BRICS, New Development Bank (NDB), Contingent Reserve Arrangement (CRA), BRICS Summit, BRICS+ Format, BRICS Outreach, South-South Cooperation, Shanghai Declaration, BRICS Pay, BRICS Currency Proposal
Multipolar World Order, Global Institutional Reform, India-China Dynamics, Development Finance, Global South, Energy Security, Strategic Autonomy, BRICS Expansion
May 8, 2025
9
mins read
BRICS is an acronym for five major emerging economies: Brazil, Russia, India, China, and South Africa. In 2025, BRICS welcomed Indonesia as its newest member, expanding its reach in Asia and boosting its representation among developing economies. Originally conceptualized by Goldman Sachs in 2001 (as BRIC), the grouping evolved into a formal intergovernmental organization focused on multipolarity, development finance, reform of global institutions, and South-South cooperation. For UPSC aspirants, BRICS is critical for understanding international relations, economic diplomacy, and India's global strategic interests. Understanding BRICS is essential for cracking the UPSC exam, including the IAS prelims and mains.
The acronym "BRIC" was coined by Goldman Sachs economist Jim O’Neill in 2001, highlighting the potential of emerging economies (Brazil, Russia, India, China) to reshape the global economy.
The first formal diplomatic meeting among BRIC countries occurred on the sidelines of the UNGA in 2006 (St. Petersburg).
South Africa joined in 2010, making it BRICS — formally bringing Africa into the bloc.
BRICS evolved from an economic term to a structured diplomatic platform focused on global financial reform, inclusive development, and cooperation in health, education, and security.
In 2025, BRICS expanded further by including Indonesia, a strategic Southeast Asian power, underscoring the group's transition into BRICS+.
Table of content
Annual BRICS Summit: The primary decision-making forum where heads of state deliberate on global economic, political, and security issues.
New Development Bank (NDB): Established in 2014 with an initial capital of $100 billion to finance infrastructure and sustainable projects in BRICS and other developing countries. Headquartered in Shanghai.
Contingent Reserve Arrangement (CRA): A $100 billion liquidity mechanism to safeguard against global financial volatility and currency crises.
BRICS Business Council: Enhances trade and investment flows between member countries through private sector engagement.
BRICS Think Tanks Council & Academic Forum: Promote policy dialogue and research collaboration.
BRICS+ Format: Introduced to build wider South-South engagement with non-member developing nations and regional blocs.
Indonesia Joins BRICS (2025): With its large economy and ASEAN influence, Indonesia’s inclusion strengthens BRICS’ representation in Southeast Asia, bringing strategic access to maritime routes and new regional partnerships.
De-Dollarisation Agenda: Member nations are exploring the creation of a BRICS common currency or transaction platform (e.g., BRICS Pay) to reduce dependence on the US dollar.
Digital Cooperation Initiatives: Countries are working on creating shared frameworks for digital public infrastructure, cybersecurity cooperation, and AI ethics.
NDB Expands Lending Base: The bank has started funding large-scale renewable energy, healthcare, and transport projects in Africa, Latin America, and Southeast Asia.
Strategic Dialogue on Global Governance: BRICS is jointly advocating reforms in the United Nations, WTO, IMF, and World Bank to increase developing countries' representation.
1. Finance
New Development Bank (NDB): Established with an initial corpus of $100 billion to finance infrastructure and sustainable development projects.
Contingent Reserve Arrangement (CRA): A $100 billion emergency reserve fund to protect member economies against global liquidity shocks.
Local Currency Lending: Recent NDB policy shifts aim to fund more projects in local currencies, promoting financial sovereignty.
2. Security and Strategic Dialogue
Counter-Terrorism Working Group: Focuses on intelligence sharing, capacity building, and coordinated action on terrorism financing.
Cybersecurity Cooperation: Annual consultations and policy harmonization to mitigate cyber threats.
Peacekeeping Consultations: BRICS members engage in multilateral forums like the UN Peacekeeping dialogue.
3. Health and Pandemic Response
BRICS Vaccine R&D Centre: Facilitates joint vaccine development, sharing of best practices, and health technology exchange.
Joint Task Force on Pandemic Management: Initiated during COVID-19 to collaborate on health protocols, supplies, and medical research.
4. Technology and Innovation
BRICS Innovation Network: Promotes cooperation in AI, space research, and green technologies.
Digital Public Infrastructure: Inspired by India’s DPI, BRICS is working on interoperable systems across member states.
5. Sustainable Development and Climate
Clean Energy Collaboration: Shared research on solar, wind, and green hydrogen technologies.
Environment Working Group: Facilitates joint climate action plans, including carbon reduction goals.
6. Cultural and People-to-People Exchange
BRICS Games and Film Festival: Strengthen soft diplomacy and cultural understanding.
Youth Summit & Academic Forum: Encourages collaboration among students, scholars, and young professionals.
India’s participation in BRICS is driven by its ambition to amplify the voice of developing countries, strengthen multilateralism, and safeguard its strategic autonomy. Its role has evolved into that of a proactive contributor and a balancing force within the grouping:
Champion of the Global South: India represents the collective aspirations of developing countries, using BRICS as a platform to advocate for fairer global trade, climate finance, affordable healthcare, and technological access.
UNSC Reform Advocacy: Through coordinated statements and diplomatic support within BRICS, India builds momentum for permanent membership in the United Nations Security Council and broader reform of multilateral institutions.
Key Role in NDB: As a founding member, India plays a decisive role in the governance and strategic direction of the New Development Bank, with Indian projects among the top recipients of its funding.
Leadership in Health and Pandemic Preparedness: India co-leads the BRICS Vaccine R&D Centre and has championed equitable access to medicines, leveraging its global pharmaceutical manufacturing capabilities.
Digital Public Infrastructure (DPI) Sharing: India shares its success stories like UPI, CoWIN, and Aadhaar with other BRICS members, helping build digital capacity across the Global South.
Energy and Climate Diplomacy: India leverages BRICS to advance its climate agenda — from promoting solar energy through ISA collaboration to pushing joint research in green hydrogen and clean fuels.
Strategic Balance in Expansion: India supports the idea of BRICS expansion but remains cautious to ensure new entrants align with the group’s developmental and democratic priorities, and do not dilute India’s influence.
BRICS plays a crucial role in furthering India’s foreign policy goals and enhancing its presence on the global stage:
Multilateral Leverage: Offers India a voice in shaping global rules outside Western institutions, increasing its bargaining power.
Access to Infrastructure Financing: New Development Bank helps fund key Indian projects in clean energy, urban development, and health.
Engagement with Global South: Strengthens India’s leadership role in championing the interests of developing nations.
Strategic Dialogue with China and Russia: Allows issue-based cooperation despite existing tensions.
Digital and Green Diplomacy: Enables India to promote models like UPI, Aadhaar, CoWIN and push for joint climate action.
Despite its ambitions, BRICS faces several structural, strategic, and ideological challenges that affect its coherence and effectiveness:
Geopolitical Frictions: One of the most persistent challenges is the strategic rivalry between India and China, especially after recent border clashes. Diverging national interests in conflicts such as the Russia-Ukraine war also lead to diplomatic rifts within the group.
Governance and Political Diversity: The BRICS bloc includes democracies like India and Brazil as well as authoritarian systems like China and Russia. This ideological diversity often leads to friction on key governance principles, limiting the group’s ability to take common stances on human rights, political crises, or international law.
Economic Asymmetry: China’s GDP is larger than that of all other BRICS members combined, creating a disproportionate influence over initiatives like the NDB. This imbalance sometimes results in smaller members feeling overshadowed or underrepresented.
Lack of Binding Mechanisms: Most BRICS agreements are based on consensus without any legal enforcement or follow-through mechanisms. As a result, many resolutions remain symbolic rather than actionable.
Slow Institutional Development: Unlike the EU or ASEAN, BRICS does not have a permanent secretariat, charter, or formal treaty framework, making coordination and implementation difficult.
Skepticism About Expansion: While expansion (like Indonesia’s entry in 2025) boosts visibility, rapid inclusion of new members could dilute shared interests and strategic focus, further complicating consensus-building.
BRICS operates within a broader constellation of multilateral groupings focused on the interests of the Global South and multipolar governance. Some notable related platforms include:
IBSA Dialogue Forum (India, Brazil, South Africa): Focused on South-South cooperation, development, and inclusive governance, especially within the UN framework.
BASIC (Brazil, South Africa, India, China): A climate-focused bloc within the UNFCCC negotiations representing major emerging economies in global climate diplomacy.
Shanghai Cooperation Organisation (SCO): Though security-oriented, it overlaps with BRICS in its emphasis on Eurasian cooperation and anti-Western alignment.
India’s ISA (International Solar Alliance): Though not a BRICS product, many BRICS countries are involved in India-led renewable energy diplomacy.
South-South Cooperation Platforms (UNESCAP, African Union, ASEAN partnerships): These often collaborate with or complement BRICS initiatives in finance, trade, and development.
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BRICS remains a vital multilateral platform balancing Western-centric global governance with equitable representation for developing nations. For India, it offers a stage to advocate for reform, foster technology cooperation, and deepen economic ties. With Indonesia joining in 2025, BRICS+ is poised for wider geopolitical relevance, especially for the Global South. From a UPSC perspective, mastering this topic enhances your current affairs understanding and global governance concepts, both critical for UPSC IAS exam preparation.
