BRICS is larger than the G7 in economic terms and in global reach, but the alliance is at a juncture of existential moment. Internally, Chinese hegemony imperils the group’s underpinning balance.
US President Donald Trump’s threat to impose tariffs and refusal to accept de-dollarisation make the BRICS future uncertain. India, being a founding member, has the critical balancing act of withstanding the bloc’s tilt towards anti-West posturing.
From Economic Hope to Global Power Bloc
BRICS began life as a Goldman Sachs-borne concept in 2001. Brazil, Russia, India, and China had constituted the initial bloc by 2006, with South Africa joining in 2010. Expansion in 2024 saw the group grow to 11 members. BRICS is cheered as a non-Western voice for global governance by its backers. But critics term it a Chinese initiative to supplant US-led institutions.
It also established its own financial instruments. The New Development Bank (NDB), which was launched in 2015, finances projects in developing nations and provides a counter to the World Bank and the IMF. BRICS has also supported Russia’s grain exchange and emerging technology joint ventures.
Bigger Than G7, Yet Deeply Divided
BRICS now surpasses G7 on purchasing power basis. But it is not the only problem it faces. Domestically, China and Russia wish to utilize it to economically confront the West, while supporting military conflict through the CRINK alliance with Iran and North Korea.
China accounts for 40% of BRICS GDP and is the host country of the NDB in Shanghai. Russia strongly supports China’s leadership. But India does not agree. New Delhi insists that BRICS is not a club against the West. It is a platform for emerging economies.
Last month, EAM S. Jaishankar emphasized India’s support to the global role of the US Dollar. “The dollar as reserve currency is the basis of international economic stability,” he said, dismissing dedollarisation.
Trump’s Red Line and Pressure from Outside
US President Donald Trump threatened BRICS members against substituting the dollar. Trump threatened 100% tariffs on nations headed in a direction of a BRICS currency. The threat is still active as Trump considers a second term and advances bold trade and foreign policy objectives.
India’s Key Role in Blocking a China Takeover
India has proactively employed its shared holding in the NDB to oppose its transformation into a Belt and Road Initiative instrument. It also demands transparent criteria for new BRICS members as well as transparent decision-making.
China researcher Anushka Saxena states India’s position as a “disruptor” in BRICS and SCO continues to be crucial. India keeps China and Russia from using these to become anti-Western platforms.
India, as a founding voice, is still critical in keeping BRICS development-oriented—and not dividing. As new members arrive and old rivalries heat up, India’s leadership may determine it’s true legacy.