BRICS

BRICS is a grouping of major emerging economies that cooperate on economic, political and developmental issues, offering a platform beyond the Western-led institutions that have traditionally dominated global governance. The term was coined by economist Jim O'Neill in 2001 to describe fast-growing economies, and it later evolved into a formal grouping. BRICS represents a significant share of the world's population, land area and economic output, and champions a more multipolar world order.

Origin and members

The acronym BRIC originally stood for Brazil, Russia, India and China — coined by Goldman Sachs economist Jim O'Neill in 2001 to highlight the world's most promising emerging markets. The countries began meeting formally, holding their first summit in 2009. South Africa joined in 2010, turning BRIC into BRICS. From 2024, the grouping expanded to include several new members such as Egypt, Ethiopia, Iran and the UAE, broadening its economic and geographic footprint and its claim to represent the Global South.

The New Development Bank

One of BRICS' most concrete achievements is the New Development Bank (NDB), established in 2014 and headquartered in Shanghai, China. The NDB funds infrastructure and sustainable-development projects in BRICS and other emerging economies, offering an alternative to Western-dominated institutions like the World Bank. Each founding member has an equal shareholding, reflecting the group's emphasis on equality among members, and the bank has expanded to admit new members over time.

The Contingent Reserve Arrangement

BRICS also created the Contingent Reserve Arrangement (CRA), a financial safety net that allows member countries to support one another during balance-of-payments or currency crises by providing liquidity through currency swaps. Together, the NDB and CRA are seen as BRICS' attempt to build parallel institutions to the World Bank and the IMF, giving emerging economies more autonomy in global finance.

Areas of cooperation

BRICS cooperation spans economy and trade, finance, development, security, health, agriculture, science and technology, and people-to-people ties. In recent years the group has discussed reducing dependence on the US dollar in trade (sometimes called 'de-dollarisation'), local-currency settlement, and coordination on issues like counter-terrorism and climate. It works through annual summits hosted by the rotating chair, along with numerous ministerial and working-group meetings.

Significance for India and the world

For India, BRICS is a platform to advance its interests as a leading emerging economy, engage major powers like Russia and China outside Western forums, and push for reform of global governance, including the UN Security Council and international financial institutions. BRICS collectively represents a large and rising share of global GDP and population, positioning itself as a voice for the Global South and a counterweight to the G7.

Challenges and criticism

Despite its ambitions, BRICS faces internal challenges. Its members are diverse and sometimes have conflicting interests — notably the India-China rivalry, and the varying political systems and economic models among members. Critics question its cohesion and whether it can move beyond declarations to effective action, especially as rapid expansion could dilute focus. Balancing the interests of a larger, more varied membership while maintaining a common agenda is BRICS' central test going forward.

Why it matters for UPSC

BRICS members, the origin of the term, South Africa's 2010 entry, the recent expansion, the New Development Bank's location (Shanghai) and the Contingent Reserve Arrangement are frequently examined current-affairs and IR topics, and BRICS features in Mains discussions on multipolarity and reform of global governance.