BRICS Expansion

BRICS Expansion

The year 2025 begins with BRICS (Brazil, Russia, India, China, and South Africa) experiencing significant growth, as it fully welcomed four new members in 2024.

New BRICS Member Countries

BRICS Expansion

  • Original Members: Brazil, Russia, India, China, South Africa.
  • New Members: Egypt, Ethiopia, Iran, UAE, and Indonesia.
  • Indonesia became the first Southeast Asian member in 2025.
  • Saudi Arabia  has put its membership on hold.
  • Argentina declined the invitation it had previously accepted.
  • Several regional powers have expressed interest in joining the group, including Türkiye, Vietnam, Thailand, and Malaysia.

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Evolution of BRICS+

  • Origins: BRIC (2001): The concept of BRICS dates back to 2001, when economist Jim O’Neill coined the term “BRIC” to identify the four emerging economies—Brazil, Russia, India, and China.
    • The idea was primarily focused on economic cooperation, recognizing the rising influence of these nations in the global market. 
  • Establishment: The grouping was formalised at the 2006 BRIC Foreign Ministers’ meeting.
    • The first BRIC Summit took place in 2009 in Russia and focused on issues such as reform of the global financial architecture.
  • First Expansion to BRICS (2010): In 2010, South Africa was invited to join the group, officially transforming BRIC into BRICS.
  • New Development Bank (NDB): Established in 2014, the NDB aimed to finance infrastructure and sustainable development projects in emerging economies.
  • Contingent Reserve Arrangement (CRA): Established in 2015, the CRA was designed to provide emergency liquidity to BRICS countries in times of economic instability.
  • Expansion and Diversification (2024 Onwards): In 2024, BRICS took a significant step forward by expanding its membership to include Egypt, Ethiopia, Iran, and the United Arab Emirates (UAE).
  • Key Principles: Operates on non-interference, equality, and mutual benefit.

Significance of BRICS+ in the Global Order

  • A Voice for the Global South: BRICS+ aspires to position itself as a counterweight to the G7, representing the interests of the Global South.
    • BRICS+ offers an alternative vision, with a focus on inclusive development and multipolarity.
  • Rising Global Influence: The successful Kazan meeting in Russia (attended by 36 heads of state and UN Secretary-General António Guterres) highlighted BRICS+ resilience and impact.
  • BRICS+ already represents 47% of the world’s population and 41% of global GDP.
    • If Türkiye and most ASEAN (Association of Southeast Asian Nations) members—join, the group would comfortably surpass the 50% threshold in both indicators.
  • It also includes two of the world’s biggest oil producers, the UAE and Iran while Saudi Arabia’s membership is also pending.

Reasons of the Expansion of BRICS

  • Strategic global influence: The primary reason is to create counter balance to western dominance in the institutions working on an international level. 
    • It has the potential to become a new power center for the Global South, positioning itself as a counterbalance to the G7.
  • Economic strength: The expansion of brics will strengthen its economic potential. For it, it includes countries with high economic potential like China and India.
    • This institution promotes trade and investment opportunities among its member countries.
  • Energy security: Apart from trade and investment, its decision to include countries like  Iran and Saudi Arabia (Pending) is backed by accessing energy reserves. 
    • It will help BRICS to reduce its reliance on traditional energy markets, increasing security within the group. 
  • Geopolitical significance: Inclusion of countries like Egypt and Ethiopia helps in accessing maritime trade routes.
    • It promotes cooperation and stability in the economies of the member countries. 

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Impact of BRICS+ Expansion on Global Institutions

  • Pressure on International Organizations to Reform: It will increase the pressure on international organizations like the UN, the World Bank, and the IMF to reform and offer adequate representation for developing and emerging economies.
  • EU and Balkan Enlargement: The European Union may also feel the pressure as some Western Balkans countries, tired of waiting for EU membership, could consider aligning with BRICS+ instead.

Key Achievements of BRICS

  • Stances on Global Issues
    BRICS has demonstrated unified positions on:

    • Climate Change Commitments: Advocating for equitable responsibilities and financial support for developing nations.
    • UN Reforms: Pushing for greater representation of emerging economies.
    • Opposition to Unilateral Sanctions: Condemning sanctions imposed by Western countries on nations like Iran, Russia, and Venezuela.
  • Institutional Frameworks and Financial Tools
    BRICS has developed mechanisms to support sustainable development and financial stability:

    • New Development Bank (NDB): Financed approximately 100 projects in areas such as infrastructure, renewable energy, and social development.
    • Contingent Reserve Arrangement (CRA): A financial safety net to address liquidity pressures among member nations.

India, Brazil and South Africa (IBSA) Forum

  • The IBSA forum was inaugurated in June 2003 as a development initiative between India, Brazil and South Africa. 
  • It brought together three democracies, representing a coalition of regional powers of the global South. 

Key differences between Brics+ and IBSA

IBSA BRICS+
Size and membership IBSA is smaller and focused on democratic nations BRICS+ is larger and more diverse in political systems
Focus area IBSA emphasizes democratic values and development cooperation BRICS concentrates more on economic and financial cooperation
Power dynamics IBSA has more equal partnership between members. BRICS has China as a dominant economic force.
Challenges Limited global reach, overshadowed by BRICS in global discussions Internal divisions, balancing different economic interests, maintaining cohesion with expanded membership

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Does Expansion Strengthen or Weaken BRICS+?

Arguments for

  • Strategic Complementarity: Despite their differences, BRICS+ members share common interests, such as reforming global financial institutions, reducing reliance on the U.S. dollar, and amplifying the voice of the Global South.
  • Economic Clout: With an expanded membership, BRICS+ could control a larger share of global GDP and population, increasing its leverage in international negotiations and institutions.
  • Motivations from Global Context: The expansion creates a strong incentive for BRICS+ members to collaborate as a counterbalance to Western dominance.

Arguments Against

  • Varying Political Systems and Economic Goals: The bloc’s members like Iran, Egypt, and the UAE, have divergent political ideologies, governance models, and economic priorities.
  • China-India Rivalry: Historical and ongoing disputes between these two major members may hinder consensus and collaboration.
  • Complexity of Enlarged Membership: The inclusion of new members makes it harder to align interests and formulate policies, especially on sensitive global issues.
  • Consensus Challenges: Reaching agreements on trade, security, and other critical matters becomes increasingly complex with a diverse membership.
  • Diverse Economic Capacities: Differences in economic strength and developmental stages among members may lead to unequal benefits and reduced cooperation.
    • China’s dominant economic role may overshadow other members, leading to an imbalance in influence.
  • Skepticism from the West: BRICS+ is often seen as a challenge to the Western-dominated global economic order, increasing geopolitical tensions, especially with the G7 and NATO allies.
  • Traditional Alliances: Including countries like Saudi Arabia and the UAE, traditionally aligned with the US, may complicate BRICS+’s positioning as an independent bloc.
  • Geopolitical Conflicts: Diverging stances on conflicts (e.g., Middle East tensions, Russia-Ukraine war) could undermine collective efforts.

Way Forward

  • Address Diverging Interests: BRICS+ must acknowledge and reconcile its members’ diverse political systems, economic priorities, and development stages. 
    • India and China’s rivalries need to be managed to ensure collective progress without undermining the bloc’s unity.
  • Promotion of Local Currencies in Trade: The bloc should work on establishing a multi-currency trade framework, possibly with a BRICS+ digital currency. 
  • Facilitating Market Access: BRICS+ should work toward reducing trade barriers, enhancing investment flows, and establishing more diversified supply chains among member nations. 
    • This could also include new sectors such as technology and green energy, which are key to future growth.
  • Refining the New Development Bank (NDB): The NDB should expand its focus to include more sustainable development projects and social infrastructure in developing countries. 
  • Leveraging Global Platforms: BRICS+ must actively engage in platforms like the G20, the WTO etc. 
    • This would amplify its voice in key global policy decisions, from climate change negotiations to international trade deals.
  • Collaborate on Conflict Mediation: BRICS+ could become an important mediator in global conflict resolution, offering a platform for dialogue on regional tensions in Africa, the Middle East, Russia-Ukraine. 
    • The efforts to promote peace and stability would elevate BRICS+ as a global peace broker.
  • Supporting the Global South: BRICS+ should continue to champion the interests of the Global South, advocating for fair trade, debt relief, and infrastructure development in developing nations.

Importance of BRICS for India

  • Key Multilateral Grouping: From India’s perspective, BRICS is one of the top six multilateral groupings, alongside the G-20, Quad, BIMSTEC, G-7, and SCO.
  • Strengthening Russia Ties: Through this grouping, India has strengthened its ties with Russia, balancing its relationships with Western powers and enhancing its geopolitical leverage.
  • Advocating for Global South: India uses BRICS to champion the interests of the Global South, pushing for equitable global governance and development. 
  • India-China Diplomatic Breakthrough: The 2024 BRICS summit in Kazan facilitated the first meeting in five years between Prime Minister Modi and President Xi Jinping. 
    • This bilateral dialogue led to an agreement on border patrolling and disengagement, signalling a thaw in India-China relations.
  • Bridging East and West: BRICS allows India to serve as a bridge between the West and the East, as well as between the North and the South. 
    • This strategic positioning enhances India’s geopolitical relevance and provides it with a unique platform to influence global discourse and policy-making.

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Conclusion

BRICS+ is rapidly evolving into a major geopolitical entity, with the potential to reshape global power dynamics. The future of BRICS+ will depend on how it manages its diversity, navigates its strategic interests, and addresses the changing global order. The upcoming summit in Brazil will likely be a key moment in determining the group’s trajectory.

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UDAAN PRELIMS WALLAH
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Quick Revise Now !
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध

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