Achieving consensus among such diverse countries is difficult.
The larger the grouping becomes, the greater this challenge may become.
The 2025 Rio Summit: A New Phase
The 17th BRICS Summit, held in Rio de Janeiro in July 2025, focused on Global South cooperation, multilateralism, governance reform, sustainable development and emerging technologies.
India used the summit to reiterate its support for reforming global governance and strengthening the voice of developing countries.
The summit also reinforced the role of the New Development Bank in financing sustainable development and infrastructure in the Global South.
Thus, BRICS is increasingly moving beyond the original concept of an economic grouping towards a wider platform for global governance reform and South-South cooperation.
India and BRICS: The Road Ahead
As BRICS expands, India's strategy should focus on five priorities:
1. Keep BRICS development-oriented
India should ensure that BRICS remains focused on development, trade, technology and cooperation rather than becoming a rigid geopolitical alliance.
2. Strengthen the NDB
India should advocate greater financing for infrastructure, climate action and sustainable development.
3. Promote interoperable digital systems
India can leverage its experience with UPI and Digital Public Infrastructure to strengthen digital cooperation among developing economies.
4. Push for institutional reforms
India should continue advocating reforms of the UN Security Council, IMF and World Bank.
5. Balance China
India must ensure that the expansion of BRICS does not translate into disproportionate Chinese influence over the organisation.
BRICS is no longer simply an economic acronym; it is becoming an important institution of the emerging multipolar world order.
For India, its value lies not in creating an alternative bloc against the West but in creating greater strategic space, economic resilience and diplomatic influence.
The real test for India will be to balance three objectives:
Strategic autonomy + Global South leadership + constructive engagement with all major powers.
The success of BRICS will ultimately depend not on the number of countries it adds, but on its ability to translate declarations into institutions, investments and tangible outcomes.
For UPSC aspirants, BRICS should therefore be studied not merely as an international organisation, but as a case study in India's foreign policy, multipolarity, strategic autonomy, global governance reform and the rise of the Global South.
UPSC Mains Takeaway
GS Paper II – International Relations
"BRICS reflects the transition from a predominantly Western-centric international order towards a more multipolar system. For India, it is simultaneously a platform for Global South leadership, strategic autonomy and reform of global governance."
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| Media Team | Indus Academy
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