INDIA AND BRICS

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Context:

The External Affairs Minister highlighted the significance of BRICS for promoting a multipolar world.

About India-BRICS Relations

BRICS is a group of five major emerging economies: Brazil, Russia, India, China, and South Africa. Together, BRICS countries represent more than 25% of the global economy, about 30% of the world's land surface and nearly 45% of the world’s population. The headquarters is in Shanghai, China.

The group was initially called BRIC (Brazil, Russia, India, China) and was formed in 2009. South Africa joined in 2010, making it BRICS. Recently, new members like Egypt, Iran, Ethiopia, and the UAE have also joined, making BRICS a larger and more influential group.

India plays an essential role in BRICS due to its large economy and population. It is the world’s third-largest economy by purchasing power parity. India’s participation in BRICS helps the group to promote economic growth, sustainable development, and international cooperation.

India’s foreign policy focuses on maintaining good relations with other countries and participating in international organizations. By being part of BRICS, India aims to strengthen its ties with other member countries and work together on global issues.

The core values of BRICS are built on the principles outlined in the UN Charter, such as openness, pragmatism, solidarity, non-bloc nature, and neutrality towards third parties.

Political Relations

India actively participates in BRICS summits and ministerial meetings to discuss important issues and strengthen their relationships.  

India and other BRICS countries work together on global platforms like the United Nations (UN) and the G20. They coordinate their standings on essential matters to have a more powerful voice in international affairs, this collaboration helps them to address global challenges more effectively.

BRICS countries issue joint declarations and resolutions that reflect their shared political goals, these documents cover a wide range of topics, including economic development, climate change, and international security. By showing a united front, they can influence global policies and decisions.

Economic Cooperation

The Fortaleza Declaration established the New Development Bank (NDB) in 2014 to provide funds for various infrastructure and sustainable development projects. India has received support for projects in several sectors, including renewable energy, transportation, and urban development, these investments help boost economic growth and improve living standards.

BRICS countries work together to address global economic challenges. They support debt relief for developing countries and promote sustainable development. By collaborating, they can tackle issues like poverty, inequality, and climate change more effectively.

Intra-BRICS Trade

1. India-Russia Trade, from April 2022 to February 2023, bilateral trade recorded a value of $45 billion. About one-third of this trade consisted of mineral products, including ore and fuel. 
2. Trade between India and China reached an all-time high at $135.98 billion in 2022, and India's trade deficit with China exceeded $100 billion for the first time. Despite political tensions, the trade has remained steady, china exports computers, smartphones, and semiconductors to India, while India exports iron ore, refined petroleum, and raw aluminium to China.
3. India has become Brazil's 5th largest trading partner. In 2022, India exported $9.72 billion value of goods to Brazil, increased from $6.77 billion in 2021. Brazil exported US$6.34 billion to India, a rise from US$4.9 billion in the previous year. India mainly exports refined petroleum, pesticides, and medicaments, while Brazil exports crude petroleum, soybean oil, and gold.
4. In 2022, India’s trade with South Africa reached $20 billion, South Africa exports gold, coal briquettes, and raw copper to India, while India exports refined petroleum, automobiles, and special-purpose ships.

Significance of India’s Relationship with BRICS

1. BRICS provides India with a crucial platform for global engagement on key issues like security, terrorism, climate change, and trade. By collaborating with other BRICS nations, India can address these challenges more effectively and promote its interests on the global stage.
2. As a member of BRICS, India gains access to a large market of over 3 billion people, this opens up vast business opportunities and enhances trade relations. The New Development Bank (NDB), established by BRICS, supports India’s development projects, particularly in infrastructure and sustainable development.
3. BRICS acts as a voice for developing countries, advocating for their rights and interests at international forums. India uses this platform to push for reforms in global governance and to ensure that the concerns of developing nations are addressed.
4. India’s participation in BRICS aligns with its vision of a multipolar world where power is distributed among multiple countries rather than dominated by a few. This helps India to exercise greater influence in international affairs and to promote a more balanced global order.
5. Through BRICS, India engages in various collaborative projects that promote economic growth and sustainable development. These projects include investments in renewable energy, urban development, and technology, which contribute to India’s overall development.
6. BRICS promotes cultural exchanges and people-to-people relations, strengthening the bonds between member countries. Educational and scientific collaborations further improve these relationships, promoting mutual understanding and cooperation.

Challenges  

1. India faces geopolitical tensions with China, and the border disputes and strategic rivalry between India and China can strain their cooperation within BRICS. These tensions periodically overshadow the collaborative efforts of the group.
2. BRICS countries have diverse political and economic interests. For example, India’s views on issues like Afghanistan, Iran, and the Indo-Pacific usually differ from those of Russia and China. These differences can make it challenging to reach a consensus on various matters.
3. China and Russia have significant influence within BRICS, which can sometimes overshadow India’s position. This influence was clear during the recent expansion of BRICS, where China and Russia played a major role in inviting new members. India’s influence within the group can be limited by these dynamics.
4. BRICS lacks a permanent institutional framework, which makes it difficult to coordinate activities and implement decisions effectively. The group relies on annual summits and meetings, which can limit its ability to act swiftly on important issues.
5. The economic disparities among BRICS countries can pose challenges. For example, India’s economy is different in structure and scale compared to Brazil or South Africa. These disparities can lead to differing priorities and approaches to economic policies.
6. India’s participation in BRICS sometimes conflicts with its relationships with Western countries. Balancing its role in BRICS with its strategic partnerships with the US and European nations can be complex. This balancing act requires careful diplomacy to avoid conflicts of interest.

Way Forward

India should concentrate on enhancing trade and investment with BRICS countries. By diversifying its export portfolio and reducing trade deficits, especially with China, India can achieve more balanced trade relations. Promoting sectors like technology, pharmaceuticals, and renewable energy can open new routes for economic cooperation.

India can use BRICS to address international security challenges. By participating in joint counter-terrorism initiatives and security dialogues, India can enhance regional stability. Strengthening ties with Russia and South Africa can also help in balancing China’s influence within the group.

India can utilise the BRICS platform to press for reforms in global governance institutions like the United Nations and the International Monetary Fund. By advocating for a more inclusive and representative global order, India can ensure that the interests of developing countries are better represented.

Strengthening people-to-people relations through cultural exchanges, educational programs, and scientific collaborations can enhance mutual understanding and cooperation. These initiatives can build stronger relationships and promote goodwill among BRICS nations.

India needs to carefully balance its position in BRICS with its strategic partnerships with Western countries. By maintaining a neutral stance and focusing on common goals, India can navigate potential conflicts of interest and maximise its benefits from both alliances.

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Source: 

The Hindu

Lok Sabha