Though BRICS may sound like yet another grouping of nations similar to ASEAN, G-20, SCO and SAARC, it has an important role to play in furthering the economic and trade interests of India.
What is BRICS ?
BRICS is a grouping of nations and an acronym for Brazil, Russia, India, China and South Africa. Originally the first four were grouped as “BRIC” (or “the BRICs”), before the induction of South Africa in 2010. All BRICS members are a part of G20. They are known for their significant influence on regional affairs.
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Though the term was coined in 2001 by then-chairman of Goldman Sachs Asset Management, Jim O’Neill, in his publication Building Better Global Economic BRICs, the four countries only met in September 2006 in New York City. The organisation encourages commercial, political and cultural cooperation between the BRICS nations.
Although India is the second-largest economy in the grouping behind China, its per capita income ($1,750) is the lowest.
The grouping has survived for over 10 years despite what may seem like intuitive contradiction among its members – autocratic governments in China and Russia, rivalry and border disputes between China and India, South Africa and India competing for permanent membership of UN Security Council. The New Development Bank set up in 2014 is a big achievement of BRICS.
What is expected from the BRICS summit this time?
Global trade wars triggered by the actions of the US President Donald Trump form the backdrop of the summit. The five countries, especially China, which has been the key target of US actions, are likely to protest the protectionist measures of the Trump administration.
India is keen to set up a BRICS rating agency, as it feels that the methodology of S&P, Fitch and Moody’s is biased against developing nations. A feasibility study was presented at the 2016 meet. Modi has also called for a BRICS counterterrorism strategy, including joint action on money laundering, terrorist financing and cyberspace.
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