On September 12, 2024, Vivekananda International Foundation (VIF) hosted a talk, delivered by Shri Dammu Ravi, Secretary (Economic Relations), Ministry of External Affairs, at VIF on the topic of ‘Issues before the 16th BRICS Summit’. The talk was attended by eminent diplomats, experts and scholars in hybrid mode. Discussions during the talk pertained to India’s approach in the dynamic multilateral forum of BRICS.
Key points discussed;
- The 16th BRICS Summit is going to be held under Russia’s chair in Kazan, Russia from October 22–24, 2024. The summit would be distinctive as, this would be the first summit with inclusion of five new members, namely, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates (UAE), since the inception of BRICS.
- At present, 27 countries and five international organisations have been invited to the summit. The main intent is to evolve and enhance the significance of BRICS by increasing the participation of strong emerging economies. Further, there are 34 countries who have expressed interest in joining the BRICS forum.
- The accession of new members has magnified the significance of BRICS. Currently, BRICS holds 35 percent of the world GDP, 40 percent of world trade, 44 percent of oil and gas reserves, 26 percent of world land mass and 25 percent of Foreign Direct Investments (FDIs).
- During the 15th BRICS Summit, expansion of BRICS into BRICS+ took place.
- At the Kazan Summit Russian has proposed an expansion under the ‘partner-country group’ category.
- There is a proposal to develop a BRICS common currency. It is driven by the concern that overdependence on dollar has led to high indebtedness among the global south. There is concern that China will use BRICS to enhance its influence.
- With various countries from different regions joining BRICS, there is a change in character of the forum. The new members have brought in the agenda which is influenced by their own understanding of geopolitics and geoeconomics.
Key Assessments
- It would be difficult for any country to resist further expansion of BRICS, as the momentum for expansion is building up.
- India should make use of the expansion BRICS by forming effective issue-based coalitions within the forum. Most of the new BRICS member states aspire for a voice in the multilateral fora. By forming issue-based coalitions India will balance the ‘anti-west’ sentiments within the group.
- India may offer a portfolio of deliverables to BRICS partner countries. They may include digital public infrastructure, Higher education, health infrastructure traditional medicine, etc.
- India may consider the BRICS proposal for a common currency as an alternative to the US dollar, the international reserve currency and foremost currency used for international transactions. These discussions on BRICS common currency are in the early stage and the Reserve Bank of India (RBI), should study this matter carefully. While India should engage in these discussions, Reserve Bank of India (RBI) and Ministry of Finance should study the proposal carefully.
- India should offer to host the BRICS secretariat, as it would provide the country with a pivotal role in the evolving BRICS architecture. It would balance the prominence of China, which currently hosts the NDB.
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