17th BRICS Summit

• 08 Jul 2025

For Prelims: BRICS, IMF, World Bank, Emerging Markets and Developing Countries’ (EMDCs), WTO, Carbon Market, Two-state Solution, New Development Bank, UN Security Council, G7, G20, NAM, G77, Credit Rating Agency, SWIFT Systems, Free Trade Agreement (FTA).                          

For Mains: Role and relevance of BRICS in current global order, Associated challenges and way forward. 

Source: TH  

Why in News? 

India’s Prime Minister took part in the 17^th BRICS Summit held in Rio de Janeiro, Brazil, under the theme "Strengthening Global South Cooperation for More Inclusive and Sustainable Governance," and signed the Rio de Janeiro Declaration. 

• Indonesia officially joined BRICS, while Belarus, Bolivia, Kazakhstan, Cuba, Nigeria, Malaysia, Thailand, Vietnam, Uganda, and Uzbekistan were welcomed as BRICS partner countries. 
• India will assume the BRICS Chairship and host the 18^th BRICS Summit in 2026. 

What are the Key Outcomes of the 17^th BRICS Summit? 

• Global Governance Reform: BRICS backed expansion of the UN Security Council to include more permanent members from Asia, Africa, and Latin America for greater Global South representation, urged IMF and World Bank reforms to reflect Emerging Markets and Developing Countries’ (EMDCs) role, and supported a rules-based WTO. 
• Sustainable Development: BRICS adopted the Leaders’ Framework Declaration on Climate Finance to mobilize resources for developing countries and endorsed an MoU on the BRICS Carbon Markets Partnership to enhance cooperation in carbon pricing and emissions trading. 
• Peace and Security: BRICS reaffirmed “African Solutions to African Problems”, called for a Gaza ceasefire and two-state solution. BRICS leaders condemned the Pahalgam attack, and India stressed that terrorism must be rejected on principle, not treated as a matter of convenience. 
• Financial Cooperation: BRICS advanced talks on a Cross-Border Payments Initiative to reduce US dollar reliance, supported the New Development Bank’s expansion, and the BRICS Multilateral Guarantees (BMG) pilot to de-risk investments. 
• Technology and Digital Economy: BRICS adopted the Leaders’ Statement on Global AI Governance, concluded the Data Economy Governance Understanding and agreed to form a BRICS Space Council for collaborative space exploration. 
• Health and Social Development: BRICS launched the Partnership for the Elimination of Socially Determined Diseases (Tuberculosis) to tackle health disparities. 

What is BRICS? 

• About: The acronym ‘BRIC’ was coined by British economist Jim O'Neill in 2001 to represent the emerging economies of Brazil, Russia, India, and China. 
  • BRIC began functioning as a formal group during the G-8 Outreach Summit in 2006, held its first summit in Russia in 2009, and became BRICS with the inclusion of South Africa in 2010. 
• Members: The initial five BRICS members were Brazil, Russia, India, China, and South Africa. In 2024, Iran, the United Arab Emirates (UAE), Egypt, and Ethiopia joined the group while Indonesia joined in 2025. 
  • Saudi Arabia has not yet formalised its BRICS membership, while Argentina, initially expected to join in 2024, later opted out.  

• Significance: BRICS accounts for 45% of the world’s population and 37.3% of global GDP, surpassing the EU’s 14.5% and the G7’s 29.3%. 
• Key Initiatives of BRICS: New Development Bank (2014), Contingent Reserve Arrangement (CRA), BRICS Grain Exchange, BRICS Rapid Information Security Channel, STI Framework Programme (2015) etc.  

How is BRICS Redefining Power Dynamics in Global Governance? 

• Energy Security: With Iran, Saudi Arabia, and the UAE joining, BRICS now accounts for around 44% of global crude oil production positioning it as a key player in ensuring energy security and influencing oil prices and supply chains. 
• Neutral Space for Strategic Dialogue: In times of bilateral tensions, such as the India-China Doklam standoff, BRICS offers a neutral, non-Western diplomatic platform for dialogue encouraging constructive engagement. 
• Instrument for Multilateral Reform: BRICS provides India and others a collective forum to push for reforms in global institutions like the UN Security Council, WTO, IMF, and World Bank to reflect current global realities. 
• Inclusivity and Global Engagement: The inclusion of new countries, many of which are WTO members (except Ethiopia and Iran), shows the group's effort to expand its global footprint and engage a broader coalition of non-Western nations. 
• Emerging Political and Economic Bloc: BRICS is increasingly seen as a counterbalance to the G7 and a rising force in the G20, addressing economic and political issues like inequality and underrepresentation amid declining Western influence.  

What are the Key Challenges Hindering BRICS Functioning in the Current Global Order? 

• Lack of Permanent Seat and Secretariat: BRICS does not have a permanent seat or a dedicated secretariat, which weakens its institutional framework. The absence of a permanent structure makes decision-making processes slower and less streamlined. 
• Geopolitical Contradictions: BRICS operates on a consensus basis, but its expansion complicates decision-making due to contradictions like UAE and Egypt's US alliances and Iran's adversarial stance, risking potential ineffectiveness akin to the NAM and G77.  
• Weakening BRICS Economies & Untapped Potential: China’s economic slowdown (growth dropped from 5.2% in 2023 to 4.6% in 2024, with projections falling to 3.4% by 2028), coupled with Russia’s decline amid war and sanctions, undermines BRICS’ capacity to drive global economic transformation.  
  • Additionally, despite accounting for more than 18% of global trade, intra-BRICS trade remains low at just 2.2% (2022). The proposed BRICS Credit Rating Agency (CrRA) failed to materialize due to lack of consensus, highlighting institutional inertia within the bloc. 
• Limited Influence on Global Institutions: BRICS+ countries hold only 19% voting power in the IBRD, compared to 40% by the G7, limiting BRICS+ influence on global financial policy. 
  • The New Development Bank (NDB) lacks sufficient funds to match the World Bank, IMF, or AIIB. 
• Slow Dedollarization: While Iran, Russia, and China trade in their own currencies, de dollarisation efforts remain inconsistent, and a common BRICS+ currency appears unlikely after recent expansion. 

How Can BRICS Enhance Its Institutional Capacity and Leadership Role? 

• Institutional Reforms: Establish a permanent BRICS secretariat, expand decision-making with weighted voting on economic matters while keeping consensus for political issues, and formalize new member integration with clear criteria like GDP, and economic stability to maintain strategic focus, and global credibility. 
• Financial Integration: Promote alternative SWIFT systems, launch a BRICS+ Development Bank 2.0 to expand NDB lending, and establish a BRICS+ Free Trade Agreement (FTA) to reduce trade barriers among members. 
• Geopolitical Cooperation: Adopt a unified stance on global governance e.g., UNSC reforms, WTO restructuring, strengthen BRICS+ security dialogue on counter-terrorism, and promote conflict resolution through a neutral platform. 
• Innovation Partnerships: Form a BRICS+ Digital Alliance for joint R&D in AI, semiconductors, and green tech to reduce Western dependency, and enhance collaboration in space and nuclear energy by pooling resources. 
• Soft Power & Cultural Exchange: Establish a BRICS+ University Network for student exchanges, and promote tourism through visa-free blocs to strengthen people-to-people ties. 

Conclusion 

BRICS, with institutional reforms, financial integration, and strategic unity, can emerge as a powerful bloc for Global South representation. By addressing internal contradictions and boosting intra-group cooperation, it can challenge Western-dominated systems while fostering inclusive growth. India’s 2026 chairmanship presents a crucial opportunity to shape this vision. 

Drishti Mains Question:

Critically examine the role of BRICS in promoting Global South cooperation and reforming global governance structures.

UPSC Civil Services Examination, Previous Year Questions (PYQs) 

Prelims

Q. Consider the following statements: (2016)

1. New Development Bank has been set up by APEC.  
2. The headquarters of the New Development Bank is in Shanghai.  

Which of the statements given above is/are correct?

(a) 1 only  

(b) 2 only  

(c) Both 1 and 2  

(d) Neither 1 nor 2  

Ans: (b) 

Q. The ‘Fortaleza Declaration’, recently in the news, is related to the affairs of (2015)

(a) ASEAN  

(b) BRICS  

(c) OECD  

(d) WTO  

Ans: (b)