India and BRICS: Multilateralism and Reform Agenda
TOPIC CLASSIFICATION
Subject: International Relations Sub-area: Multilateral Groupings — BRICS Prelim PYQ Trend: Moderate (members, summits, NDB) Mains Relevance: GS-2 (Multilateralism, Global Governance Reform)
EXAMINER REASONING
BRICS gained new relevance after the 2023 expansion and the push for de-dollarisation. The examiner tests: (a) BRICS as a platform for Global South voice — IMF/World Bank reform, UNSC reform; (b) economic — NDB (New Development Bank), BRICS CRA (Contingent Reserve Arrangement), trade in local currencies; (c) expansion — 2023 Johannesburg summit added 6 new members; (d) challenges — China's dominance, India-China tensions, Russia's isolation post-Ukraine, internal diversity (authoritarian vs democratic). Expect questions on BRICS as an alternative to Western-dominated institutions.
Core Concept
What is BRICS? Originally BRIC (2001 — Jim O'Neill, Goldman Sachs); formalised as BRICS after South Africa joined (2010). Annual summits since 2009.
Members:
- Original (5): Brazil, Russia, India, China, South Africa
- Expanded (2023, 2024): Egypt, Ethiopia, Iran, Saudi Arabia, UAE (added 2024); Argentina initially accepted but withdrew
- Currently (9 active members): Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, UAE
Key Institutional Mechanisms:
| Institution | Purpose | Capital | India's Stake |
|---|---|---|---|
| NDB (New Development Bank) | Infrastructure & sustainable dev lending | $50 bn (initial), $100 bn (target) | 20% equity (equal with BRICS members) |
| CRA (Contingent Reserve Arrangement) | Currency swap for balance-of-payments crises | $100 bn pool | $18 bn commitment |