BRICSEEIIU, formerly BRICS, has expanded with full membership of new countries.

What is BRICS?

• BRICS is an intergovernmental organization 
  • Original Members: Brazil, Russia, India, China, South Africa
  • New Members: Egypt, Ethiopia, Indonesia, Iran, and the UAE.
• Key Principles: Operates on non-interference, equality, and mutual benefit.
• Origin of the Term “BRIC”
  • Coined in 2001 by Jim O’Neill, a Goldman Sachs economist, to highlight investment opportunities in Brazil, Russia, India, and China.
  • Initially focused on economic potential, later evolved into a geopolitical and geoeconomic bloc.
• After South Africa’s entry in 2010, The group was renamed BRICS.
• Recent Expansion and New Membership
  • New Members in 2024 and 2025:
    • Iran, Egypt, Ethiopia, and UAE joined during the 2024 summit in Russia.
    • Indonesia became the first Southeast Asian member in 2025.
  • BRICS+: Informal term used to reflect the inclusion of new members.

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Expansion of BRICS: Reasons

• Strategic global influence:  The primary reason is to create counter balance to western dominance in the institutions working on an international level. 
  • It is related to distribution of global power across multiple players.
• Economic strength: The main reason behind expansion of brics is to strengthen its economic potential. For it, it includes countries with high economic potential.
  • This institution promotes trade and investment opportunities among its member countries.
• Energy security: Apart from trade and investment, its decision to include countries like Saudi Arabia and Iran 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 counties like Egypt and Ethiopia helps in accessing maritime trade routes.
  • It promotes cooperation and stability in the economies of the member countries. 

Significance of Indonesia’s Membership

• Impact on BRICS
  • Indonesia strengthens BRICS’ influence in the Asia-Pacific region as Southeast Asia’s largest economy.
  • It brings additional support to BRICS’ goals of reforming global institutions and reducing dependency on Western-dominated systems.
• Importance for India
  • Indonesia’s inclusion deepens India’s engagement in Southeast Asia, a key region for global trade and geopolitics.
  • It reinforces India’s leadership in South-South cooperation and its efforts to promote emerging economies’ interests.
• Countering Western Dominance
  • BRICS continues to serve as a counterweight to Western powers, particularly the G7.
  • The bloc aims to challenge the dominance of the US dollar in international trade and promote non-dollar transactions.

BRICS’ Growing Global Influence

• Key Statistics
  • BRICS accounts for 35% of global GDP and 46% of the world’s population.
  • With the addition of new members, BRICS is becoming more influential in global decision-making.
• Objectives and Achievements
  • BRICS prioritizes reducing reliance on the US dollar in trade and finance.
  • Recent discussions focused on strengthening local currencies and promoting financial reforms.

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How effective have the BRICS financial institutions been?

• The primary institution of brics was New Development Bank (NDB). 
  • It was established in 2014 and headquartered in Shanghai.
  • It offers more flexible and inclusive financial options than traditional western institutions like the IMF and world bank. 
    • It also succeeded in maintaining strong credit ratings, equal shareholder participation, and better access to funds. 
  • Since 2016, it has approved over $32 billion for 96 projects.
• Another institution is Contingent Reserve Arrangement (CRA). 
  • Both the institutions were created as an alternative to the Bretton Woods system, which includes institutions like the IMF and World Bank.
  • Contingent Reserve Arrangement (CRA) provides financial support during balance of payment crisis, but is limited to brics members. 
  • Its foundation is built on the Treaty for the Establishment of a BRICS Contingent Reserve Arrangement. 
  • It acts as an alternative to the IMF and is a way better source for short term liquidity. 

India and BRICS

India is a key member of BRICS, and its participation in the group has brought several advantages.

• Strategic Cooperation
  • Global Platform: BRICS provides India with an opportunity to engage on critical issues such as security, counter-terrorism, climate change, and trade.
• Economic Advantages
  • Access to Markets: India benefits from a large market of over 3 billion people, creating significant business opportunities.
• Promoting Multilateral Reforms
  • Global Order Reforms: India collaborates with BRICS members to advocate for a more inclusive and equitable global governance structure.
• Strengthening South- Cooperation
  • Collaboration with Developing Nations: BRICS enables India to promote trade, investment, and technology transfer among developing countries.
• Supporting the New World Order
  • BRICS Vision: During the 15th BRICS Summit, the group was described as a key pillar of the emerging New World Order, emphasizing its growing influence.

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Challenges for India

• Balancing Global Powers: India faces the challenge of navigating between a China-centric and West-centric world order while maintaining a balanced approach.