BRICS and India
Context:
- Six new members of the BRICS alliance were just inducted in South Africa in 2023.
- Following the 15th BRICS conference in Johannesburg in 2023, BRICS was expanded to become BRICS-Plus. Six new nations—Argentina, Egypt, Ethiopia, Saudi Arabia, Iran, and the United Arab Emirates—have joined the club.
Additional results from the 15th BRICS Summit:
- Adoption of the Johannesburg II Declaration on issues pertaining to politics and the global economy.
- The BRICS Women’s Business Alliance members’ first-ever in-person meeting with BRICS leaders.
- The subject of local currencies, payment methods, platforms, etc. will be discussed by the central bank governors or finance ministers of the BRICS nations.
BRICS Growth:
- Despite the widespread opinion that this summit was ineffective, it is important to consider how BRICS has developed rather than just the outcomes of a single gathering.
Economic importance:
- First and foremost, it’s critical to remember that BRICS was born out of economic necessity. It does not engage in international police, supply peacekeepers, or offer military or security assistance to other nations.
- By 2050, the population of the BRICS countries will account for 47% of the global population, with their GDP currently representing 36% of the global GDP. It is crucial to consider the long-term prospects that this group offers as a result.
- With the possibility of adding more members, the G7—which consists of the United States, Canada, France, Germany, Italy, Japan, and the United Kingdom—may face significant competition from BRICS.
Significance of demographics:
- Second, China and India, two BRICS members, together account for one-third of the global population. By 2030, the two nations with the fastest-growing economies are predicted to rank in the top three globally.
- Both nations are aware that as economic blocs like the European Union and ASEAN have grown, trade and investment have accelerated, and as a result, bilateral ties have changed on a global scale.
- Even though China and India have had bilateral difficulties in politics and diplomacy since their Doklam conflict in 2017, trade between the two nations has increased dramatically.
Look for a substitute:
- Thirdly, there has been some division in the United States and other international regions. The U.S. is eager to slap tariffs and erect other barriers to limit China’s expansion in trade and investment, which has angered many other nations. The United States would prefer to curb China’s advancements in several areas, such as electric mobility and communication infrastructure.
- It’s expected that this will worsen. As a result, nations desire to be a part of an alliance that includes China. China is not a major member in the BRICS alliance; instead, democratic nations like Brazil, South Africa, and India serve as a counterbalance.
Trade, investment, and refugee issues:
- In a similar vein, the way refugees are handled in Europe does not present a favourable image of a globalising globe. Nations like the United States have disregarded World Trade Organisation (WTO) regulations without facing consequences. Countries will therefore need to search for alternative agreements.
- As BRICS expands, a plethora of trade, commercial, and investment protocols will be developed, such to those found in various free trade agreements or economic blocs.
De-dollarization and global currencies:
- Fourth, for the whole period, the US dollar has dominated the world economy. With digital platforms being more widely used worldwide, it is obvious that digital currency is the way of the future. China and India have both advanced significantly in this area; they are well ahead of the United States and Europe. Together, through BRICS, India and China may promote their own currencies as alternatives to the dollar. Both countries are striving for increased trade, investment, and commerce in their respective currencies. One of the main factors causing China’s and India’s interests to coincide is their freedom from the US dollar.
Way Forward:
- African nations are still debating how much autonomy they should have when selecting trading or investment partners. During the G20 meeting in New Delhi, India suggested that Africa become a full member of the Union. It is attempting to expand its influence throughout Africa. Until the next summit, BRICS will once more remain out of the headlines. All summits, though, produce a spark that serves as the foundation for future networks of individuals. This is a group that will endure.
