12 Sep More Heft: BRICS and India’s Quest for a Greater Role in Global Governance

Subject

UPSC GS Paper II – International Relations

Why in the News?

India is hosting the BRICS Summit in New Delhi, bringing together major emerging economies and strengthening India’s diplomatic visibility on the global stage.

The summit is particularly significant because India is attempting to balance several objectives simultaneously: strengthening cooperation among developing countries, advocating reforms in global institutions, maintaining strategic autonomy, and managing relations with major Western powers.

The The Hindu analysis argues that BRICS has acquired considerable economic and political weight. The grouping now accounts for approximately half of the world’s population, two-fifths of the global economy and one-fourth of global trade.

Therefore, India’s BRICS presidency provides an opportunity to convert its growing diplomatic profile into greater influence over the rules of global governance.

What is BRICS?

BRICS is a grouping of major emerging economies that seeks greater cooperation among its members and a stronger voice for developing countries in international affairs.

The original grouping consisted of:

• Brazil
• Russia
• India
• China
• South Africa

Over time, the grouping has expanded, increasing its demographic, economic and geopolitical weight.

UPSC Prelims Point

Do not look at BRICS simply as an economic grouping.

Its agenda increasingly covers:

Economy + Development + Global Governance + Finance + Trade + Geopolitics

Why BRICS Matters to the Global South

A Platform Beyond Western-Dominated Institutions

The existing global institutional architecture was largely shaped after the Second World War.

Institutions such as:

• IMF
• World Bank
• UN Security Council
• WTO

face continuing demands for greater representation of developing and emerging economies.

Many countries of the Global South argue that their growing economic and demographic weight is not adequately reflected in global decision-making.

Consequently, BRICS provides an additional platform through which emerging economies can collectively push for a more representative international order.

BRICS as a Counterweight to the G7

The growing importance of BRICS has often led to comparisons with the G7.

However, BRICS should not automatically be understood as an anti-Western alliance.

Its members have different political systems, economic structures and foreign-policy priorities.

Moreover, India itself maintains strong relations with the United States, Europe, Japan and other Western partners.

Therefore, the more accurate interpretation is that BRICS acts as a counterweight to Western dominance, rather than necessarily being a formal anti-Western bloc.

The The Hindu notes that BRICS prefers not to describe itself as anti-Western, but its growing economic weight makes it an important counterweight to the G7 and Western-led approaches to global governance.

BRICS and Reform of Global Governance

One of India’s major objectives is to promote a more representative and multipolar international order.

India advocates greater representation in:

• UN Security Council
• International financial institutions
• Global economic decision-making
• Development finance
• Multilateral institutions

The basic argument is straightforward:

Global institutions should reflect contemporary economic and geopolitical realities rather than the power structure of the mid-20th century.

For India, this is closely connected with its aspiration to become a greater rule-maker rather than remaining merely a rule-taker.

India’s Strategic Advantage in BRICS

1. Greater Global Visibility

Hosting the summit allows India to bring major international issues to the centre of global diplomatic discussion.

2. Leadership of the Global South

India can position itself as a bridge between developing countries and developed economies.

3. Strategic Autonomy

BRICS gives India another diplomatic platform without requiring it to join a rigid alliance.

4. Economic Opportunities

Greater intra-BRICS trade and investment can create opportunities for Indian businesses.

5. Reform of Multilateral Institutions

India can use the platform to push for reforms in global governance.

BRICS Expansion: More Weight, More Complexity

Expansion has increased BRICS’s demographic, economic and geopolitical importance.

However, a larger grouping also creates a major challenge: internal diversity.

Members may disagree on:

• Relations with the United States
• Russia–Ukraine conflict
• West Asian conflicts
• Global financial architecture
• Trade policies
• Currency arrangements
• China’s role in the international system

Therefore, expansion gives BRICS more collective weight but does not automatically create greater strategic unity.

This distinction is important for UPSC answers.

Size does not necessarily translate into cohesion.

India’s Diplomatic Balancing

One of the most important dimensions of the BRICS Summit is India’s attempt to balance different strategic relationships.

India has strong partnerships with:

• United States
• European Union
• Japan
• Australia

At the same time, it remains deeply engaged with:

• Russia
• China
• Global South countries
• BRICS members

Consequently, India’s foreign policy increasingly reflects multi-alignment and strategic autonomy.

India’s approach can be understood as:

BRICS + Quad + G20 + SCO + Indo-Pacific partnerships

Rather than choosing one camp, India attempts to engage multiple platforms according to its national interests.

BRICS and India–US Relations

India’s growing role in BRICS does not necessarily mean a deterioration in India–US relations.

On the contrary, India seeks cooperation with Washington in areas such as:

• Technology
• Defence
• Indo-Pacific security
• Supply-chain resilience
• Critical and emerging technologies

At the same time, India does not want its foreign policy to become dependent on any single power.

The The Hindu analysis highlights this diplomatic dilemma: India’s attempt to restore ties with the Trump administration, particularly on trade and Indo-Pacific issues, exists alongside its leadership role within BRICS.

Therefore, BRICS can strengthen India’s bargaining space rather than necessarily undermine its Western partnerships.

Local-Currency Trade and De-dollarisation

Another important issue associated with BRICS is the promotion of local-currency trade.

The basic idea is to reduce transaction costs and excessive dependence on a single international currency by encouraging members to settle a greater share of trade using their own currencies.

Why is this relevant?

Greater local-currency settlement could:

• Reduce currency-conversion costs
• Increase financial autonomy
• Facilitate intra-BRICS trade
• Reduce exposure to external financial shocks

However, creating an alternative global currency system is much more difficult.

India has also maintained a cautious position regarding proposals for a common BRICS currency.

Therefore, UPSC answers should distinguish between:

Local-currency settlement ≠ Common BRICS currency ≠ Immediate end of dollar dominance

BRICS and Economic Cooperation

BRICS can also promote economic integration among emerging economies.

Potential areas include:

• Trade
• Investment
• Infrastructure
• Energy
• Technology
• Critical minerals
• Development finance
• Supply chains

The broader objective is to make emerging economies less vulnerable to disruptions in Western-dominated financial and supply-chain systems.

Nevertheless, intra-BRICS trade still faces regulatory, logistical and geopolitical barriers.

Hence, deeper economic integration will require market access, regulatory simplification and greater trust.

Major Challenges Before BRICS

1. Internal Differences

China, India, Russia, Brazil and other members have different strategic priorities.

2. China–India Rivalry

India and China cooperate within BRICS while simultaneously competing strategically.

This creates an inherent contradiction within the grouping.

3. Different Views on the West

Not all members favour confrontation with Western countries.

4. Economic Asymmetry

The economic capabilities of BRICS members vary significantly.

5. Limited Institutional Capacity

The grouping does not possess the same degree of institutional integration as some traditional international organisations.

6. Risk of Geopolitical Polarisation

If BRICS becomes perceived primarily as an anti-Western bloc, its ability to act as a broad Global South platform could weaken.

India’s Way Forward

1. Strengthen the Global South Agenda

India should focus on issues affecting developing countries such as:

• Food security
• Energy security
• Climate finance
• Debt sustainability
• Technology access
• Development finance

2. Promote Reform, Not Replacement

India should advocate reform of existing global institutions rather than simply attempting to replace them.

3. Preserve Strategic Autonomy

India should continue engaging simultaneously with BRICS, G20, Quad, EU, ASEAN and other platforms.

4. Increase Intra-BRICS Trade

Greater market access and regulatory harmonisation can make BRICS economically more meaningful.

5. Promote Local-Currency Mechanisms Carefully

India should support practical financial cooperation while avoiding premature attempts to create an entirely separate monetary system.

6. Prevent BRICS from Becoming a Rigid Bloc

Its effectiveness will depend on its ability to accommodate diverse national interests.

BRICS and India’s Global Ambitions

The larger significance of BRICS lies in India’s attempt to move from participation to agenda-setting.

India wants to be seen not merely as a large developing economy but as a country capable of contributing to the design of a new international order.

The grouping’s economic weight provides India with additional diplomatic leverage.

At the same time, India’s credibility will depend on whether it can successfully balance:

Global South leadership + strategic autonomy + relations with the West + engagement with China

That balancing act is at the heart of India’s BRICS strategy.

UPSC Mains Practice Question

“BRICS has evolved from an economic grouping into an important platform for the Global South and a potential counterweight to Western-dominated global governance. Discuss the opportunities and challenges for India in using BRICS to advance its global ambitions.”
(Answer in 250 words)