Aspirant Academy

Polity, Governance and Current Affairs

BRICS

Global Platforms: UN, WTO, EU, ASEAN, BRICS, G-20, QUAD, I2U2, AUKUS, DAKSHIN

Paper III · Unit 1 Section 6 of 13 0 PYQs 30 min
Topic Preview Subject Inventory

Public Section Preview

BRICS

5.1 BRICS Origins and Evolution

From Concept to Institution

The BRIC concept was coined by Goldman Sachs economist Jim O'Neill in a 2001 paper identifying the four largest emerging economies. The first BRIC Summit was held in 2009 in Yekaterinburg, Russia (Brazil, Russia, India, China). South Africa joined in 2010 → BRICS.

Key institutions:

  • New Development Bank (NDB): Created 2014; operational 2015; HQ Shanghai; authorised capital $100 billion; new members: Bangladesh, UAE, Egypt, Uruguay
  • BRICS Contingent Reserve Arrangement (CRA): $100 billion emergency forex swap facility (India's share: $18 billion)
  • BRICS Business Council, BRICS Think Tanks Council, BRICS Women's Business Alliance

15th BRICS Summit — Johannesburg Expansion (August 2023)

Six new members were invited to join from 1 January 2024: Egypt, Ethiopia, Iran, Saudi Arabia, UAE, and Argentina. Argentina's Milei government later declined.

From January 2024, BRICS = 10 active members:
Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, Saudi Arabia, UAE (Argentina declined).

Significance of expansion:

  • Combined GDP (PPP): larger than G7
  • Controls 40% of global oil supply (adding Gulf states)
  • 3.5+ billion people (44% of world population)
  • Growing push to de-dollarisation — trade in national currencies (India-Russia trade in INR/RUB)

16th BRICS Summit — Kazan, Russia (October 2024)

  • PM Modi–Xi Jinping bilateral — first formal meeting in 5 years
  • India-China LAC patrolling agreement reached in this context
  • "BRICS Pay" payment system discussed as dollar alternative
  • "Partner Country" concept introduced — 13 invited partner countries

5.2 India's Position in BRICS

India is a co-founder and key driver of BRICS credibility. Key dynamics to note:

  • India benefits from NDB financing for infrastructure (urban metro, renewable energy projects approved)
  • India has pushed for BRICS to focus on development, not anti-Western rhetoric
  • India-China tensions complicate BRICS; India ensures the grouping stays focused on development rather than becoming an anti-Western military bloc
  • India supports BRICS expansion including Global South nations