India’s Role in the BRICS Economic Realignment

As the global economy enters a multipolar era, emerging powers are increasingly asserting their presence on the world stage. One of the most prominent alliances in this context is BRICS—a coalition of five major emerging economies: Brazil, Russia, India, China, and South Africa, with recent expansion plans including new members like Iran, Egypt, Ethiopia, and the UAE. India, as the world’s most populous country and fastest-growing large economy, plays a pivotal role in this BRICS economic realignment.

With shifting geopolitical dynamics, de-dollarization efforts, energy transitions, and South-South cooperation gaining momentum, India’s influence within BRICS is more important than ever. This blog explores India’s strategic role, key economic contributions, and its vision in shaping the future of BRICS.

BRICS: From Concept to Realignment

BRICS began as a Goldman Sachs acronym in 2001 and evolved into a formal alliance by 2009. The group was formed with the goal of challenging Western-dominated global institutions such as the IMF and World Bank, and of amplifying the voice of developing economies.

As of 2025, BRICS represents:

• Over 40% of the world’s population

• Nearly 30% of global GDP (PPP terms)

• A growing share of global trade and investment flows

Read more: Official BRICS Website – https://brics2023.gov.br

In recent years, the bloc has undergone realignment with a broader push toward economic multipolarity, the launch of a BRICS currency discussion, and expansion into new membership to amplify its global relevance.

India’s Economic Strengths within BRICS

India’s role in BRICS is distinct, owing to its democratic governance, strong service-led economy, and neutral geopolitical stance. Here’s how India contributes uniquely to BRICS:

1. Fastest-Growing Major Economy

According to the IMF World Economic Outlook (2024), India is expected to grow at 6.8% in 2025, outperforming all other BRICS members. The country’s $3.7 trillion GDP (nominal) is poised to overtake Germany in the coming years, making it the third-largest economy by 2030.

• India’s digital economy, fintech adoption, and startup ecosystem make it a global innovation hub.

• The country is a net exporter of services, unlike other BRICS nations that are heavily reliant on commodities.

2. Champion of South-South Cooperation

India advocates for equitable development, capacity building, and technology sharing among Global South countries.

Through initiatives like:

• India-Africa Forum Summit

• Development and Technical Cooperation via ITEC

• Vaccine Maitri program during COVID-19

India has positioned itself as a trusted development partner, not just a strategic power.

Related: India’s Role in Global South Initiatives

3. Push for Multilateral Reform

India has consistently called for reform in global institutions like the UN Security Council, IMF, and WTO.

At recent BRICS summits, India has proposed:

• Greater voting rights for developing economies in global financial institutions

• A stronger say for the Global South in shaping climate finance and trade rules

• Increased use of local currencies in trade to reduce dependency on the US dollar

This makes India an intellectual and diplomatic force within BRICS realignment.

India’s Trade and Investment Links with BRICS Nations

India’s trade with BRICS countries has grown significantly, crossing $160 billion in 2023, according to the Ministry of Commerce and Industry.

Notably, India has diversified oil imports from Russia, now its largest crude oil supplier. The India-Russia rupee-ruble payment mechanism is a crucial experiment in local currency trade.

Read more: India-Russia Energy Ties

India is also pushing investment diplomacy, with Indian firms expanding into African and South American BRICS countries in sectors like IT, pharma, and agri-tech.

Strategic BRICS Initiatives Where India Leads

1. New Development Bank (NDB)

Headquartered in Shanghai, the NDB was created by BRICS to offer development finance alternatives to the World Bank and IMF.

India was one of the founding members and actively funds projects in renewable energy, urban infrastructure, and transport, particularly in emerging markets.

Source: New Development Bank

2. BRICS Innovation Network

India has taken the lead in tech innovation and digital public infrastructure among BRICS countries.

Initiatives like:

• UPI (Unified Payments Interface)

• Aadhaar (digital identity)

• ONDC (Open Network for Digital Commerce)

are being considered for adoption or adaptation by other BRICS partners to enable inclusive digital economies.

3. Space and Defense Collaboration

India has also proposed greater cooperation in space technology, climate research, and cyber defense within BRICS. This could involve satellite launches for development purposes and disaster monitoring.

BRICS Expansion and India’s Stance

With BRICS admitting six new countries—Argentina (prior to reversal), Egypt, Iran, Ethiopia, Saudi Arabia, and the UAE—India is cautiously supportive.

While it welcomes multipolarity, India has emphasized:

• Consensus-based admission criteria

• Maintaining the non-aligned, non-Western character of BRICS

• Ensuring BRICS doesn’t become a China-dominated geopolitical bloc

This balanced approach positions India as a moderate stabilizer within the group.

Challenges Ahead

Despite its growing stature, India faces key challenges in BRICS:

• Geopolitical tensions with China, especially after the 2020 Galwan clash

• Trade imbalances, particularly with Chinese imports flooding Indian markets

• Different political ideologies across member states

• Global skepticism about BRICS currency plans

India’s challenge is to navigate these differences while continuing to promote a cooperative, inclusive, and development-centric agenda.

Conclusion: India as a Pillar of BRICS 2.0

India’s strategic vision, economic resilience, and commitment to multilateralism make it an indispensable pillar in the BRICS realignment. As BRICS evolves into a more expansive and influential alliance, India will shape its trajectory across areas like:

• Trade de-dollarization and alternative payment systems

• Green infrastructure and climate diplomacy

• Digital public goods and technology sharing

• Global governance reform

For businesses and investors, India’s central role in BRICS opens up new corridors of trade, investment, and innovation across Asia, Africa, and Latin America.

To explore how to partner with local agents for cross-border trade or investment across BRICS countries, visit:
👉 https://india-agent.com