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“BRIC” was an acronym for the four emerging countries that are expected to be the world’s major providers of manufactured products, services, and raw resources by the year 2050: Brazil, Russia, India and China. Both China and India are on track to overtake Brazil and Russia as the world’s leading suppliers of manufactured products and services, respectively. South Africa became a member of the BRICS group in 2010, and the acronym BRICS now refers to the entire organisation.

Geo-Politics and Global Economic Order Related to BRICS

  • South Africa became a member of the grouping in December 2010 and attended the third BRIC summit in Sanya (China) in 2011, after which the group was dubbed ‘BRICS’ (Brazil, Russia, India, China and South Africa)
  • The BRICS have stated their support for a multi-polar world, an alternative global financial system (as opposed to the IMF and the World Bank), and revamping the global trading system as a whole (WTO reforms)
  • On major regional and global concerns, the countries have established a conversation platform. The following are some of the areas where cooperation and conversation are possible
  • Finance and the Central Bank, Trade, Business Forums and Councils, Financial Forums, Academic and Think Tanks Councils, Health, Science and Technology, Terrorism, agriculture, and other security concerns, Youth and sports, disaster management, and statistics are just a few of the topics covered.

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Voice of Developing Nations

  • Together, the BRICS countries account for 42% of the global population, 33% of global GDP, and 17% of global commerce. As a vital pillar of world order, BRICS countries provide a significant contribution to global economic growth, trade, and capital investment
  • The escalating trade war between the United States and China, as well as the increased level of protection afforded wealthy countries like the United States, reflect the shifting global order
  • International cooperation on sustainable development and climate change mitigation is made possible by this forum, which brings together the world’s largest developing countries. So, yes, BRICS can be called as the voice of developing nations 

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India’s role in BRICS

  • India’s Role as a Growth Maker for Other BRICS Countries: India spent almost $4 billion in South Africa, and the Global Executive Development Program was established to equip the workforce
  • India’s Role in South Asian Trade: India has taken a number of encouraging steps to promote trade, including plans for a digital, open-access BRICS platform. It has established an independent BRICS credit rating agency to allow members to correlate their ranks with other developing countries rather than other members
  • India’s Role as a Big Brother: India is considered as a strong voice in the BRICS and the UN, speaking out against policies or actions that may harm the interests of any member. For example, India turned down China’s request to join the BRICS for Pakistan, Sri Lanka, and Mexico. India believed that focusing on developing existing members rather than accepting new members would suffocate the BRICS as a coalition and that it may follow the European Union’s path
  • India’s Peacekeeping Role: For trade to thrive, the BRICS must be peaceful, which is why peacekeeping in trade regions such as the Mediterranean, North Africa, and the Indian Ocean is critical. India has been assisting Tibetans in their fight for independence as well as the Rohingyas. India has dispatched over 1,000 troops to Nigeria, Somalia, Sudan, Ethiopia, and Afghanistan as part of UN missions to suppress internal unrest

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Importance of BRICS for India

  • India has been an active participant in this organisation from its inception. Maintaining economic growth that benefits India’s citizens in terms of job creation, GDP growth, and poverty alleviation are in the country’s national interest
  • This forum serves as an alternative global mechanism for promoting economic and social growth, particularly at a time when global institutions and order are under significant stress (US actions on the economic front, climate change, geopolitical uncertainties around the world)
  • India hopes to use this platform to strengthen ties with Africa and South America, continents that have been overlooked due to the “tyranny of distance” until recently
BRICS : Unacademy

New Development Bank (NDB)

Its headquarters are in Shanghai, China. It aspires to support global financial institutions in their attempts to achieve long-term sustainability. It also signals a break from the IMF and World Bank’s Western-dominated practises and procedures. Clean energy, public transportation infrastructure, irrigation, sustainable urban development, and balanced growth are some of the sectors and initiatives it supports.

BRICS Contingency reserve

This was established in 2014 following the BRICS summit in Fortaleza, Brazil. It went into operation in 2015 with the goal of assisting member countries and others in dealing with short-term liquidity crises and balance-of-payments deficiencies. A total of $100 billion has been contributed by the countries. China (41 %), Russia (18 %), Brazil (18 %), India (18 %), and South Africa (18 %) all make significant contributions (5).

India’s role in BRICS

  • India’s Role as a Growth Maker for Other BRICS Countries: India spent almost $4 billion in South Africa, and the Global Executive Development Program was established to equip the workforce.
  • India’s Role in South Asian Trade: India has taken a number of encouraging steps to promote trade, including plans for a digital, open-access BRICS platform. It has established an independent BRICS credit rating agency to allow members to correlate their ranks with other developing countries rather than other members.
  • India’s Role as a Big Brother: India is considered as a strong voice in the BRICS and the UN, speaking out against policies or actions that may harm the interests of any member. For example, India turned down China’s request to join the BRICS for Pakistan, Sri Lanka, and Mexico. India believed that focusing on developing existing members rather than accepting new members would suffocate the BRICS as a coalition and that it may follow the European Union’s path.
  • India’s Peacekeeping Role: For trade to thrive, the BRICS must be peaceful, which is why peacekeeping in trade regions such as the Mediterranean, North Africa, and the Indian Ocean is critical. India has been assisting Tibetans in their fight for independence as well as the Rohingyas. India has dispatched over 1,000 troops to Nigeria, Somalia, Sudan, Ethiopia, and Afghanistan as part of UN missions to suppress internal unrest.

Importance of BRICS for India 

  • India has been an active participant in this organisation from its inception. Maintaining economic growth that benefits India’s citizens in terms of job creation, GDP growth, and poverty alleviation are in the country’s national interest.
  • This forum serves as an alternative global mechanism for promoting economic and social growth, particularly at a time when global institutions and order are under significant stress (US actions on the economic front, climate change, geopolitical uncertainties around the world).
  • India hopes to use this platform to strengthen ties with Africa and South America, continents that have been overlooked due to the “tyranny of distance” until recently.

Challenges

  • Domestic and socioeconomic issues that must be addressed independently of party advocacy in order for the BRICS economies to achieve their main objectives as a group, such as inequalities (economic, social, and political), corruption, developments in health care and education, and human rights, to name a few, are shared by the BRICS economies.
  • The global supply chain is being impacted by the slowdown in China’s economy.
  • There is a recession in Russia, South Africa, and Brazil, as well as a downturn in the Indian economy.
  • While the recovery of the US economy is good for the global economy, it poses a challenge for the BRICS countries. As the US economy improves, investors may withdraw their funds from the BRICS countries and reinvest them in the US, where they can expect higher returns.
  • China’s hegemony is undeniable.
  • These countries have a variety of political structures.