India is hosting the 18th BRICS summit in New Delhi, bringing together an expanded group of 11 members and 10 partner countries. The group now represents almost half of the global population and approximately 40% of the global GDP, surpassing the G-7. The summit's official theme under India's chairmanship is "Building for Resilience, Innovation, Cooperation and Sustainability." The event is seen as an opportunity for India to project its global diplomatic influence, particularly in navigating relations with various regional blocs.
The summit is expected to address key issues impacting the global economy, including alternative supply chains, conflict resolution, green finance, technology, digital public infrastructure, and increased representation in global financial institutions. A joint declaration will be released at the summit's conclusion, with its content closely scrutinized for indications of the bloc's stance on these matters.
Divisions exist within BRICS, particularly concerning de-dollarization and the creation of a common BRICS currency. While Russia and Iran advocate for de-dollarization as a means to counter Western sanctions, India and Brazil oppose the idea of a joint currency, with India's Commerce Minister Piyush Goyal explicitly stating no plans for one. Instead, India promotes greater cross-border payments and has pushed for linking the digital currencies of BRICS countries to facilitate international trade and tourism payments. Brazil also emphasizes flexible payment channels using existing currencies like the dollar, euro, or local currencies, rather than a new common currency, dismissing claims that BRICS is pursuing de-dollarization.
India's approach within BRICS is characterized by strategic autonomy, engaging with members like China, Russia, and Iran while maintaining strong ties with the U.S. and Europe. Its relationship with Russia is crucial for defense and energy, particularly with discounted oil from Russia. However, India's unresolved border dispute with China casts a shadow over its BRICS engagement, leading to resistance against initiatives that could legitimize Chinese infrastructure projects or financial dominance, such as a common BRICS currency potentially dominated by China. India also opposes Pakistan's potential membership due to their adversarial relationship.
Despite internal tensions, India aims to keep BRICS relevant to the Global South and prevent it from becoming solely a Chinese-led or anti-Western coalition. The complexity of balancing relationships with China and Russia, while maintaining strategic autonomy, highlights the limitations of BRICS as a unified political project.
