DIRECT ANSWER: India’s BRICS Chairmanship is crucial for leveraging South-South cooperation, especially regarding the Global South's voice in global governance. Amidst increasing US-China tensions and the challenge of integrating new members (BRICS+), India aims to institutionalize cooperation, advance economic integration (through the NDB), and prioritize actionable outcomes reflecting Indian interests, thus reshaping the Geopolitics of Multilateralism.
Why in News?
Brazil passed the BRICS Chairmanship gavel to India recently, marking the start of India’s tenure. This transition occurs at a pivotal moment, characterized by the bloc’s expansion (BRICS+) following the inclusion of new members (such as Saudi Arabia, UAE, Iran, and Egypt) and heightened global economic fragmentation and geopolitical conflicts (like the Russia-Ukraine War and Middle East tensions).
What is the Concept / Issue?
The core issue revolves around the strategic direction of BRICS under India's leadership, specifically how the grouping manages the geopolitical pressures of balancing competing global powers (US vs. China/Russia) while fulfilling its mandate to create a more equitable, multipolar global order. BRICS, as a non-Western multilateral platform, must institutionalize its internal mechanisms and leverage the New Development Bank (NDB) to project the collective strength of the Global South, often challenging the established economic norms set by Western institutions.
Why is this Issue Important?
- Strategic: India can shape the BRICS agenda, emphasizing crucial issues like counter-terrorism, digital public infrastructure (DPI), and supply chain resilience, ensuring the bloc’s priorities align strategically with India’s long-term interests and its policy of strategic autonomy.
- Economic: The chairmanship allows India to push for strengthening the New Development Bank (NDB), promoting trade settlement in local currencies to mitigate US Dollar dominance, and mitigating the risks associated with unilateral Western sanctions.
- Geopolitical/Social: India is positioned to enhance the collective bargaining power of the Global South on critical global reforms, including the restructuring of the UN Security Council, addressing climate financing disparities, and reforming the WTO, thereby projecting India as a leading voice for developing nations.
Key Sectors / Dimensions Involved
- Dimension 1: Institutional Reform and BRICS+ Expansion: Managing the diverse political and economic interests of the expanded BRICS membership (currently 10 nations) to maintain consensus, ensuring decision-making processes remain efficient and the group's agenda is coherent.
- Dimension 2: Economic and Financial Cooperation: Focusing on concrete deliverables through the New Development Bank (NDB), operationalizing the Contingent Reserve Arrangement (CRA) to offer financial safety nets, and increasing intra-BRICS investment flows.
- Dimension 3: Digital and Technological Governance: Establishing cooperation frameworks on Artificial Intelligence (AI) ethics, cross-border digital payments (leveraging India's UPI model), and fostering technology transfer among member states to bridge the digital divide.
What are the Challenges?
- Sino-Indian Strategic Rift: The deep bilateral trust deficit arising from border disputes (LAC) and geopolitical competition complicates consensus building, as China often seeks to dominate the economic narrative within the grouping.
- Operationalizing BRICS+: Integrating new members successfully without diluting the group's core focus, and ensuring that the diverse geopolitical alliances of the new members do not lead to internal paralysis or conflicting strategic goals.
- Balancing Global Powers: Managing the pressure from Western partners (US/EU) regarding India’s association with Russia and China, while simultaneously ensuring that the BRICS platform remains open and non-aligned concerning major global conflicts.
UPSC Relevance
Prelims Focus:
- BRICS structure, founding declaration, and recent expansion (BRICS+ members).
- New Development Bank (NDB): Headquarters, purpose, lending mandate, and voting structure.
- Contingent Reserve Arrangement (CRA) vs. IMF.
Mains Angle:
GS Paper II – International Relations (Bilateral, regional and global groupings and agreements involving India; Effect of policies and politics of developed and developing countries on India’s interests)
How UPSC May Ask This Topic:
Critically examine the challenges and opportunities for India as it assumes the BRICS Chairmanship in a multipolar world. How effectively can BRICS enhance the collective voice of the Global South amidst increasing geopolitical fragmentation? (250 words)
What is the Way Forward?
- Prioritize Institutional Efficiency: India must push for clear rules of engagement and efficient decision-making mechanisms within BRICS+ to prevent the expanded group from becoming unwieldy, focusing on measurable, results-oriented agendas.
- Leverage India's Digital Leadership: Utilize India’s success in digital public infrastructure (DPI) and sustainable technology as a model for BRICS cooperation, offering practical solutions for South-South development without Western dependency.
- Strategic De-hyphenation: Adopt a pragmatic approach that separates contentious geopolitical issues (e.g., border disputes) from the core economic and development cooperation agenda, ensuring continuous momentum and credibility for the NDB and other joint initiatives.