Why in the news?

  • For its year-long BRICS Presidency in 2026, India is going to follow the model of its 2023 G20 Presidency and take the meetings and delegations to all 28 states and nine Union Territories.

BRICS Grouping

  • Formation
    • In 2001, the British Economist Jim O’Neill coined the term BRIC to describe the four emerging economies of Brazil, Russia, India, and China.
    • The grouping was formalised during the first meeting of BRIC Foreign Ministers’ in 2006.
    • Founded in 2009.
    • South Africa was invited to join BRIC in December 2010, after which the group adopted the acronym BRICS.
  • BRICS: Brazil, Russia, India, China, and South Africa.
  • New Members: Egypt, Iran, Saudi Arabia, UAE, Ethiopia, Indonesia.
  • Partner Countries: Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Thailand, Uganda, and Uzbekistan.
  • Facts:
    • The BRICS brings together five of the largest developing countries of the world, representing 41% of the global population, 24% of the global GDP and 16% of the global trade.
    • The chairmanship of the forum is rotated annually among the members, in accordance with the acronym B-R-I-C-S.
  • Objectives:
    • Promote peace, security, and development in member countries and globally.
    • Reform international financial and governance institutions (e.g., IMF, World Bank) to reflect emerging economies’ interests.
    • Enhance multilateral trade and investment, cooperation in various sectors (technology, finance, health).
    • Encourage people-to-people exchanges and cultural ties.
  • Key Initiatives:
    • New Development Bank (NDB): Established in 2014 at the BRICS summit in Fortaleza, Brazil. Provides funding for infrastructure and sustainable development projects in BRICS and other emerging economies.
    • Contingent Reserve Arrangement (CRA): A framework to support members in case of short-term balance of payment pressures.
    • BRICS Business Council & Think Tank Council: Strengthens economic ties and policy coordination.
  • Significance:
    • Provides a platform for non-Western countries to voice their perspectives in global governance.
    • Promotes South-South cooperation.
    • Acts as a counterbalance to Western-dominated institutions like G7 and NATO.
    • Encourages a multipolar world order.
  • Challenges:
    • Divergent national interests (e.g., India-China border disputes).
    • Economic and political differences may hinder deeper integration.
    • Criticism of lacking a clear institutional structure or binding charter.

Source: Indian Express