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OPINION SEPTEMBER 08, 2023 | The Indian Eye 12

ria and procedures for accession.
The 2023 summit explored the
BRICS’ expansion, with over 40
countries expressing interest and 23
formally applying for membership.
After deliberations, the summit invit-
ed six countries—Argentina, Egypt,
Ethiopia, Iran, Saudi Arabia and
the UAE—to become full members
of BRICS from 1 January 2024. The
expansion significantly enhances the
economic weight of BRICS and in-
creases its envisaged role as a geopo-
litical alternative to global institutions
dominated by the West. The enlarged
grouping will account for 46.5 per
cent of the world population and
about 30 per cent of global GDP.
The enlarged group is also poised
to assume a more significant position,
primarily driven by the inclusion of
Saudi Arabia, UAE and Iran. These
three countries contribute 12.9, 4.3
and 4.1 per cent of global oil produc- Prime Minister Narendra Modi participates in the BRICS-Africa Outreach and BRICS Plus oping nations, advocating for global
tion respectively. Their membership Dialogue during the 15th BRICS Summit, in Johannesburg, South Africa (ANI) governance reform, and fostering
in BRICS will increase the group’s economic growth, remain significant.
share of global oil production from This marks a promising era as BRICS
20.4 per cent to 43.1 per cent. ities arising from excessive reliance BRICS and the Emerging steps into a new phase of global in-
The enlarged BRICS will also on the US dollar and to mitigate the fluence and collaboration. The broad
control over 30 per cent of the global risks posed by sanctions. The dimin- World Order impacts of BRICS enlargement, from
production of natural gas. Similarly, ishing prominence of the US dollar he BRICS has emerged as a boosted economic clout to diversified
expansion will grow the group’s share in BRICS trade settlements under- key player in reshaping the energy tactics, highlight the group’s
of global exports to 25.1 per cent, up scores this collective aspiration, illus- Tglobal order. It provides a proactive stance amid global chaos.
from 18 per cent. trated by the Russia–China bilateral platform to address inequalities and India’s participation in BRICS
trade settlement in the dollar, declin- Western dominance in global gov- aligns with pursuing strategic autono-
BRICS Currency and De- ing from nearly 90 per cent in 2015 ernance. With an ambitious agenda my and geopolitical equilibrium. The
Dollarization to 46 per cent in 2020. To actualize that mirrors their growing influence, group acts as a platform for India to
de-dollarization, cross-border pay- BRICS nations aim to create a multi- advocate Global South solidarity,
he other important topic ment mechanisms employing local polar world order. Their emphasis on multi-polarity, reformed multilater-
during the 15th Summit was currencies have gained momentum, cooperation over unilateralism offers alism and engage as a rule-maker.
Tthe proposal for a BRICS com- exemplified by initiatives like BRICS an alternative vision to the traditional Within BRICS, India takes the lead
mon currency. However, in contrast Pay and bilateral local currency set- power dynamics. As a group of emerg- in combating terrorism. Furthermore,
to the discourse on BRICS expan- tlement systems. ing economies, BRICS advocates for BRICS’s climate change objectives
sion, this proposition encountered a On the other hand, USD is the a more inclusive and equitable global align closely with India’s interests.
restrained level of endorsement from most preferred currency for glob- system that accommodates diverse However, India’s engagement with-
within the BRICS leadership. The al export invoicing, including in interests. BRICS aims to establish in BRICS presents formidable chal-
group’s divergence of opinions un- intra-BRICS transactions. For in- a multipolar world order challeng- lenges as well. Preventing the bloc
derscored the nuanced nature of the stance, China is Brazil’s largest trad- ing existing power dynamics while from morphing into an overtly an-
discussions. Brazil emerged as a pro- ing partner. Still, an overwhelming 90 maintaining a cooperative stance. ti-Western entity while upholding its
ponent of a shared currency, actively per cent of export invoicing remains Further complicating matters distinct non-Western identity is such
advocating for its implementation. in USD, even though the US ac- are geopolitical tensions inherent in one. Striking this balance will be the
In contrast, India adopted a contrary counts for only 17 per cent of Brazil’s the territories of member nations, test for India’s engagements with and
stance by negating the significance total exports in 2022. Similarly, Chi- which possess the potential to disrupt BRICS’ future in the world order.
of a BRICS currency. South Africa na takes the lead as Russia’s primary BRICS’ harmonious functioning. Lo-
emphasized that the idea was outside trading partner, yet the share of ex- cal conflicts and disputes may perme- Dr Rajeesh Kumar is Associate Fellow
the summit’s agenda. Chinese and port invoicing in dollars has declined ate the group’s interactions, generat- at Manohar Parrikar Institute for De-
Russian perspectives tilted towards from 81 per cent in 2013 to 48 per cent ing friction and hindering collective fence Studies and Analyses, New Delhi
a strategic shift in trade dynamics, in 2021. On another front, India’s im- initiatives. Navigating these intrica- Views expressed are of the author and
favoring a transition from the dol- ports and exports are overwhelmingly cies while preserving the unity of the do not necessarily reflect the views of
lar-centric approach to transactions denominated in USD, constituting grouping stands as a pivotal requisite the Manohar Parrikar IDSA or of the
involving national currencies. more than 80 per cent of transactions, for its sustained success. Government of India.
Nonetheless, with historical ex- despite only 6.77 per cent of imports The 15th Summit shows that
periences of US sanctions affecting originating from the US and 17 per BRICS embodies resilience, adapt- The full version of this article
all BRICS nations, particularly Russia cent of exports directed to the US. ability, and collective vision, position- first appeared in the Comments section
and China, the pursuit of de-dollar- Despite China’s dominance as South ing itself as a potent global player. The of the website (www.idsa.in) of Mano-
ization for international settlements Africa’s major trading partner, the summit also underscores that BRICS’ har Parrikar Institute for Defense
becomes a shared motivation. This USD remains the preferred currency fundamental objectives, which relate Studies and Analyses, New Delhi on
strategy seeks to alleviate vulnerabil- for invoicing transactions. to representing the interests of devel- August 31, 2023

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