Academic Script

Lesson 46

India and BRICS

Introduction

The BRICS acronym expands to name the five countries that constitute its composition-Brazil,

Russia, India, China and South Africa. Initially termed as the ‘BRIC’ in 2001 to denote the four

future largest economies of the world in 2050, South Africa joined the group later in 2010. The

BRICS has set important goals for itself at its inception ranging from political and security, to

economic and financial, and cultural and people-to-people exchanges. The organization emerged

with the purpose to bring to the attention of the world the priorities of the developing world. The

BRICS provides a unique opportunity to these developing countries to deepen cooperation on a

numerous issues that are deemed as crucial to their economic growth and national development.

As developing countries with significant requirements in trade, foreign investment, healthcare

capacity development, and energy demand, BRICS, as an informal organization without a formal

charter, presents significant scope for addressing these key issues. Despite significant differences
and mutual competition between the members, they find rationality in remaining engaged in the

organization. BRICS was originally formed with the aim of highlighting the priorities of the

developing world. It offers a platform for cooperation among these nations on a wide range of

vital issues, even though they have distinct challenges and areas of competition. This

underscores why BRICS continues to be relevant and functional for its member countries.

List of the Summits

Till date a total of 15 BRICS summits have been held.

Host Nation Date Chairmanship

1. Yekaterinburg, Russia 16 June 2009 Dmitry Medvedev

2. Brasília, Brazil 15 April 2010 Luiz Inácio Lula da

Silva

3. Sanya, China 14 April 2011 Hu Jintao

4. New Delhi, India 29 March 2012 Manmohan Singh

5. Durban South Africa 26–27 March 2013 Jacob Zuma

7. Ufa, Russia 8–9 July 2015 Vladimir Putin

8. Benaulim, (Goa) India 15–16 October 2016 Narendra Modi

9. Xiamen, China 3–5 September 2017 Xi Jinping

10. Johannesburg , South 25–27 July 2018 Cyril Ramaphosa

Africa

11. Brasília, Brazil 13–14 November Jair Bolsonaro

2019

12. Saint Petersburg Russia July 2020 Vladimir Putin

13. India June 2021 Narendra Modi

the evolutionary process of BRICS since its first summit in 2009, noted several distinct features

of the institution. Ambassador Harish highlighted that the cooperation within BRICS extends to

well-defined areas. Notably, it is the only plurilateral group with its own bank, the New

Development Bank (formerly called the BRICS Development Bank). BRICS holds significant

importance in various dimensions. It represents 42% of the world's population, covers 30% of

the world's land area, contributes to 24% of the global GDP, and accounts for 16% of

international trade. India, as a global power, has a crucial role to play in shaping the institution.

However, India faces several challenges within BRICS, primarily related to the India-China

rivalry.

The India-China rivalry is a central issue affecting India's role in BRICS. In the words of S.

Jaishankar, this bilateral relationship is going through a "particularly rough patch," which has led

some analysts to suggest that India is drifting closer to the Quadrilateral Security Dialogue (the

Quad), which comprises the US, Japan, Australia, and India. While India's growing cooperation

with the Quad has raised concerns, it would be inaccurate to claim that India's alignment with the
Quad makes it a weak believer in BRICS. India continues to be actively involved in both

forums, balancing its interests in BRICS with its engagement in efforts to uphold a free and open

Indo-Pacific region.

India shares close economic and cultural ties with the BRICS members and attaches high

importance to the BRICS platform for coordination, cooperation and consultation on evolving

issues. The involvement is directed towards broad-based international engagement in building a

better world. For its chairship, India had adopted the overall theme of ‘BRICS@15: Intra-BRICS

Cooperation for Continuity, Consolidation and Consensus’ and prepared and received approval

for the BRICS Innovation Action Plan 2021-24 as a guide to cooperation in key deliverables in

the field of science and technology. In fact, India had first mooted the idea for the creation of the

New Development Bank (NDB) during the fourth BRICS Summit held in March 2012 in New

Delhi to meet the development of funding requirements for the five members as well as other

developing economies, especially in the field of infrastructure connectivity projects.

Additionally, BRICS has also created the Contingency Reserve Arrangement aimed at ensuring

liquidity for member states when confronted by short-term balance of payment crises.
India’s role in BRICS highlights that it has used the platform to convey to the remaining

members that cooperation on all dimensions of security, not just economic security, is necessary

for overall global and regional development. In 2012, when India chaired the BRICS Summit in

New Delhi, it raised security as an agenda item that required joint addressing. Also, in 2012, at

the behest of the then Indian Finance Minister, the BRICS commissioned a joint working group

to study the viability of setting up a BRICS Development Bank for mobilizing resources for

infrastructure and sustainable development projects in BRICS economies and other developing

countries. Following this, the intention to set up the NDB was announced at the fifth BRICS

Summit in Durban in 2013. India, which has been a long-time victim of terrorism, with many

instances of state-sponsored terrorism from Pakistan, raised this issue. However, China, due to its

historical ties to Pakistan, has not been very supportive of using BRICS as a forum for discussing

terrorism-related issues. China's stance on terrorism-related discussions in BRICS presents a

challenge, given its longstanding ties to Pakistan, which influence its approach to these matters

within the BRICS framework.

Against the backdrop of the COVID-19 pandemic, the BRICS nations had both ample scope and

responsibility to resolve past differences and issues, working collectively to overcome the
pandemic and its wide-ranging adverse effects. In this endeavour, India can play a pivotal role in

enhancing partnerships among the BRICS member countries. Several international economic

outlooks, including the IMF's World Economic Outlook (WEO), OECD outlook documents, and

the World Bank's official reports, have predicted highly favourable economic growth rates for

India, beginning in 2021 and extending into 2022 and possibly beyond. India has emerged as a

prominent responder to climate change on the global stage. It leads the International Solar

Alliance (ISA) grouping and has announced plans to achieve 'net-zero carbon emissions' by

2070. Additionally, India has been a significant producer, manufacturer, and supplier of essential

COVID-19 vaccines to meet global demands. With these achievements, India is well-positioned

to assume a leading role in advancing BRICS cooperation as a regional platform in the

post-COVID world, fostering economic progress and more resilient supply chains for its member

nations.
India and BRICS

In 2016, at the BRICS Summit hosted at Goa, India articulated its objectives that it desires to

achieve through the forum: a) reforming international institutions; b) gathering support for its

entry into the UN Security Council; c) obtaining the support of the BRICS states to counter

terrorism; d) enhancing economic cooperation with other BRICS states; e) institutionalisation of

intra-BRICS initiatives.

India has worked on these objectives to varying degrees by engaging with regional institutions

and promoting good governance for the greater regional good. Historically, India's role in the

BRICS organization had been relatively lukewarm before the COVID-19 pandemic. However,

this dynamic has strong potential to change in the future as India assumes a more proactive role

in the Indo-Pacific region. India's strategic alignment with Western countries, along with its

participation in initiatives like the Quadrilateral Security Dialogue (Quad), Global Alliance for

Vaccine Partnership(GAVI ), and the International Solar Alliance ( ISA), extends its influence
globally and places greater responsibility on India's shoulders. This global engagement pushes

India to rise above regional differences and tensions, fostering a broader vision of global

consciousness for the development of humanity as a whole.

In the post-COVID world, most global economic and financial institutions have projected India's

economic growth to be the highest among all BRICS nations. This economic growth is expected

to facilitate India to play a more significant role within the BRICS. India's initiative to establish a

BRICS bank as an alternative funding agency to the IMF for crisis lending has contributed to

"de-dollarizing" financial relations among BRICS countries. While China primarily seeks to

increase the share of the Yuan currency in interstate trading and exchange, India supports the

importance of increasing the share of other currencies, apart from the dollar, in international

exchanges to reduce reliance on the Western-dominated global economic order. Thus, India lends

issue-based support and seeks greater regional parity through BRICS for the global South

without harbouring revisionist ambitions for the global order like Russia and China.
Despite some limited progress by the BRICS platform in advocating for the importance of

providing growth opportunities to developing nations, the organization faces challenges due to

its internal differences. Notably, continued hostilities between India and China significantly

diminish the organization's effectiveness. BRICS official statements have offered lukewarm

support for India's (and Brazil's) membership in the UN Security Council. However, when such

resolutions are presented at the UN, China consistently opposes them. Additionally, China

opposes India's membership in the Nuclear Suppliers Group (NSG), citing India's refusal to sign

the Nuclear Non-Proliferation Treaty (NPT) and the Comprehensive Test Ban Treaty (CTBT) as

reasons for its objection.

India, in response, takes measures to keep China out of its immediate neighbourhood. This

includes denying China permission to join regional organizations like the South Asian

Association for Regional Cooperation (SAARC) and the Indian Ocean Rim Association (IORA).

However, India acknowledges the undeniable reality of China's presence in the Indian Ocean

region. While both countries have overlapping interests and areas of cooperation, moves and

countermoves between India and China contribute to growing regional tensions. These tensions

persist despite the existence of shared interests. Efforts to counter security threats are more

actively implemented in the Shanghai Cooperation Organization (SCO) than within the BRICS

framework. This is primarily because Central Asia is geographically close to the conflict-ridden

Middle East, and the region holds significance for both Russia and China due to its abundant

energy reserves. As a result, BRICS faces challenges due to these dynamics. BRICS carries the

potential to emerge as a strong regional framework for regional cooperation. India, in particular,

has gained prominence in the eyes of the world and within the organization over some time.
However, India's role in the organization depends on how it deals with the impact of the

pandemic.

India suffered significantly during the second wave of COVID-19 infections in 2021, which

compounded the challenges stemming from the first wave that had already dealt a severe blow to

the Indian economy. To highlight the cultural appeal of its rich natural resources, India has

launched various schemes and initiatives. These include the Dekho Apna Desh initiative and

offering the first five lakh visas for free to attract tourism and recognition. These efforts are in

line with India's overarching vision for post-pandemic recovery, Atmanirbhar Bharat. India has

introduced several schemes, including Digital India, Start-Up India, and Atmanirbhar Bharat

Rozgar Yojana.

Additionally, the government has implemented major fiscal policy measures such as tax relief,

duty waivers on medical equipment, government-backed credit guarantees, and financial

transfers to sub-national governments, all aimed at boosting economic recovery more quickly

and effectively. The post-pandemic world is expected to differ significantly from the

pre-pandemic one. Fragile economic situations are likely to intensify geopolitical tensions as
each country, in its desperate need for improvement, may push lesser developed nations into

uncomfortable compromises. This global race for resources is anticipated.

Trust and confidence in international and regional organizations have reached all-time lows.

Major blows have been dealt to the credibility of the UN, WHO, and the EU. For instance, the

US withdrew funding from the WHO at the height of the coronavirus crisis, and several EU

members resorted to premature border closures without seeking the regional body's guidance.

The global community's preparedness for a health crisis was found wanting, leading to limited

support for other nations. India, for example, received faulty test kits from China, and during the

devastating second wave, it had to reduce exports of vaccines and oxygen cylinders due to

shortages in supplies to meet domestic demand. This lack of preparedness and limited support

left international trust and cooperation in short supply. Contributions to international and

regional organizations are likely to fluctuate as economies face crises in the near future.

The ability of BRICS to survive and thrive in this uncertain atmosphere remains to be seen. The

group faces the challenge of building trust, particularly in light of mounting differences between

India and China. The ongoing differences between India and China pose a significant challenge.
Resolving these differences is essential for maintaining the cohesion and effectiveness of the

BRICS group. The global landscape is undergoing significant changes, and the ability of

international organizations and groups like BRICS to adapt and address these challenges will

shape their future relevance and success.

15th BRICS Summit and Expansion of BRICS

The 15th BRICS summit was held in Johannesburg, South Africa. The summit included the five

original BRICS members: Brazil, Russia, India, China, and South Africa. During this summit,

BRICS took a significant step by inviting six new countries to join the group. These new invitees

include Iran, Saudi Arabia, The United Arab Emirates (UAE), Egypt, Ethiopia and Argentina.

BRICS is known for advocating for multipolarity and asserting strategic autonomy in

international relations. The summit reaffirmed these principles and highlighted the group's

commitment to shaping a more representative and fairer international order. The inclusion of
Saudi Arabia and Iran from West Asia is significant due to their substantial energy resources.

This is crucial for energy cooperation and trade within BRICS.

Egypt and Ethiopia's strategic locations in the Horn of Africa and the Red Sea region add to the

geopolitical significance of BRICS, particularly in relation to critical maritime trade routes.

Argentina's inclusion strengthens BRICS' presence in Latin America, a region of interest for

global powers. This bolsters the group's economic influence. Saudi Arabia and the UAE have

been pursuing more independent foreign policy paths since 2020, asserting their sovereignty and

national interests. The UAE has normalized ties with Iran and aims to expand its maritime

presence in key strategic areas, which can open opportunities for regional economic cooperation.

Iran's inclusion in BRICS offers prospects for regional economic cooperation and the revival of

connectivity projects, such as those involving the Chabahar port, in which India is involved. The

expansion of BRICS adds considerable geostrategic value to the grouping, with a focus on

shaping a fairer and more representative international order.

After this expansion, BRICS now accounts for a substantial 42 per cent of the world's population

and commands 36 per cent of the global GDP. This demographic and economic clout signifies

their rising prominence on the world stage. Initially formed as an economic alliance, BRICS

emerged as a response to the U.S.-led global dominance. Its purpose was to provide burgeoning

nations in the Global South an alternative to Western institutions, serving as a vital

counterbalance and fostering a more diverse and inclusive international order. The expansion of

BRICS significantly elevated its collective share of global oil production per day. This surge

catapulted their combined contribution from 20.4% to a substantial 43.1%, marking a notable

shift in the global oil market dynamics. This growth underscores the group's increasing influence

in shaping international energy landscapes. However, BRICS expansion may dilute India's
influence within the organization as new members join, potentially diminishing its role as a

leader in the group.

The expansion of BRICS could maximize China's influence within the group, as it may have

stronger partnerships with some of the new members. This could potentially shift the balance of

power within the bloc in China's favour. BRICS expansion may create a hostile environment for

India in other international forums, where an anti-Western bloc involving Russia, China, Iran,

and Saudi Arabia could compromise India's balancing acts and consensus-building efforts.

However, India sees some positive developments in the expansion, with three key partners -

Egypt, Saudi Arabia, and the UAE - among the new members.

Notably, the majority of these additions are in the Middle East, aligning with India's strategic

interests in energy, trade, and geopolitics, enhancing New Delhi's engagement in the region.

Setting aside speculations, it is a fact that BRICS expansion has the potential to enhance Indian
interests, granting New Delhi increased influence with nations it is eager to strengthen ties with,

thereby bolstering its diplomatic clout.