Why In News?
On 1st January 2024, Five nations Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates joined BRICS as new full members. BRICS has now become an organization of 10 countries.
The decision was made to include six countries Egypt, Ethiopia, Iran, Saudi Arabia, United Arab Emirates, and Argentina, during the 15th BRICS summit held in Johannesburg as new members of the group. But Argentina’s new President, Javier Mili, decided to withdraw his country’s plan to join BRICS.
About the BRICS group
- Full form of BRICS – Brazil(B), Russia(R), India(I), China(C) and South Africa(S)
- Economist Jim O’Neill coined the term BRIC in 2001.
- Grouping was formalized during the first BRIC Foreign Ministers’ Meeting 2006. The first BRIC summit was held in Yekaterinburg, Russia in 2009.
- This group adopted the acronym BRICS when South Africa joined in 2010.
- Establishment of the New Development Bank (NDB) held in 2014 during the Sixth BRICS Summit in Fortaleza, Brazil
Highlights of the 15th BRICS Summit
- The 15th BRICS summit was held in Johannesburg, South Africa in August 2023.
- The theme of the 15th BRICS Summit – is “BRICS and Africa: Partnership for Mutually Accelerated Growth, Sustainable Development and Inclusive Multilateralism.”
- South African President Cyril Ramaphosa presided over the conference.
- Russia’s tenure as Chairman of BRICS begins from January 1, 2024.
- Russia will act as the Chairman of BRICS for a full year.
The significance of BRICS for India
The significance of BRICS for India lies in various economic, political, and strategic aspects:
- Economic Cooperation
- Market Access:
- Diversification of Economic Partnerships:
- Political Influence:
- Development Initiatives:
- Financial Cooperation:
- Global Governance Reform:
- Technological Collaboration:
- Energy Security:
- Multilateralism and Diplomacy:
Challenges
Despite the potential benefits of BRICS, India faces several challenges within the BRICS. These challenges include:
- Divergent National Interests:
- Economic Competition:
- Border Disputes: Between India and China
- Trade Imbalances: Trade imbalances among BRICS nations, particularly India and China, can be a challenge.
- Political Differences: Member countries divergent political ideologies and approaches to global governance like China is Communist while India is Democratic Nation
- Strategic Alignment:
- Global Governance Reforms:
- Infrastructure Development: The New Development Bank (NDB), established by BRICS, aims to fund infrastructure projects. However, India faces challenges in ensuring effective utilization of these funds for its specific infrastructure needs.
- Environmental Concerns:
- Human Rights and Democratic Values: India’s commitment to democratic principles and human rights may differ from some other BRICS members. Ex China, Russia
- Coordination on Global Issues: While BRICS is intended to coordinate on global challenges but differing stances on issues like climate change, terrorism, and global health may hinder effective collaboration within the grouping