BRICS at the 18th New Delhi Summit
Why in News?
- The 18th BRICS Summit (New Delhi, 12–13 September 2026, theme: Building for Resilience, Innovation, Cooperation and Sustainability) unanimously adopted the New Delhi Declaration under India’s chairship.
- However, former NSA M.K. Narayanan questioned BRICS’s relevance, citing China’s dominance and internal imbalances.
Key Features of the Declaration
- The Declaration backs local currency trade and inter-operable cross-border payment systems.
- It supports the BRICS Economic Partnership Strategy 2030 and a Global Value Chain Action Plan 2026–2030.
- It seeks reform of the UN and Bretton Woods institutions and defends the WTO, including a two-tier dispute settlement mechanism.
- It supports de-escalation in West Asia, humanitarian access in Gaza and Palestinian self-determination.
- It supports cooperation on AI governance, including wider access to computing resources.
- India proposed 10 global governance reform proposals, to be shaped into a reform roadmap by the next summit.
Multi-Dimensional Analysis
Strategic Autonomy
India balances BRICS with the Quad and the West, following multi-alignment and variable geometry (issue-based partnerships, not fixed alliances).
China Factor
China’s economy is larger than the other members’ combined, which risks turning BRICS into a vehicle for Chinese interests. India–China ties have been calm since Galwan (2020), but mistrust limits joint action.
Global Governance
BRICS keeps UNSC, IMF and World Bank reform on the agenda, but the demands have gone largely unmet since 2009, which hurts its credibility.
Economy
Local currency trade can cut transaction costs and dollar dependence, but India says it does not seek de-dollarisation. India’s large trade deficit with China means deeper BRICS trade could increase dependence on Chinese supply chains.
Security
Explicit language on terrorism strengthens India’s diplomatic position, but consensus texts rarely become enforceable action.
Significance
- Voice for the Global South: BRICS gives developing countries a platform to demand fairer global institutions.
- India’s diplomatic stature: Building consensus among rivals strengthens India’s role as a bridge between the West and the non-West.
- Alternative finance: The NDB and CRA offer development funding and liquidity support outside Western-led systems.
Challenges
China’s Preponderance
China’s weight risks turning BRICS into a vehicle for its own interests.
Heterogeneous Membership
Rivals such as Iran and the UAE or Egypt and Ethiopia make consensus thinner.
Weak Institutions
Without a secretariat, BRICS cannot monitor or enforce its commitments.
Anti-West Image
Russia’s and China’s confrontation with the West clashes with India’s Western partnerships.
Existing Measures
- New Development Bank (HQ Shanghai): It funds infrastructure and sustainable development projects.
- Contingent Reserve Arrangement: It supports members facing balance-of-payments stress.
- BRICS Cross-Border Payments Initiative (Kazan, 2024): It aims to link members’ payment systems.
- RBI rupee trade settlement (2022): It allows trade settlement in rupees through Special Rupee Vostro Accounts.
- Voice of the Global South Summits (2023 onwards): India uses them to represent developing countries’ concerns.
