Syllabus: GS2/International Relations
Context
- The 18th BRICS Summit, hosted by India in New Delhi recently, adopted the New Delhi Declaration, reaffirming reformed multilateralism amid wars, protectionism and unilateral actions by major powers.
Key Highlights of New Delhi Declaration
- Reformed Multilateralism: Members reiterated support for a more democratic, representative, accountable and effective international order, with the UN at its centre.
- UNSC Reforms: BRICS backed comprehensive UN Security Council (UNSC) reform and greater representation of developing countries.
- China and Russia, as permanent members, reiterated support for the aspirations of Brazil and India for a greater role, including in the UNSC.
- Global South: The grouping reaffirmed its role as a voice for Emerging Markets and Developing Countries (EMDCs) and Least Developed Countries, particularly from Africa, Asia and Latin America.
- Trade & Finance: It opposed unilateral tariffs, non-tariff barriers and coercive sanctions, while supporting WTO reform, restoration of its two-tier dispute-settlement mechanism and greater EMDC representation in the IMF and World Bank.
- Intra-BRICS Trade: Members supported deeper economic cooperation, resilient supply chains and practical solutions for cross-border payments and trade settlements in local currencies.
- Conflicts: The Declaration condemned unilateral wars and stressed dialogue, preventive diplomacy and peaceful dispute settlement.
- It took a particularly strong position on Palestine and Lebanon, including humanitarian access, Palestinian self-determination and the two-state solution.
- West Asia Compromise: References to the U.S.-Israel attacks on Iran, assassination of Iran’s Supreme Leader Ali Khamenei and Iran’s retaliatory attacks, including on the UAE, were omitted reportedly as a last-minute compromise between Iran and the UAE.
- Terrorism: BRICS strongly condemned the 22 April 2025 terrorist attack in Jammu and Kashmir, in which 26 people were killed, and called for zero tolerance towards terrorism and its financing.
Significance of the Declaration
- The Summit demonstrated that BRICS can forge consensus despite sharp geopolitical differences.
- Its success rested on high-level participation, emphasis on intra-BRICS trade mechanisms and consensus-building during wartime.
- India’s fourth BRICS chairship strengthened its image as a Global South balancer with access to competing geopolitical camps.
- It facilitated the highest-level Iran-UAE bilateral meeting since the war began.
- India’s engagement with Iran helped address concerns over its perceived tilt towards the US and Israel, and its meeting with China provided space to reaffirm political will to normalise ties, while outreach to ASEAN and African leaders reinforced India’s wider partnerships.
- India hosted over 400 BRICS meetings and engagements across 30 Indian cities, broadening institutional and people-to-people cooperation.
Concerns & Issues Ahead
- Internal Divergences: India-China tensions, Iran-UAE differences and differing approaches to global conflicts can constrain consensus.
- Saudi Arabia’s Ambiguity: Saudi Arabia has not formally joined BRICS; Foreign Minister Faisal bin Farhan Al Saud arrived after the main session that adopted the joint statement.
- Implementation Deficit: Declarations on UNSC, IMF, WTO reform and local-currency trade require concrete institutional outcomes.
- Geopolitical Polarisation: BRICS needs to avoid becoming merely an anti-Western bloc while retaining strategic autonomy.
Way Forward: Strengthening Measures
- Convert declarations into time-bound implementation roadmaps.
- Deepen local-currency settlements, interoperable payment systems and intra-BRICS trade.
- Build consensus through issue-based coalitions, rather than forcing uniform positions.
- Strengthen BRICS’ role in UN, IMF, World Bank and WTO reforms.
- Expand cooperation in health, technology, climate resilience, food security and counter-terrorism.
BRICS
- Originally BRIC (2001, coined by Jim O’Neill), and became BRICS in 2010 with the inclusion of South Africa.
- Members: Brazil, Russia, India, China, and South Africa, and membership was expanded to include Egypt, Ethiopia, Iran, Saudi Arabia, the United Arab Emirates, and Indonesia.
- Objectives:
- Promote multipolar world order;
- Reform global financial institutions like IMF, World Bank, UNSC;
- Enhance South-South cooperation;
- Support sustainable development and inclusive growth
- Significance:
- The total GDP of the BRICS nations in nominal dollar terms as of 2026 is over US$ 32 trillion, accounting for 28–30% of global GDP.
- In Purchasing Power Parity (PPP) terms, the BRICS is US$ 78 trillion, representing more than 40% of global GDP, surpassing the G7’s 27.8% share in PPP terms.
Institutional Mechanisms
- New Development Bank (NDB), 2014:
- Headquarter: Shanghai
- Purpose: Finance infrastructure & sustainable development projects
- Seen as an alternative to World Bank/IMF dominance
- Contingent Reserve Arrangement (CRA):
- Provides liquidity support during financial crises
- Helps reduce dependence on Western-led financial systems
BRICS Presidency
- BRICS Presidency refers to the annual rotating chairmanship, where one member country leads the forum for a year.
- Each country acts as chair (host) for one year
- It rotates among members in alphabetical order.
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