07-07-2025
BRICS signals strong Global South, less dependence on West
Written by Soumya Bhowmick
Gathered in Rio de Janeiro on July 6-7, leaders of Brazil, Russia, India, China, and South Africa issued a declaration that signals perhaps the most ambitious turn yet in BRICS's evolving journey. At the heart of the BRICS Rio Declaration 2025 lies the conviction that existing international institutions — from the UN Security Council to the IMF and World Bank — no longer reflect the geopolitical and economic weight of emerging economies. BRICS leaders seek reforms that grant the developing world a greater voice, aiming not to dismantle the global order, but to modernise it for a multipolar reality.
Even before its latest expansion, the bloc collectively represented over 40 per cent of the world's population and a significant chunk of global GDP. With the addition of new members such as Iran, Egypt, Ethiopia, and the UAE, BRICS is evolving into an even more formidable economic coalition. The inclusion of oil giants and mineral-rich nations enhances its leverage over energy markets and critical supply chains — a clear signal that the Global South aims to shape, rather than react to, global economic forces.
The Rio Declaration also placed a strong emphasis on inclusive growth, sustainable development, and digital cooperation. BRICS leaders championed climate action that doesn't stifle development, stressed the importance of women's digital inclusion, and set new targets for knowledge sharing in AI, critical minerals, and green technology. Looking ahead to COP30 in November, also hosted by Brazil, the BRICS nations endorsed the Tropical Forest Forever Fund (TFFF) as a promising tool to secure sustained funding for protecting tropical forests. 'With the collective scale of the BRICS, we will combat the climate crisis while making our economies stronger and fairer,' the declaration affirms.
Reducing dependence on the West is a central thread in the BRICS 2025 vision. The bloc is pushing initiatives such as trading in local currencies, integrating payment systems outside dollar-dominated networks, and strengthening the New Development Bank (NDB) to serve as an alternative source of funding. Proposals for a BRICS cross-border payments system and the expansion of the Contingent Reserve Arrangement also reflect a desire for financial resilience, offering a cushion against Western sanctions and economic volatility.
Amid this surge of BRICS ambition, India has emerged as both a strong advocate for the Global South and a cautious voice determined to keep BRICS from becoming overtly confrontational toward the West. On the one hand, BRICS offers New Delhi a powerful platform to amplify its demands for UN reform, greater representation in global governance, and development finance tailored to emerging economies. The group's solidarity on counterterrorism (it condemned the Pahalgam terror attack), infrastructure finance, and digital cooperation aligns closely with India's national interests.
On the other hand, India's deepening ties with the West — particularly the United States, Europe, and Japan — shape its strategic calculus. New Delhi has grown increasingly intertwined with Western partners, sharing technology, engaging in defence cooperation, and conducting goods trade worth approximately $130 billion with the US alone in 2024. In areas such as semiconductor manufacturing, renewable energy, and digital infrastructure, India views the West as a vital partner in bolstering its economic growth and strategic autonomy.
Additionally, India's complex relationship with China remains a significant undercurrent within BRICS, marked by lingering mistrust despite recent diplomatic overtures following their 2020 border clashes. While bilateral trade has surged, India's substantial trade deficit highlights economic asymmetry and dependence on Chinese goods, prompting New Delhi to tighten scrutiny in sensitive sectors, such as technology.
Strategic tensions extend beyond commerce, with China's ties to Pakistan, territorial disputes over Arunachal Pradesh, and Beijing's regional infrastructure projects fuelling India's wariness of China's influence both bilaterally and within BRICS. Meanwhile, Chinese President Xi Jinping's absence from the Rio summit, along with the diverse geopolitical stakes of new members such as Iran and Saudi Arabia, highlights the internal complexities and delicate balance that BRICS must navigate to maintain cohesion.
The Rio summit concluded with a strong sense of purpose, as BRICS leaders unveiled initiatives such as expanded financing tools and digital cooperation frameworks aimed at giving the Global South greater agency over its future. Yet significant challenges remain in turning these plans into reality, as ambitions such as trading in local currencies, building alternative financial networks, and undertaking new infrastructure projects require not only political consensus but also technical capacity and confidence among members.
Finally, as India prepares to chair BRICS in 2026, its diplomatic skills will be crucial in steering the bloc toward tangible outcomes rather than ideological posturing, aiming to transform BRICS into a practical engine for development, with a focus on projects spanning African infrastructure to digital public goods. For India, the challenge lies in harmonising its multipolar aspirations with its deep ties to the West, ensuring that BRICS serves as a bridge to a fairer world rather than a divider in global geopolitics.
The writer is a Fellow and Lead, World Economies and Sustainability at the Centre for New Economic Diplomacy (CNED) at Observer Research Foundation (ORF)
