Daily Editorial Analysis

Why is BRICS summit important for India? (GS Paper 2, International Organisation)

Why in news?

• The 15th edition of the BRICS summit is scheduled to be held in the city of Johannesburg in South Africa from August 22 to 24.
• The summit will be hosted at the Sandton Convention Centre (SCC) in Johannesburg, Gauteng.
• After the COVID-19 pandemic broke out, this will be the first in-person BRICS summit, which makes the gathering all the more crucial.

What is BRICS?

• In 2001, British economist Jim O’Neill of Goldman Sachs coined the term ‘BRIC’, standing for Brazil, Russia, India, and China from an investors’ interest perspective.
• Now, BRICS includes these five economies, representing 42% of the world’s population, 30% of the world’s territory, 23% of global GDP, and around 18% of world trade.
• An informal meeting of the grouping was held in 2006 among Russia, India, and China on the sidelines of the G8 Outreach Summit in Russia. The first formal meeting was in 2009, also in Russia. South Africa joined in 2010, expanding it to ‘BRICS’.

Why is the 15th BRICS summit important?

• This is the first in-person meeting since the Russian invasion of Ukraine in 2022, an event that has cast a long shadow not only over global stability, but food, fertilizer and fuel (energy) security.

• Given its composition, BRICS deliberations are perceived to carry a “counter-western” slant, and will be of importance as the U.S. and EU still hope to try and “isolate” Russia over the conflict.
• This is also the first summit since Luiz Inácio Lula da Silva Lula returned to power in Brazil, who represents a more socialist, anti-western politics than his predecessor President Bolsonaro.

What is in it for India?

• For India, this BRICS summit carries special importance. This is the first in-person summit since the military standoff with China at the Line of Actual Control began in 2020, and Prime Minister of India will come face to face with President Xi Jinping at the BRICS meet.
• While they have attended the Shanghai Cooperation Organisation (SCO) summit in Samarkand, and had a brief meeting at the G20 in Bali in 2022; at the BRICS summit they will be in a very small group of four (with President Putin attending virtually), and will have many opportunities to hold bilateral talks.
• Ahead of the summit, the 19th round of India-China Corps Commander Level Meeting resulted in a joint statement, seen as a positive sign ahead of a possible Modi-Xi engagement.
• This meeting would be significant in terms of resolving the LAC situation, where an estimated 1,00,000 soldiers stand at the boundary on either side.

G20 Summit:

• India will host the G20 summit in September and India want to ensure full attendance by the leaders, which include all BRICS members.
• In addition, India wants more cooperation from China and Russia that are blocking discussions on a common language for the Leader’s declaration to be released at the summit on September 9-10.

Participants:

• Apart from BRICS leaders, South Africa has invited all 55 members of the African Union (AU) to the event and about 20 other leaders from Asia, South America and small Island States who represent the Global South for sessions on the sidelines of the summit.
• The message from the invitations is a clear pitch for the developing world to come together on economic issues. In addition, many of the countries that are seeking to join the increasingly important grouping will be represented at leadership levels.

What’s the big item on the agenda?

• During the summit, the leaders of BRICS will confer among themselves, and also take part in the BRICS-Africa Outreach and BRICS Plus Dialogue. A major item on the agenda is on the expansion of BRICS.
• BRICS has produced some significant outcomes, like the New Development Bank, Contingency Reserve Arrangement for currency, an R&D centre for vaccines and others.
• More broadly, it is seen as an attractive alternative to the G-7 developed countries “club”. More than 40 countries have shown an interest in joining BRICS, and at least 19 countries have applied formally for membership.
• Of these, consensus appears to be developing around four countries: Argentina, Saudi Arabia, the UAE and Iran.

What else is expected to be discussed?

• BRICS leaders are also expected to take forward earlier talks on intra-BRICS trading in national currencies, although a much-touted plan pushing for a “BRICS currency” to challenge the dollar does not appear to be on the agenda.
• The Johannesburg Declaration will include language acceptable to all the countries on a number of global developments.
• In addition, South Africa which has chosen the theme “BRICS and Africa: Partnership for Mutually Accelerated Growth, Sustainable Development, and Inclusive Multilateralism” for the year, seeks to introduce initiatives in its priority areas,

1. including an equitable and just transition on climate change issues;
2. unlocking opportunities through the African Continental Free Trade Area; and
3. strengthening the meaningful participation of women in peace processes.

• India will also look out for language proposed by China, by far the biggest economy in the grouping, to promote China’s key initiatives like the Belt and Road Initiative, and the new Global Development Initiative (GDI) as part of an economy roadmap for BRICS.
• India had refused to sign onto an Economy Roadmap at the SCO meeting chaired by India in July 2023 for the same reasons.