BRICS in the Era of Geopolitical Shifts

• 23 Dec 2025

For Prelims: BRICS, Amazon Rainforest, UN, IMF, Purchasing Power Parity, New Development Bank, Contingent Reserve Arrangement (CRA), WTO, UN Security Council, World Bank, SWIFT, Critical Minerals, African Union, ASEAN, Peacekeeping.      

For Mains: Key facts regarding BRICS and its relevance in contemporary times. Challenges associated with BRICS and a way forward to strengthen BRICS.  

Source: TH 

Why in News? 

Brazil handed over the BRICS presidency to India, passing a symbolic gavel made of recycled wood from the Amazon rainforest  symbolizing   sustainability. 

• Brazil stated that the relevance of BRICS has grown amid rising mistrust in multilateralism, reinforcing its role as a platform for dialogue and bridge-building. 

Summary 

• Brazil handed over the BRICS presidency to India amid rising mistrust in multilateralism. 
• BRICS, expanded to include nations like Egypt and the UAE, promotes multipolarity through institutions like the NDB and initiatives like the Grain Exchange.  
• While its role is growing amid global mistrust, internal divisions and economic asymmetry challenge its effectiveness, requiring stronger institutional and strategic coordination.

What is BRICS? 

• About: BRICS is a collaborative intergovernmental organization of major emerging economies, established to enhance economic cooperation and amplify the global political and economic influence of its members.  
  • The acronym originally stood for Brazil, Russia, India, and China, with South Africa joining later in 2010. 
• Key Purpose: Its core objectives include promoting trade and investment among members, reforming global governance institutions like the UN and IMF, and establishing alternative financial systems to reduce dollar dependency. 
  • It aims to counterbalance Western influence and advocate for a more multipolar world order. 
• Foundation and Evolution: The term BRIC was first coined by economist Jim O'Neill in 2001. The group began formal cooperation at the 2006 G-8 Outreach Summit and held its first official summit in Russia in 2009. 
• Expansion of Membership: The group expanded in 2024 with the addition of Egypt, Ethiopia, Iran, and the UAE. Indonesia joined in 2025.  
  • Saudi Arabia has accepted membership but has not yet formalized it, while Argentina opted out after initial consideration. 
  • In 2024, BRICS introduced a partner countries status, initially granted to Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Nigeria, Thailand, Uganda, and Uzbekistan. This allows them to attend summits without being full members. 
• Sherpa System: BRICS Sherpas are designated leaders who represent their countries within the BRICS bloc and serve as the primary channel of communication among BRICS nations.  
  • India’s current BRICS Sherpa is Sudhakar Dalela. 
• New Development Bank (NDB): NDB is a multilateral development bank established by BRICS countries in 2015 to mobilise resources for infrastructure and sustainable development projects in emerging markets and developing countries (EMDCs).  
  • Membership is open to United Nations members, with Bangladesh (2021), United Arab Emirates (2021), Egypt (2023), and Algeria (2025) joining as new members.  
  • The NDB has an initial authorised capital of USD 100 billion. The five BRICS founding members each hold equal voting shares, with 20% of the capital each at establishment, and they are guaranteed to retain at least 55% of the institution’s voting rights, even as new members join. 
• Significance: BRICS represents about 45% of the world's population and accounts for 37.3% of global GDP (in purchasing power parity terms), collectively surpassing the economic share of the G7 (29.3%).  
• Key Initiatives: Key initiatives are the New Development Bank (NDB, 2014), the Contingent Reserve Arrangement (CRA), the BRICS Grain Exchange, and the Science, Technology and Innovation (STI) Framework Programme (2015). 

How has BRICS Increased its Relevance in an Era of Growing Mistrust Toward Multilateral Institutions? 

• Pragmatic Response to Multilateral Paralysis: Amid deadlocks in the WTO and UN Security Council, BRICS has enhanced relevance through functional cooperation in food security (BRICS Grain Exchange), digital governance (BRICS Rapid Information Security Channel), technology sharing (STI Framework), vaccine equity during Covid-19, and climate finance via the NDB. 
• Rising Representativeness: With Indonesia’s accession and the BRICS partner-country model, the grouping has widened its Global South footprint, countering critiques of limited regional representation while preserving institutional flexibility. 
• Material Economic and Energy Weight: Accounting for ~45% of the global population and over 35% of world GDP (PPP), and reinforced by energy-heavy members (Iran, UAE, with Saudi Arabia pending), BRICS wields growing influence over global growth narratives, energy markets, and pricing politics. 
• Institutional Alternatives to Western-Led Frameworks: The New Development Bank and the CRA provide development, climate, and liquidity support outside IMF-centric conditionality, helping BRICS evolve from a consultative forum into a credible solutions-oriented institutional platform. 
• Multipolar Narrative and Diplomatic Adaptability: By positioning itself as a champion of a fairer multipolar order—while sustaining dialogue during crises such as Covid-19 and the Ukraine War—BRICS resonates with Global South states seeking strategic autonomy and non-aligned diplomatic space amid geopolitical polarization. 

What are the Key Challenges Hindering the Effective Functioning of BRICS? 

Challenge Area	Description
Geopolitical & Strategic Divergence	Members have conflicting strategic interests (e.g., India–China border disputes, India–US ties vs. Russia–China alignment), complicating consensus on security, trade, and global governance reforms.  China, India, and Russia project overlapping but partially conflicting visions of Global South leadership, causing subtle rivalry over BRICS agendas, representation, and direction.  BRICS lacks consensus on democracy, human rights, and governance, limiting its alternative to Western institutions.
External Coercion & Political Pressure	BRICS faces explicit external pressure, particularly from the US, over de-dollarization efforts. Statements warning of punitive consequences, tariffs, and criticism of members’ alignments illustrate how participation attracts geopolitical coercion, forcing trade-offs with Western relations.  De-dollarization narratives are strong, but practical alternatives (common payment systems, reserve currencies) remain fragmented, and insufficiently trusted by markets.
Economic Asymmetry	China accounts for ~70% of BRICS GDP, creating imbalances in influence, decision-making, and resource contribution, leading to perceptions of dominance rather than equality.
Institutional Underdevelopment	Key institutions like the NDB and CRA remain limited in scale and operational capacity compared to the IMF and World Bank.
Expansion–Cohesion Trade-off	Post-2024 expansion (Egypt, Ethiopia, Iran, UAE, Indonesia) risks diluting focus, creating sub-blocs, and slowing decision-making due to diverse priorities.  BRICS lacks a collective security, limiting its credibility on hard-security issues and crisis management.

What Steps can BRICS Take to Strengthen its Effectiveness and Strategic Influence? 

• Institutional and Financial Deepening: BRICS should operationalize a unified digital payment platform (e.g., BRICS Pay), expand local-currency lending via the NDB, and create dedicated funds for green energy and strategic sectors to reduce reliance on SWIFT, the US dollar, and IMF-centric financial channels. 
• Trade Integration and Supply-Chain Stabilization: A BRICS Common Market Framework—anchored in tariff rationalization, mutual standards recognition, and seamless logistics—alongside the operationalization of the BRICS Grain Exchange, would stabilize food supplies and strengthen trade in critical sectors such as pharmaceuticals and minerals. 
• Coordinated Diplomacy and Global South Alignment: Formalizing a unified BRICS voice on global governance reforms and creating a crisis-diplomacy mechanism for regional conflicts (e.g., Sudan, Haiti), while institutionalizing BRICS+ dialogue with blocs like the African Union, and ASEAN, would amplify South–South cooperation and diplomatic influence. 
• Permanent Institutional Architecture for Policy Delivery: Establishing a lean, technocrat-led BRICS Secretariat would ensure policy continuity across rotating presidencies, monitor implementation, and convert summit declarations into measurable outcomes, addressing the grouping’s execution deficit. 
• Strategic Autonomy Through Protection and Value-Chain Power: Collective legal and financial shield mechanisms (e.g., joint asset-protection funds), combined with coordinated investment in value-chain segments such as refining, processing, logistics, and standards-setting, would enhance sanctions resilience and elevate BRICS from trade coordination to structural economic power. 

Conclusion 

BRICS has grown into a pivotal platform advocating for multipolarity, leveraging economic heft and institutional innovation. Its future relevance hinges on overcoming internal disparities and external pressures to deliver tangible cooperation for the Global South. 

Drishti Mains Question:

Critically examine the role of BRICS as a counterweight to traditional Western-dominated multilateral institutions. What are its key achievements and limitations?

Frequently Asked Questions (FAQs) 

1. What is BRICS? 
BRICS is a cooperative intergovernmental organization of emerging economies—Brazil, Russia, India, China, South Africa—aimed at enhancing economic cooperation and global influence. 

2. Which countries joined BRICS in 2024–2025? 
Egypt, Ethiopia, Iran, UAE, and Indonesia joined BRICS, expanding the bloc’s outreach under BRICS+; Saudi Arabia’s membership is pending. 

3. What are the key financial institutions of BRICS? 
The New Development Bank (NDB) and Contingent Reserve Arrangement (CRA) provide alternatives to the IMF/World Bank, promoting local currency trade and financial autonomy. 

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)

Q. With reference to a grouping of countries known as BRICS, consider the following statements: (2014)

1. The First Summit of BRICS was held in Rio de Janeiro in 2009. 
2. South Africa was the last to join the BRICS grouping. 

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)

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Mains 

Q. India has recently signed to become a founding member of New Development Bank (NDB) and also the Asian Infrastructure Bank (AIIB). How will the role of the two Banks be different? Discuss the strategic significance of these two Banks for India. (2014)