BRICS — Bloc, Expansion & New Development Bank

Origins and Evolution

BRICS is an intergovernmental organisation comprising major emerging market economies. The concept originated with economist Jim O'Neill (Goldman Sachs, 2001), who coined the acronym BRIC — Brazil, Russia, India, China — as a shorthand for the world's fastest-growing large economies.

The first formal BRIC foreign ministers' meeting was held in New York in 2006; the first standalone Leaders' Summit was in 2009. South Africa was invited to the 2011 Sanya Summit and formally joined, completing the BRICS five.

Membership

Original 5 (BRICS-5, 2006–2024)

Expansion — 5 New Full Members (2024–2025)

At the Johannesburg Summit (August 2023), six countries were invited to join. Five accepted; Argentina declined.

Argentina was invited but declined membership in September 2024 — President Javier Milei's government, which took office in December 2023, rejected joining BRICS as inconsistent with its economic alignment with the West.

Saudi Arabia was officially listed as the 11th full member by the BRICS Brazil Presidency (official BRICS website, 2025), though multiple sources (CFR, Reuters, CNBC Africa) reported that Riyadh had not formally ratified its membership as of mid-2025, maintaining strategic ambiguity to preserve its US ties. Saudi Arabia participated in the 17th BRICS Summit (Rio de Janeiro, July 2025) and is treated as a full member by the bloc.

Current membership: 11 full members (as of July 2025, per BRICS official records, though Saudi Arabia's formal accession documentation remains contested).

BRICS at a Glance — Key Statistics

BRICS now accounts for a larger share of global GDP (PPP) than the G7 (~43%). This shift underlies the bloc's claim to represent a "non-Western" multipolar economic order.

Kazan Summit 2024

15th BRICS Summit — Kazan, Russia, 22–24 October 2024 (Russia's BRICS Presidency)

Theme: "Strengthening Multilateralism for Just Global Development and Security"

Key Outcomes

13 Countries Invited as BRICS Partners (Kazan 2024) → 9 Confirmed (January 2025)

At Kazan 2024, 13 countries were invited to the new BRICS Partner category: Algeria, Belarus, Bolivia, Cuba, Indonesia, Kazakhstan, Malaysia, Nigeria, Thailand, Turkey, Uganda, Uzbekistan, Vietnam.

Effective 1 January 2025, 9 countries formally assumed BRICS Partner status: Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Nigeria, Thailand, Uganda, Uzbekistan. Algeria, Turkey, Vietnam, and Indonesia did not activate partner status at that date — Indonesia instead acceded as a full member on 1 January 2025; Algeria, Turkey, and Vietnam have not formally activated their partner status (as of May 2026).

Brazil BRICS Presidency 2025

Host: Museum of Modern Art, Rio de Janeiro; 17th BRICS Summit: 6–7 July 2025

Theme: "Strengthening Global South Cooperation for More Inclusive and Sustainable Governance"

Brazil's four priorities:

1. Reform of global governance (UN, Bretton Woods institutions)
2. Sustainable development and climate finance
3. Artificial intelligence governance and digital cooperation
4. South-South trade and investment facilitation

17th BRICS Summit — Rio de Janeiro Declaration Outcomes

The Rio de Janeiro Declaration (126 commitments) was signed by all 11 full member states on 6 July 2025. Notable leadership absences: Xi Jinping did not attend (first absence from a BRICS Summit — Premier Li Qiang represented China); Putin did not attend (ICC arrest warrant risk in Brazil).

Three additional declarations adopted:

1. BRICS Leaders' Framework Declaration on Climate Finance — first collective BRICS commitment under the UNFCCC/Paris Agreement; timed before COP30 (Brazil, November 2025)
2. BRICS Leaders' Declaration on Global Governance of Artificial Intelligence
3. BRICS Partnership for the Elimination of Socially Determined Diseases

New financial mechanism: BRICS Multilateral Guarantee (BMG) facility — aimed at de-risking private sector investment in sustainable infrastructure across the Global South.

Over 200 cooperation mechanisms were created or reinforced during Brazil's presidency year.

New Development Bank (NDB)

The New Development Bank is BRICS's multilateral development institution, established to fund infrastructure and sustainable development projects in BRICS and other emerging economies.

NDB — Core Facts

NDB vs World Bank — Key Distinctions

Significance: The NDB's equal voting structure is its key distinction from the IMF and World Bank, where voting power is weighted by economic contribution and dominated by the US and Europe.

Contingent Reserve Arrangement (CRA)

The BRICS Contingent Reserve Arrangement (CRA) is a framework for providing liquidity support to BRICS members facing balance of payments pressures — functioning as a mini-IMF.

The CRA is distinct from the NDB — NDB lends for projects; CRA provides emergency balance of payments support.

India and BRICS — Opportunities and Constraints

India's Strategic Interests

India's Core Constraints

1. China factor: Sino-Indian border tensions (Galwan 2020, ongoing LAC disputes) create fundamental trust deficit within the bloc; China dominates BRICS economically (contributes ~70% of BRICS GDP combined)
2. Pakistan in SCO: Unlike SCO, BRICS does not include Pakistan — but India-China rivalry shapes every BRICS negotiation
3. De-dollarisation pressure: Russia and China have pushed hard for a BRICS currency or payment system to reduce dollar dependence; India has consistently resisted, arguing it would be premature, economically risky, and would target the US unnecessarily
4. NDB governance drift: NDB expanded membership (9 confirmed members as of May 2025, with further prospective members including Uruguay) risks diluting BRICS-specific mandate
5. Russia-Ukraine war: India's non-condemnation of Russia contrasts with Western pressure; complicated India's G20 and BRICS positioning simultaneously

India's Explicit Stance on De-dollarisation

The MEA has explicitly stated that de-dollarisation is "not on India's agenda" within BRICS. External Affairs Minister S. Jaishankar confirmed that no BRICS currency is under consideration. India's position: promote local currency trade on bilateral basis (e.g., India-Russia rupee-rouble trade for oil) but not push for a replacement to the dollar-dominated global system — which India sees as both premature and potentially destabilising.

BRICS vs G7 vs G20 — Comparison

Key BRICS Summits

BRICS and the NDB — Geopolitical Significance

BRICS represents a non-Western multilateral architecture — not anti-Western but offering alternatives to Bretton Woods institutions. Its significance lies in:

1. Alternative financing: NDB offers project loans without structural adjustment conditionalities
2. Alternative narrative: A "counter-hegemonic" narrative challenging US dollar dominance and G7 agenda-setting
3. India's paradox: India benefits from the non-Western platform but is uncomfortable with BRICS being weaponised against the dollar-dominated system, given India's own interests in financial stability and US relations
4. BRICS+ expansion: The 13 partner countries from Kazan represent a soft expansion that makes BRICS more of a "Global South" club than a tight economic grouping
5. China's dominance: China contributes ~70% of BRICS combined GDP; the bloc risks becoming an instrument of Chinese influence rather than genuine multipolarity

Cross-paper relevance

• GS2 (primary) — BRICS Kazan Summit 2024 (expansion, 13 partner countries); New Development Bank (NDB); India's role in BRICS; BRICS de-dollarisation debate; India-China coexistence in BRICS
• GS3 — NDB as alternative development finance; BRICS economic complementarity; China's ~70% share of BRICS GDP
• GS4 (Ethics) — Multi-alignment ethics: belonging to BRICS (Russia-China dominated) and Quad simultaneously; development finance and conditionality
• Essay — "BRICS at 20: from potential to reality?"; "De-dollarisation: threat to US hegemony or global financial stability risk?"

Recent Developments (2024–2026)

BRICS Kazan Summit 2024 — Expansion and Geopolitical Impact

The 16th BRICS Summit was held in Kazan, Russia on 22–24 October 2024. BRICS formally expanded to include four new full members from 1 January 2024: Egypt, Ethiopia, Iran, and UAE (Saudi Arabia deferred). Thirteen new "BRICS Partner Countries" were invited: Algeria, Belarus, Bolivia, Cuba, Indonesia, Kazakhstan, Malaysia, Nigeria, Thailand, Türkiye, Uganda, Vietnam, and Uzbekistan — with nine becoming official partners on 1 January 2025.

The Kazan Summit adopted the Kazan Declaration and focused on: de-dollarisation (BRICS Payment System, BRICS grain exchange); governance reform (reforming Bretton Woods institutions); and geopolitical positioning. The summit provided Russia a major diplomatic stage to demonstrate it was not internationally isolated despite Western sanctions. BRICS' combined GDP (PPP) now exceeds the G7's, and its member states represent over 45% of the world's population.

UPSC angle: BRICS full members as of July 2025 (11): Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, UAE, Indonesia (joined January 2025), Saudi Arabia (joined July 2025). Belarus is only a partner country, not a full member. Of 13 countries invited as partners at Kazan, 9 formally activated partner status on 1 January 2025: Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Nigeria, Thailand, Uganda, Uzbekistan. Kazan 2024 outcomes: BRICS grain exchange proposal, BRICS Cross-Border Payment Initiative (BCBPI), Kazan Declaration.

Modi-Xi Bilateral at Kazan — Direct Diplomatic Reset

PM Modi and President Xi Jinping held a bilateral summit on the margins of the BRICS Kazan Summit (October 2024) — their first formal bilateral meeting since the Galwan clash (June 2020). The meeting directly preceded India and China announcing the LAC patrolling agreement (21 October 2024), signalling that the BRICS platform was used as a venue for the diplomatic reset. Both leaders agreed to restore normal diplomatic and people-to-people relations and to intensify work on boundary management.

UPSC angle: Modi-Xi bilateral at BRICS Kazan (October 2024) is critically important — it was the first Modi-Xi summit in 5 years and directly preceded the LAC breakthrough. Demonstrates BRICS as a platform for bilateral diplomacy beyond its multilateral purpose.

India's BRICS Engagement — De-Dollarisation Caution

India's approach to de-dollarisation within BRICS has been cautious. India opposes any mechanism that would make BRICS membership contingent on abandoning the dollar, while being open to exploring local currency trade settlement for bilateral transactions. India is concerned that a formal BRICS currency or SWIFT alternative would damage India's own financial integration with the dollar-based global system and invite Western economic countermeasures. India also resists Chinese proposals that would give Beijing disproportionate influence in any BRICS financial architecture.

UPSC angle: India's stance on BRICS de-dollarisation — cautious support for local currency trade, opposition to formal BRICS currency — reflects India's strategic autonomy and multi-alignment doctrine.

17th BRICS Summit — Rio de Janeiro, Brazil (July 2025)

Brazil assumed the BRICS Chairmanship for 2025 on 1 January 2025. The 17th BRICS Summit was held at the Museum of Modern Art, Rio de Janeiro, Brazil on 6–7 July 2025, under the theme: "Strengthening Global South Cooperation for More Inclusive and Sustainable Governance."

Key outcomes:

• The Rio de Janeiro Declaration was adopted by leaders of the 11 member states, focusing on Global South cooperation, multilateral governance reform, and sustainable development.
• Three additional documents were adopted: the BRICS Leaders' Framework Declaration on Climate Finance, the BRICS Leaders' Declaration on Global Governance of Artificial Intelligence, and the BRICS Partnership for the Elimination of Socially Determined Diseases.
• A BRICS Development Bank (NDB) expansion framework for small island developing states and LDCs was discussed.

Notable absences: Chinese President Xi Jinping did not attend — his first absence from a BRICS Leaders' Summit — sending Premier Li Qiang instead (citing scheduling conflicts). Russian President Putin also did not attend (ICC warrant risk in Brazil). India was represented by PM Modi.

BRICS membership as of July 2025 (11 full members): Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, UAE, Indonesia (joined January 2025), Saudi Arabia (joined July 2025). Nine partner countries joined effective January 2025.

Chairmanship succession: Brazil's chairmanship concluded at the Rio Summit; the 2026 BRICS Chairmanship passed to India (effective 1 January 2026), not UAE. India chairs BRICS for the fourth time (previous: 2012, 2016, 2021).

UPSC angle: Prelims — 17th BRICS Summit: Rio de Janeiro, July 6–7, 2025; Brazil chair; Xi Jinping absent (Li Qiang represented China); Indonesia and Saudi Arabia as new full members (11 total); India chairs BRICS in 2026 (4th time), theme "Building for Resilience, Innovation, Cooperation and Sustainability"; 18th BRICS Summit: New Delhi, September 12–13, 2026. Mains — assess the significance of the Rio BRICS Summit given notable leadership absences; what does Xi's absence signal about China's BRICS priorities?

India's BRICS Chairmanship 2026 — 18th BRICS Summit

India assumed the BRICS Chairmanship on 1 January 2026, taking over from Brazil. This is India's fourth BRICS chairmanship (previous: 2012, 2016, 2021) and the first in the expanded 11-member format.

Theme: "Building for Resilience, Innovation, Cooperation and Sustainability" (acronym: BRICS) — India's theme is notably aligned with its own India Stack / DPI model of governance.

Summit: 18th BRICS Summit, New Delhi, 12–13 September 2026. Russian President Putin confirmed attendance (Kremlin, 2026), marking his return to BRICS Leaders' Summits.

Four Pillars of India's Chairmanship:

1. Resilience — strengthening multilateral institutions; disaster risk reduction
2. Innovation — Digital Public Infrastructure (DPI) as Global South development model; AI governance
3. Cooperation — South-South trade, intra-BRICS investment facilitation, BRICS+ engagement
4. Sustainability — climate finance, green energy transition, COP30 follow-up

Signature initiative: India is promoting an open-architecture DPI model for the Global South — building on its Aadhaar/UPI success but allowing countries to adapt it to their specific needs rather than adopting the Indian system wholesale.

Geopolitical backdrop: India's chairmanship coincides with the Iran-UAE diplomatic tensions within BRICS (both are full members; Iran's claims about UAE support for Israeli operations created friction at the early 2026 Foreign Ministers' meeting — India as chair navigated this through bilateral consultation). India's role as a bridge-builder between BRICS members with divergent geopolitical interests is the central Mains analytical theme.

UPSC angle: Prelims — 18th BRICS Summit: New Delhi, September 12–13, 2026; India chairs BRICS 4th time; theme "Building for Resilience, Innovation, Cooperation and Sustainability." Mains — India's BRICS chairmanship priorities; DPI as Global South development model; managing Iran-UAE tensions within BRICS; contrast with India's G20 2023 legacy.

New Development Bank (NDB) — Expansion and India's Role

The NDB (headquartered in Shanghai; USD 100 billion authorised capital; equal voting rights among original 5 members) admitted Bangladesh, UAE, Egypt, and Uruguay as new members in 2021–24. Dilma Rousseff (Brazil's former President) succeeded K.V. Kamath (India) as NDB President in March 2023 and was re-elected in March 2025 for a second five-year term (July 2025–July 2030). NDB's cumulative project approvals reached ~USD 39 billion by end-2024 (NDB Annual Report 2024). China is the largest borrower (~$6.5 billion, 22 approved projects); India follows with ~$6.1 billion (24 approved projects). India's NDB portfolio including disbursements totalled ~$8.6 billion (as of end-2023 per NDB Country Portfolio Evaluation 2024).

The Russia-Ukraine war complicated NDB operations — NDB paused new projects in Russia and Belarus to protect its credit rating and access to global capital markets. Fitch downgraded NDB from AA+ to AA in July 2022 (citing US capital market access risk from Russia sanctions); JCR affirmed AAA rating with stable outlook in March 2025. India navigated this carefully, supporting NDB's continued operation while maintaining strategic autonomy on Russia sanctions.

Algeria joined NDB as its 9th member on 22 May 2025 (instrument of accession deposited 19 May 2025). NDB's cumulative project approvals crossed USD 40 billion across 120+ projects by May 2025 (NDB official data).

UPSC angle: NDB facts — HQ Shanghai, USD 100 billion authorised capital, equal voting rights (original 5), Dilma Rousseff as current President (re-elected March 2025 for second term to July 2030), 9 members (as of May 2025; Algeria = 9th member; admitted 22 May 2025), cumulative approvals ~$40B (120+ projects, May 2025), China is largest borrower followed by India. Fitch downgrade (AA, July 2022) and JCR AAA affirmation (March 2025) are nuanced credit-rating facts. Russia-Ukraine war impact on NDB operations is an important nuance. Dilma Rousseff's NDB re-election is a Prelims 2027 alert fact.

PYQ Relevance

• (Prelims 2021): "With reference to the New Development Bank, which of the following statements is correct?" — HQ Shanghai; equal voting rights; $100B authorised capital
• (Prelims 2024 pattern): BRICS membership after expansion; Kazan Summit outcomes; NDB president
• (GS2 Mains 2022): "Discuss the relevance of BRICS in the current global order. Has the bloc lived up to its initial promise?"
• (GS2 Mains 2023): "Examine India's role in BRICS and assess the opportunities and challenges for India in the expanded BRICS."

Exam Strategy

Non-negotiable Prelims facts:

• BRIC coined by Jim O'Neill (Goldman Sachs) in 2001
• First BRIC Summit: 16 June 2009, Yekaterinburg
• South Africa joined: 2011 (Sanya Summit) → became BRICS
• NDB HQ: Shanghai; authorised capital: $100 billion; president: Dilma Rousseff (first term March 2023; re-elected March 2025 for 2nd term to July 2030)
• NDB founding: 2014 agreement; operational July 2015; cumulative approvals ~$40B (120+ projects, May 2025); China is largest borrower (not India)
• NDB members: 9 (5 original BRICS + Bangladesh, UAE, Egypt, Algeria); Algeria = 9th member (22 May 2025); Fitch rating: AA (downgraded July 2022); JCR: AAA with stable outlook (March 2025)
• CRA: $100 billion; China = $41B; Brazil/Russia/India = $18B each; South Africa = $5B
• New members (Jan 2024): Egypt, Ethiopia, Iran, UAE; Indonesia (Jan 2025); Saudi Arabia (July 2025) → 11 full members
• Argentina declined (September 2024); Saudi Arabia formally joined July 2025 at 17th Summit (Rio de Janeiro)
• Kazan 2024: 13 countries invited as partners; 9 formally activated partner status on 1 January 2025 (Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Nigeria, Thailand, Uganda, Uzbekistan); Indonesia became full member, not partner
• 17th BRICS Summit: Rio de Janeiro, July 6–7, 2025; Xi Jinping absent (Li Qiang attended); Putin absent (ICC warrant); India represented by PM Modi; Rio de Janeiro Declaration adopted
• India chairs BRICS 2026 (4th time); theme: "Building for Resilience, Innovation, Cooperation and Sustainability"; 18th BRICS Summit: New Delhi, September 12–13, 2026

Mains analytical angles:

• BRICS as India's multi-alignment platform: how India uses BRICS alongside QUAD and G20 simultaneously
• India's de-dollarisation stance: why India resists — strategic interests in dollar stability, US ties, premature alternative infrastructure
• China's dominance within BRICS: ~70% of combined GDP — is it genuine multilateralism or Chinese influence?
• NDB vs World Bank: equal voting as the key distinction; no conditionality as the selling point for Global South
• BRICS expansion dilemma: larger membership brings geopolitical weight but dilutes coherence; BRICS+ as loose "Global South" umbrella
• India-China within BRICS: managing rivalry within a cooperative framework — lessons from SCO parallels

Cross-link: For current BRICS developments under India's 2026 Chairmanship and 18th BRICS Summit (New Delhi, September 12–13, 2026), follow Ujiyari.com.

Key Terms

New Development Bank

• Definition: The New Development Bank (NDB) is a multilateral development bank established by the BRICS countries (Brazil, Russia, India, China, South Africa) to mobilise resources for infrastructure and sustainable-development projects in emerging economies and developing countries; it is headquartered in Shanghai, China.
• Context: The Agreement establishing the NDB was signed on 15 July 2014 at the 6th BRICS Summit in Fortaleza, Brazil, and the bank's founding members formally joined on 3 July 2015. It was created as an alternative to Western-dominated institutions like the World Bank and IMF, offering developing nations a source of finance with more equitable governance. The NDB began with an initial authorised capital of US$100 billion, with the founding BRICS nations subscribing equally and each holding an equal vote and no veto. Since 2021 it has expanded beyond the original five, admitting Bangladesh, the UAE, Egypt and Algeria.
• UPSC Relevance: For Prelims, the NDB is a high-frequency factual topic: aspirants must know its headquarters (Shanghai), founding (Fortaleza Agreement 2014, operational 2015), the equal capital-subscription model among BRICS founders, and that it is distinct from the BRICS Contingent Reserve Arrangement (CRA). For Mains GS2 (international institutions and groupings) and GS3 (economic development, infrastructure financing), it features in discussions of reform of the global financial architecture, de-dollarisation/local-currency lending, and India's role in alternative multilateral bodies. It is a foundational concept underpinning questions on BRICS, AIIB, and the broader theme of South-South cooperation; aspirants should not confuse the NDB with the Beijing-headquartered Asian Infrastructure Investment Bank (AIIB).