THE CONTEXT: The BRICS Summit 2024, held from October 22 to 24 in Kazan, Russia, focused on “Strengthening Multilateralism for Just Global Development and Security.” The agenda emphasized enhancing economic cooperation, promoting security and geopolitical stability, and expanding the BRICS membership to include new countries from the Global South.
THE AGENDA:
- Economic Cooperation: Boosting intra-BRICS trade and reducing reliance on Western-dominated financial systems. Implementing the Strategy for BRICS Economic Partnership 2025. Developing alternative payment systems like BRICS Pay, including BRICS Pay QR for retail, BRICS Pay B2B for businesses, and BRICS Clear for cross-border transactions.
- Geopolitical and Security Issues: Addressing global security challenges and countering terrorism. Discussing regional conflicts and promoting a multipolar world order.
- Technological Cooperation: Enhancing collaboration in information security and artificial intelligence. Promoting innovation and digital transformation.
- Sustainable Development: Balancing economic interests with climate goals and Discussing energy transition concepts.
- Health Cooperation: Establishing a BRICS Medical Association and Creating an early warning system for infectious diseases.
THE OUTCOME:
- Expansion and Influence: The summit marked the first gathering since the bloc’s expansion, with Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates joining Brazil, Russia, India, China, and South Africa. This expansion increased BRICS’ collective contribution to 44% of global crude oil production. The enlarged group now represents approximately 45% of the world’s population and 28% of global GDP.
- Geopolitical Positioning: Russia used the summit to showcase its international partnerships despite Western sanctions. The group emphasized creating a multipolar world order.
- Diplomatic Engagements: Bilateral meetings between leaders, including discussions between Indian Prime Minister Modi and Russian President Putin.
- Future Expansion: Discussions on potential further expansion, with countries like Turkey showing interest in joining.
- Global South Representation: BRICS positioned itself as a voice for the Global South, advocating for greater representation in international institutions.
- Health and vaccine: Support for India’s initiatives like the BRICS R&D Vaccine Center and digital public goods.
SIGNIFICANCE OF BRICS FOR INDIA:
- Financial Cooperation: The New Development Bank (NDB) has funded nearly $32 billion in infrastructure projects. India benefits from the BRICS Contingent Reserve Arrangement (CRA), which provides protection against financial shocks.
- Trade and Commerce: India’s trade with BRICS partners has grown significantly, increasing from 8% in 2002 to over 14% in 2018. Access to diverse industries and increased trading activities have benefited India’s ICT, Agriculture, and pharmaceutical sectors.
- Geopolitical Positioning: BRICS provides India a platform to balance its strategic interests between the U.S. and the Russia-China axis. India can use BRICS to actively engage with China and resolve mutual disputes. The forum helps India maintain diplomatic relations with both Western and Eastern powers.
- Energy Security: Access to major oil-producing nations like Russia and new members Saudi Arabia and UAE strengthens India’s energy security. The expanded BRICS now controls 44% of global crude oil production.
THE CHALLENGES AND LIMITATIONS:
- Economic Diversity: The diverse economic structures of BRICS members make it difficult to implement unified financial strategies.
- Geopolitical Tensions: Ongoing conflicts, such as the Russia-Ukraine war, create complexities in BRICS cooperation.
- Implementation Hurdles: While many initiatives were discussed, concrete implementation plans for several proposals remained unclear.
- Trade Imbalances: India maintains a negative trade balance with most BRICS members except Brazil. The Indian economy shows lower competitiveness compared to other BRICS economies.
THE WAY FORWARD:
- Intra-BRICS Trade: Enhance trade relations among member countries by reducing barriers and promoting investments, especially in sectors like technology, infrastructure, and energy.
- Voice of the Global South: Amplify the concerns and interests of developing nations to ensure equitable development. Advocate for reforms in global institutions like the IMF and World Bank to increase the representation of emerging economies.
- Conflict Resolution: Strive for peaceful resolutions to regional conflicts through diplomatic channels within the BRICS framework.
- Climate Initiatives: Encourage member countries to join global environmental initiatives led by India, such as the International Solar Alliance.
THE CONCLUSION:
The BRICS Summit 2024 demonstrated the bloc’s potential to reshape global governance structures by fostering collaboration among emerging economies. BRICS strives to implement its strategic vision while addressing internal challenges and external geopolitical dynamics.
UPSC PAST YEAR QUESTION:
Q.1 ‘China is using its economic relations and positive trade surplus as tools to develop potential military power status in Asia’, In the light of this statement, discuss its impact on India as her neighbor. 2017
Q.2 India has recently signed to become founding a New Development Bank (NDB) and the Asian Infrastructure Investment Bank (AIIB). How will the role of the two Banks be different? Discuss the significance of these two Banks for India. 2014
MAINS PRACTICE QUESTION:
Q.1 How can India leverage its role within BRICS to address global challenges and enhance its international standing?
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