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The Print
25-07-2025
- Business
- The Print
India uses BRICS to push reforms—not to challenge the US
These nations are now challenging the hegemony of the West. Calls for de-dollarisation—reducing reliance on the US dollar in trade and finance— are becoming prominent, posing a threat to America's financial and geopolitical dominance. It gives China and Russia (and India too) a louder voice on the world stage. It fuels global economic realignment away from the dollar and Western institutions, pointing to a multipolar world order—something that US President Donald Trump doesn't support. Although forming groups of countries to promote cooperation is common globally, BRICS is more than a conventional grouping. It is a group of countries challenging the clout of the developed powers, particularly the US and European nations. In 2010, the first five members—Brazil, Russia, India, China, and South Africa—constituted 18 per cent of the global GDP. Their collective share has risen to 26.5 percent in 2025. The latest edition of the BRICS Summit was significant because all 10 member countries participated. It included Iran, Egypt, Ethiopia, and the UAE, which attended as member states for the first time at the 2024 summit in Russia, and Indonesia, which joined in early 2025 as the first Southeast Asian country in the bloc. With its expansion, the group is now known as BRICS Plus—a term first used at the 2024 summit. Trump's worries with BRICS The recent expansion of BRICS, with five new members joining, has increased the worries of the West, particularly the US. And without mincing words, Trump has started expressing his unhappiness over the developments happening in BRICS. Here are the key reasons why Trump opposes BRICS: The primary reason is that both the original members (Brazil, Russia, India, China, South Africa) and new entrants like Saudi Arabia, UAE, Egypt, Iran, and Ethiopia are openly discussing reducing reliance on the US dollar in trade and finance. Trump's long-standing 'America First' stance makes any move away from the dollar a direct challenge to U.S. economic influence and its ability to enforce sanctions. The second point that irks Trump is BRICS' geopolitical opposition to the West. BRICS increasingly positions itself as a counterweight to Western institutions like the G7, the International Monetary Fund (IMF), and the World Bank. The deepening ties between China and Russia within BRICS are seen as part of a broader anti-Western alignment. Third, Trump has consistently taken a hardline stance on China, through trade wars, tariffs, tech and investment restrictions, etc. BRICS giving China a leadership platform to challenge the US on the global stage agitates him. He views BRICS as a vehicle for China's global expansion under the guise of multipolarity. Fourth, the inclusion of Saudi Arabia and Iran gives BRICS influence over global energy markets. There is growing potential for oil trade to be conducted in non-dollar currencies (e.g., yuan or BRICS currency), which would weaken the petrodollar system—a critical pillar of US global economic power. Fifth, Trump perceives BRICS expansion as a sign that the 'Global South' is drifting away from Western influence, forming its own independent bloc. This runs contrary to Trump's vision of negotiating 'from strength,' where US dominance is unquestioned. Sixth, Trump views global influence in zero-sum terms. Any rise of a non-Western grouping that excludes the US is seen as a personal and national affront. BRICS summits that propose alternative visions for world order without US involvement are perceived as a threat to 'American prestige'—something Trump values highly. He has threatened to impose higher tariffs on countries siding with the BRICS. He has already announced the imposition of 50 per cent tariffs on Brazil. Also read: BRICS nations resist 'anti-American' label after Trump tariff threat India's pragmatic approach Although India is a member of BRICS, its approach is more nuanced, balanced, and pragmatic compared to other members. India's stance is shaped by its national interests, strategic autonomy, and growing global ambitions. While it has been trying to promote its economic interests by promoting international trade and settlements in rupee—thereby reducing dependence on dollar—India is not anti-dollar. It supports a broader effort to diversify the global financial system, reduce dependency on a single currency, and promote a multipolar world order. India has initiated bilateral trade in rupees with countries such as Russia, the UAE, Sri Lanka, and Mauritius to reduce its forex outflows. So far, more than 20 countries have opened Vostro accounts to facilitate trade settlement in domestic currencies. India backs BRICS to create alternative payment mechanisms, like using local currencies or discussions around a potential BRICS currency, but remains cautious about their practicality. India understands the dominance of the dollar in global trade and finance and has not called for its outright replacement (or de-dollarisation). Instead, it favors the coexistence of multiple reserve currencies (like the euro, the yuan, and the rupee). India does not see BRICS as an anti-US bloc. It views the grouping as a platform for reforming global institutions, not for confrontation. India supports a world with multiple power centres, where the voices of emerging economies are better represented. India has been pleading for long to bring reforms in institutions like the United Nations, IMF, and World Bank, which it believes are West-dominated and don't reflect current global realities. In this context, under India's G20 presidency, an expert group was formed to prepare a report on reforms for global financial institutions. This group was co-convened by economists Larry Summers and NK Singh. Their report focused on strengthening Multilateral Development Banks (MDBs). Guided by its own objectives, India uses BRICS to promote cooperation in technology, finance, infrastructure, and sustainable development. If the US is irked by Chinese dominance in BRICS, India too remains wary of China's influence in the bloc and rejects any behaviour that undermines its sovereignty or aligns too closely with Chinese interests. At the global level, India's balanced approach is to serve its national objectives and achieve its goals of protecting its national sovereignty. By promoting international settlements in Indian currency, reducing dependence on dollars, it's also trying to stop the de-weaponisation of dollars. India is promoting self-reliance through 'Aatmanirbhar Bharat', and discourages efforts of others (both the West and China) to weaponise global value chains. By promoting digital rupee payments, India is also trying to de-weaponise payment systems. These efforts protect our own national interest by not allowing others to dominate India. In the past, India has been able to demonstrate its clout by purchasing oil from Russia and Iran, promoting digital payments and pushing for reforms in global institutions at international fora. It's interesting that the US has not objected to these moves—perhaps looking at India as a force to balance the dominance of other countries, including China. Ashwani Mahajan is a professor at PGDAV College, University of Delhi. He tweets @ashwani_mahajan. Views are personal. (Edited by Ratan Priya)
Straits Times
09-07-2025
- Business
- Straits Times
Armenia, Azerbaijan leaders to meet Thursday in Abu Dhabi on peace plan
Sign up now: Get ST's newsletters delivered to your inbox FILE PHOTO: Azerbaijan's President Ilham Aliyev and Armenia's Prime Minister Nikol Pashinyan attend a plenary session in the outreach/BRICS Plus format at the BRICS summit in Kazan, Russia October 24, 2024. REUTERS/Maxim Shemetov/Pool/File Photo BAKU/TBILISI - Armenian Prime Minister Nikol Pashinyan and Azerbaijani President Ilham Aliyev will meet in the United Arab Emirates on Thursday, their governments said, to work to finalise a peace agreement after nearly four decades of conflict. The South Caucasus countries have fought a series of wars since the late 1980s when Nagorno-Karabakh, a region in Azerbaijan that had a mostly ethnic-Armenian population at the time, broke away from Azerbaijan with support from Armenia. In a major breakthrough, the countries said in March they had finalised a draft peace deal. But the timeline for signing it remains uncertain and ceasefire violations along their closed and heavily militarised border surged soon after the draft deal was announced. There have been no reported violations recently. The meeting in Abu Dhabi will be the two leaders' first formal encounter since they agreed on the draft text of the peace agreement. Pashinyan, in a rare bilateral visit to Turkey last month, met President Tayyip Erdogan, who said he would support Yerevan's peace efforts with Baku. The United States has also recently signalled its hopes for a deal. Peace talks began after Azerbaijan recaptured Karabakh in September 2023, prompting almost all of the territory's 100,000 Armenians to flee to Armenia. In a potential stumbling block to a deal, Azerbaijan has said it wants Armenia to change its constitution, which it says makes implicit claims to its territory. Top stories Swipe. Select. Stay informed. Singapore Singapore to hire more than 1,000 new educators annually in the next few years, up from 700 Singapore COE prices rise for all categories Asia Malaysia confirms existence of document central to ex-PM Najib's house arrest bid, say reports Singapore Man who killed cats by throwing them off HDB blocks has jail term doubled to 27 months Singapore $43k fine for undischarged bankrupt doctor who failed to disclose assets worth over $4m Singapore Female primary school teacher charged over alleged sex acts with underage male student Singapore Goodbye fraudsters? Dating app Coffee Meets Bagel rolls out identity verification Asia Amid handshakes and familiar friends, Asean navigates tariffs and tension in KL Yerevan denies this, but Pashinyan has repeatedly stressed - most recently this week - that the South Caucasus country's founding charter needs to be updated. Azerbaijan also asked for a transport corridor through Armenia, linking the bulk of its territory to Nakhchivan, an Azerbaijani enclave that borders Baku's ally Turkey. Pashinyan and Aliyev last met in May on the sidelines of the European Political Community summit in Tirana. They discussed the peace process, but their meeting - a chat around a coffee table - was informal. REUTERS
Malaysia Sun
04-07-2025
- Business
- Malaysia Sun
How Xi empowers Global South in int'l governance
BEIJING, July 4 (Xinhua) -- As Chinese President Xi Jinping once observed, in the face of global changes of the century, pursuing modernization and working for a more just and equitable international order are the sacred historic missions of Global South countries. Xi described the BRICS countries as "leading members of the Global South," calling for building BRICS into "a primary channel for strengthening solidarity and cooperation among Global South nations and a vanguard for advancing global governance reform." Since becoming Chinese president in 2013, Xi has always been a steadfast champion of BRICS cooperation. In Xiamen, he advocated for the "BRICS Plus" program at the 2017 BRICS summit, calling for more active participation from other emerging markets and developing nations. He played a crucial role in propelling the BRICS' historic expansion in 2023, ushering in the era of greater BRICS cooperation. Effective coordination between BRICS members and other countries in the Global South has been adding more bricks to the global governance architecture. The New Development Bank exemplifies this effort. Xi said the bank serves as "an important emerging force in the international financial system," which should work to "make the international financial system fairer and more equitable and effectively enhance the representation and say of emerging markets and developing countries." Over the years, China, under Xi's leadership, has taken concrete steps to advocate for developing countries, help Global South countries enhance their representation and voice in international governance, and promote a more just and equitable international order. At the 2022 G20 summit in Bali, Indonesia, China took the lead in supporting the African Union (AU)'s membership in the G20. In their meeting on the sidelines of the summit, then Senegalese President Macky Sall, who was also the AU chairperson that year, thanked Xi for being the first to publicly support the AU's G20 membership. The global leadership today remains lopsided, and rebalancing this skewed system is a shared imperative for both the Global North and South, said Paolo Magri, managing director and chair of the advisory board of the Italian Institute for International Political Studies, a think tank. "Global South countries marching together toward modernization is monumental in world history and unprecedented in human civilization," Xi said at the "BRICS Plus" Dialogue in Kazan, Russia, last year, while acknowledging that "the road to prosperity for the Global South will not be straight." "No matter how the international landscape evolves, we in China will always keep the Global South in our heart, and maintain our roots in the Global South," Xi pledged.
The Wire
02-07-2025
- Politics
- The Wire
Civilization Series brings BRICS together in Rio
RIO DE JANEIRO, July 1, 2025 /PRNewswire/ -- The BRICS Edition of the Dialogue of Civilizations series was held on Friday at Rio de Janeiro State University in Brazil. The event welcomed over 300 participants from China, Brazil, Russia, South Africa and India. With the theme "Strengthening Cultural Ties Among BRICS Nations Empowering a Brighter Future for the Global South", the event was co-hosted by the State Council Information Office of China and Brazil's Legislative Assembly of the State of Rio de Janeiro. The China Intercontinental Communication Center(CICC), Rio de Janeiro State University, the information office of the Guangdong provincial government and Nanfang Media Group co-organized the organization. A representative of the State Council Information Office of China emphasized in his opening remarks that people-to-people exchanges among BRICS countries are not only dialogue across borders and cultures, but also powerful examples of the solidarity and shared development among the Global South. As the broader BRICS cooperation enters a new phase, sustained cultural exchange and mutual learning are vital to ensuring that BRICS Plus collaboration becomes more meaningful, inclusive and enduring, he says. Tia Ju, vice-president of the Legislative Assembly of the State of Rio de Janeiro, noted that today's world faces challenges like climate change, social inequality and geopolitical conflict, BRICS countries represent the voice of the Global South. In this context, deepening civilizational dialogue is significant greatly. Culture brings people together and builds understanding. "When we respect each other's differences and celebrate global solidarity, we help lay the foundation for a sustainable future built on peace, empathy and shared prosperity," she says. The event opened with a BRICS Pop-Songs Medley performed by the Copacabana Fort Orchestra. BRICS athletes, business leaders and young professionals shared stories from their personal journeys, showcasing how the BRICS nations people strive for common development through resilience, unity and collaboration. A series of themed exhibitions were held alongside the main program, including exhibitions The Declaration of Civilization: A Beautiful Scroll Painting of a Community with a Shared Future for Mankind I, The Warmth of the World: BRICS Lifestyle Photo Exhibition, Exhibition of Graphic Seals: Mutual Learning Among Civilizations with A Shared World Vision (BRICS Edition), See you in Guangdong: Lingnan Cultural Innovation Exhibition, Essence of China: Exploring the Culture of Traditional Chinese Medicine, apart from an interactive experience project of craftsmanship of the BRICS countries. Photo - (Disclaimer: The above press release comes to you under an arrangement with PRNewswire and PTI takes no editorial responsibility for the same.).
The Wire
10-06-2025
- Business
- The Wire
India, Trump's Tariffs and the Future of BRICS
Brazilian president Lula de Silva, Chinese President Xi Jinping, South Africa's Cyril Ramaphosa, Indian Prime Minister Narendra Modi and Russian foreign minister Sergey Lavrov at the BRICS summit in Johannesburg, South Africa, August 22, 2023. Photo: Twitter/@MID_RF Real journalism holds power accountable Since 2015, The Wire has done just that. But we can continue only with your support. Contribute Now The BRICS alliance (Brazil, Russia, India, China, South Africa) and the newly expanded BRICS Plus nations – Egypt, Ethiopia, Iran, UAE, Indonesia – stands as a formidable voice for the Global South, representing 31.5% of global GDP and over 40% of the world's population. India's pivotal role in this coalition is not merely economic but a testament to its vision for a multipolar world order rooted in equity, sovereignty and mutual prosperity. Recent remarks by US President Donald Trump and Commerce Secretary Howard Lutnick – threatening 100% tariffs on nations exploring alternatives to the US dollar and urging India to reconsider its BRICS membership – have ignited global discourse. At this juncture, India need to remain steadfast, leveraging its strategic autonomy to balance global partnerships while advancing its economic ambitions. Trump's tariff threats Since November 2024, President Trump has cautioned BRICS nations against de-dollarisation, warning of crippling tariffs if they pursue a common currency or an alternative financial system. The US dollar's dominance in over 90% of global transactions underscores Washington's unease, particularly as Russia and Iran, constrained by SWIFT sanctions, advocate for local currency trade. India's response, articulated by Union external affairs minister S. Jaishankar, reflects pragmatism. India is not leading de-dollarisation but seeks practical 'workarounds' to sustain trade with sanctioned partners, such as Russia for critical oil imports. India's trade with the US is valued at $120 billion in 2024, with IT services, pharmaceuticals and textiles as key exports. Yet, BRICS offers a vital platform to diversify economic partnerships, reducing reliance on any single market and insulating India from external pressures. This strategic diversification is not a rejection of the US, but a calculated step toward resilience in a volatile global landscape. The strategic imperative of staying in BRICS India's commitment to BRICS embodies its pursuit of strategic autonomy in a multipolar world, prioritising economic diversification and global cooperation over geopolitical rivalries. The bloc's 2024-2025 expansion to include Egypt, Ethiopia, Iran, UAE and Indonesia amplifies India's economic diplomacy. For instance, India's construction sector (7.4% growth in 2025) can drive infrastructure projects in Egypt, while its textile expertise can bolster Ethiopia's burgeoning garment industry. In the UAE, BRICS Chamber of Commerce & Industry's (CCI's) trade corridors have catalysed regional fintech and renewable energy partnerships, leveraging India's leadership in UPI and green hydrogen ambitions. These collaborations not only diversify India's trade but also create a buffer against potential tariff disruptions from the US tariffs. BRICS also serves as a platform to tackle pressing global challenges, from climate change to digital transformation. By championing local currency trade – such as India's rupee-based settlements with Russia since 2022 – BRICS CCI ensures trade continuity without directly challenging the dollar's dominance. This pragmatic approach underscores India's ability to navigate complex global dynamics while advancing its economic interests. Navigating the challenge India's response to US tariff threats must balance its deep economic ties with Washington while reinforcing its BRICS commitments. This delicate balancing act requires a multifaceted strategy: Deepen US-India Economic Engagement: India should pursue reciprocal trade agreements, building on past negotiations for a limited trade deal. India can attract US investment in high-tech sectors like semiconductors and clean energy, fostering mutual trust and reducing tariff risks. Amplify BRICS Trade Platforms: Initiatives like the BRICS Startup Forum and MSME Accelerator Program can drive transformative deals in renewables with the UAE, pharmaceuticals with South Africa, and agrotech with Brazil. These platforms showcase BRICS' economic value, fostering collaboration without escalating currency disputes. Advance Pragmatic Currency Solutions: India's rupee-based trade mechanisms offer a blueprint for BRICS nations to ensure trade resilience. By scaling these systems, India can facilitate seamless commerce while sidestepping provocative moves toward a common BRICS currency. Leverage BRICS Plus Opportunities: The expanded BRICS bloc unlocks new markets for India. Intensifying infrastructure deals with Egypt, textile exports to Ethiopia, and energy partnerships with Iran reduces India's dependence on traditional markets, enhancing its economic agility. Strengthen Diplomatic Messaging: India's leadership must consistently emphasise that BRICS is a platform for cooperation, not confrontation. By positioning itself as a bridge between the Global South and North, India can defuse tensions while amplifying its global influence. India's Path Forward The US tariff threat highlights the complexities of a shifting global order, but it also underscores India's unique position as a global leader. With a $4.1 trillion economy in 2025, India's economic resilience is undeniable. Its diversified trade portfolio –spanning BRICS, ASEAN, and Western markets – equips it to withstand external pressures. India must impress upon the US that BRICS is not a rejection of the West but a bold reaffirmation of a fair, multipolar world, where cooperation triumphs over coercion. By deepening BRICS partnerships, scaling innovative trade mechanisms, and maintaining robust dialogue with the US, India can navigate this challenge with strategic resolve. If India wants to emerge as a champion of the Global South, it need not merely respond to global shifts, it ought to shape them. The author is Chairman of the BRICS Chamber of Commerce and Industry (BRICS CCI). The Wire is now on WhatsApp. Follow our channel for sharp analysis and opinions on the latest developments.
