As leaders of the expanded BRICS group convene in Delhi, the economic and geopolitical bloc faces internal divisions that may hinder a unified stance against Washington. Former U.S. President Donald Trump has repeatedly voiced strong opposition to BRICS's efforts to reduce global trade's reliance on the U.S. dollar, a stance that looms over the summit.
Trump has warned that BRICS nations could face "100% tariffs" if they pursue alternative currencies or measures to weaken the dollar's global standing. This rhetoric highlights the ongoing tension between the bloc and the United States, particularly regarding financial policy. "You've added a number of members that don't get along," Trump has stated, characterizing the challenge for host India as unifying countries with diverse global perspectives.
Despite these challenges, BRICS has seen significant growth in geopolitical and economic influence over the past decade. The group now represents 49% of the world's population, 40% of global GDP, and 26% of international trade. Its tangible achievements include the New Development Bank, which has funded billions in infrastructure and development projects, primarily in the global South. Additionally, a $100 billion contingency reserve arrangement exists to assist members facing financial crises, though it has yet to be tested.
The leaders are expected to discuss facilitating cross-border payments in local currencies, a move of particular interest to countries like Russia and Iran, which are subject to U.S. sanctions. BRICS also aims to position itself as a collective voice for developing nations, advocating for reforms in international institutions such as the United Nations, the International Monetary Fund, and the World Bank. These institutions are perceived by many developing countries as not accurately reflecting the current global order.
For India, hosting the summit presents an opportunity to bolster its leadership aspirations within the Global South. Delhi's foreign policy priorities, including multilateralism, a multipolar world, increased representation for developing countries, and freer global trade, align with BRICS's broader agenda. However, India must navigate China's significant influence within the bloc and its stronger presence in many developing regions.
While India's emphasis on becoming a "leader or a voice of the Global South" is clear, its efforts to deepen ties in Africa and Latin America have reportedly had "limited success" compared to China's outreach. The expanded BRICS grouping offers India a chance to strengthen relationships with countries like Ethiopia, Brazil, and Indonesia, thereby enhancing its profile across Africa and Latin America. The summit's success will partly depend on its ability to present a cohesive front while managing the diverse interests and geopolitical alignments of its member states.