India's Leadership of BRICS in 2026
As India takes on the leadership role of BRICS in 2026, it faces the challenge of navigating diverse geopolitical aspirations and perceptions. Emerging Market and Developing Countries (EMDCs) see BRICS as a platform for economic and diplomatic expansion, whereas developed nations, especially the US, often view it as countering Western influence.
BRICS Expansion and Influence
- Originally a group of rapidly growing large EMDCs, BRICS has expanded from 5 to 11 members, including 10 partner countries.
- The expanded group, now known as BRICS+, represents 7 members of the G20, major oil producers, and holds global aspirations.
- Post expansion, BRICS+ has seen:
- 3% increase in global GDP share.
- 5% rise in export share and internal trade.
- Growth in per-capita GDP and maintained current account surplus.
Economic Coordination and Institution Building
The 2014 Brazil summit marked a pivotal moment for BRICS, emphasizing deeper economic coordination through:
- New Development Bank (NDB) and Contingent Reserve Arrangement (CRA).
- Trade in local currencies, enhancing attractiveness to developing countries.
- NDB's popularity due to flexible local currency loans and absence of IMF-style conditions.
India's presidency may leverage new NDB funding opportunities and promote Central Bank Digital Currency (CBDC) usage.
Trade Agenda and Challenges
- Focus on policy coordination for trade and development, and reform of multilateralism.
- Challenges include reforming the WTO and integrating BRICS with regional arrangements.
- Efforts are underway to:
- Establish a BRICS group within WTO.
- Resolve intra-BRICS WTO disputes and enhance COP financing mechanisms.
- Use of AI tools to modernize trade policies.
Local Currency Trade and Financial Systems
- Local currency trade gained traction, with Russia reporting 90% intra-BRICS trade in local currencies.
- Western sanctions have accelerated the shift to local currencies and non-SWIFT settlements.
- BRICS Pay is emerging as a cross-border system for transactions in national currencies, leveraging encryption and advanced technology.
Strategic Direction and Global Engagement
BRICS is at a crucial point, balancing internal consolidation with expansion and Western engagement.
- BRICS needs to counter misconceptions of being anti-West or promoting de-dollarization.
- A consensus-driven approach within BRICS is essential, alongside collaborations with the West.
