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BRICS Expansion
Context
India participated in the recent Brics Foreign Ministers' Meeting in Nizhny Novgorod, Russia, marking the first meeting since the expansion of Brics in 2023. The expansion saw Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE joining Brazil, Russia, India, China, and South Africa as full-fledged members. Russia assumed the chairmanship of Brics on January 1, 2024.
BRICS and its Expansion:
- Origins and Objectives: The term BRIC was coined in 2001, but formalized as a bloc in 2009 by Brazil, Russia, India, and China, later joined by South Africa in 2010.
- Initially an economic forum, BRICS aims to create a fairer international order and reform the multilateral system.
- Expansion Dynamics: After 13 years, BRICS expanded in 2023, admitting Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE.
Impact of Expansion:
- The BRICS group now comprises almost:
- 46 per cent of the world's population (with China and India alone accounting for 86 per cent of BRICS)
- 36 per cent of global GDP (of which China alone accounts for 65 per cent of BRICS)
- 25 per cent of world trade, measured in terms of exports.
- This enlargement added USD 2.6 trillion to the group's GDP, reaching USD 28.5 trillion collectively and covering 1% of global output.
- The expansion enhanced BRICS' economic and geostrategic reach, doubling its oil production capacity and accounting for 25% of global exports.
- It also strengthened control over rare earth minerals and projected significant GDP growth for new members by 2050.
Impact and Challenges of BRICS Expansion:
- Economic Influence: Despite BRICS' economic significance, G7 countries still dominate global GDP, accounting for 43.2%. However, forecasts suggest a shift in economic power towards BRICS, especially with the significant growth projected for new members like Egypt and Ethiopia.
- Geopolitical Significance: BRICS seeks to challenge the Western-centric global order by establishing institutions like the New Development Bank. While it aims to reduce dependence on Western-led institutions, challenges remain in implementing a common BRICS currency and dethroning the US dollar.
- Challenges and Limitations: BRICS faces challenges such as overreliance on China's economy, limiting leverage and equality within the group. Bilateral power dynamics between China and India pose complexities, with China's larger economy overshadowing India's influence within BRICS.
India's Interests in BRICS:
- Policy Framework: India's approach to BRICS reflects its policy of "multi-alignment", akin to its historical stance of "non-alignment" during the East-West conflict. This allows India to engage with multiple geopolitical centers rather than aligning strictly with one.
- Counterweight to Russia and China: Within BRICS, India seeks to balance the influence of dominant powers like Russia and China. It aims to represent a counterweight to these nations, particularly in the context of global South politics, where India competes with China for influence among developing countries.
- Bridge Builder to the West: India's role in BRICS also involves acting as a bridge builder to the West. As a member of the Quadrilateral Security Dialogue (Quad), India collaborates closely with the USA, Japan, and Australia to counter China's growing influence in the Indo-Pacific region.
- Challenges and Considerations:
- Diverging Interests: The diverse interests within BRICS, including conflicting agendas between commodity producers and importers like India and China, pose challenges to pursuing collective interests with joint capacities.
- Conflict-Ridden Structure: BRICS expansion further complicates the group's dynamics, intensifying conflicts of interest among member states. India supported the accession of new members, particularly the United Arab Emirates and Saudi Arabia, but balancing these diverse interests remains a challenge.
Fact Box: New Development Bank (NDB)
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