BRICS 2024: How India and Emerging Economies Are Challenging Western Dominance

Prime Minister Narendra Modi began a two-day visit to Kazan, Russia, on Tuesday (October 22) to participate in the 16th BRICS summit. The three-day conclave kicked off to a flying start as it brought together at the table a huge number of world leaders. With Russia as host, diplomatic circles view this as an effort by non-West nations to flaunt their clout, especially with the Ukraine conflict raging.

Leaders from Brazil, Russia, India, China and South Africa gathered at the summit to address critical global issues and explore ways to strengthen mutual cooperation. This is the first BRICS summit since the group expanded at last year's meeting in Johannesburg. The new members are Ethiopia, Egypt, the United Arab Emirates (UAE) and Iran.

High up on the agenda is Russian President Putin's proposal to create a BRICS-led payment system as an alternative to SWIFT. SWIFT is a global financial messaging network, but Russian banks were cut off in 2022 due to sanctions. Another crucial topic being discussed is the rising tensions in the Middle East. This plan aims to reduce dependence on Western financial systems and address challenges Russia and its allies face when accessing international banking.

Improving China-India Ties

A Modi-Xi meeting is to be held on the sidelines of the summit to ease the strained ties between the two Asian giants after both the nations agreed to resume border patrolling operations along the line-of-actual control (LAC) following a disengagement process along the disputed areas. Since the face-off in Galwan Valley in 2020, tensions have run high. Despite border talks being held on and off, the situation is still fluid. A Modi-Xi meeting might see both leaders seeking a diplomatic resolution to long-standing border concerns and cooperation in building closer economic ties.

India and China have now started acknowledging that a pragmatic approach to trade and investment could only strengthen their respective economies. As the largest BRICS economies, both countries stand to benefit much from working together, especially in such areas as technology and green energy. However, any palpable progress will require tactful negotiations to deal with current geopolitical issues, especially China's ambitious designs in the Indian Ocean Region.

What does BRICS refer to?

BRICS-formed in 2006 as an antidote to the West's political and economic dominance on the world stage-originally, referred to a grouping of five nations-Brazil, Russia, India, China and South Africa. It held its maiden meet in 2009. South Africa later joined the grouping in 2010, expanding its number to five member-nations.

The BRICS summit convenes each year, hosted in rotation by its member-countries. This year is the summit's 16th edition. In 2023, BRICS invited Ethiopia, Egypt, Saudi Arabia, Iran and the UAE to join after they sought membership. All of them have officially joined, except Saudi Arabia, whose membership is being processed.

Argentina was also invited, but turned down the offer. The decision came after President Javier Milei, who was elected in December, promised during his campaign to strengthen the country's relations with Western nations. The leaders of BRICS countries-Prime Minister Narendra Modi, Chinese President Xi Jinping and South African President Cyril Ramaphosa-are attending the summit.

UAE President Mohamed bin Zayed Al Nahyan, Iranian President Masoud Pezeshkian, Egyptian President Abdel Fattah el-Sisi and Ethiopian Prime Minister Abiy Ahmed are in Kazan to attend the summit. Leaders of other countries that are interested in strengthening ties with BRICS are also attending. They include President Recep Tayyip Erdogan of Turkey and Vietnamese Prime Minister Pham Minh Chinh. Brazilian President Luiz Inacio Lula da Silva had to cancel his trip to Russia after injuring his head in a fall at home on October 19. Instead, foreign minister Mauro Vieira will represent Brazil.

BRICS nations comprise 45% of the global population with their economies jointly worth more than $28.5 trillion (around £22 trillion)-roughly 28% of the world economy.

Push to Dethrone Dollar

Russian officials have shared that around 30 more countries are interested in joining BRICS or building closer relationships with the group. Some of these nations will join the summit. The Kazan summit is meant to highlight BRICS positioning itself as the face of the "global majority".

Aside from giving Vladimir Putin a chance to make his mark on the global stage, the question remains: what real outcomes can we expect from this event? With the aim of softening the impact of Western embargoes, Putin aims to persuade BRICS members to come together in using a separate currency other than the dollar, euro, or any currencies of the G7 countries for world trade and payments. Russia's economy is currently battling bottlenecks in international trade and payments that are heavily dependent on the US dollar, which is the primary currency used for overseas transactions. This would reduce the negative effects of the sanctions imposed by the West.

Struggle for Unity Within

Critics highlight the differences among BRICS members, noting that they do not exactly share the same mindset or approach. The West stands to benefit that China and India hardly agree on anything. Jim O'Neill, ex-chief economist, Goldman Sachs, told the BBC that, if China and India worked hand in hand, BRICS could become a powerful force with significant global clout. But getting India and China to do that, especially in economic matters, is a huge challenge.

And it is not only India and China! There are also tensions between Ethiopia and Egypt. Also, despite recent efforts to mitigate tensions, relations between regional rivals Iran and Saudi Arabia have been strained for a long time. O'Neill told the BBC that the prospect of all these countries to totally agree on important issues was far-fetched.

While Russia, driven by anti-Western sentiment, promotes the idea of building a "new world order", other BRICS members, such as India, are focused on maintaining strong political and economic ties with the West. In Kazan, Vladimir Putin's goal will be to downplay the differences among BRICS members and present an image of unity. He also aims to demonstrate to both the Russian people and the world that Russia is not isolated.

Modi Shaping a Global Era

Modi's visit is happening at a moment when countries around the world are rethinking their partnerships due to the ongoing war between Russia and Ukraine. This summit will focus on diplomacy and open discussions, highlighting India's increasing role as a key player in promoting peace. India, in particular, is pushing for a peaceful solution to the conflict and wants to be seen as a 'voice of reason' in these challenging times.

Modi's approach will focus on carefully managing India's economic and security relationship with Russia, while also making sure that India's important connections with the Western countries stay strong. This balancing act is crucial for protecting India's broader global interests. Modi is likely to push for better sharing of intelligence and more regional teamwork to tackle terrorism, especially threats that cross borders and impact both India and other parts of Asia.

Stronger Economic Ties

The 2024 summit is an important moment for BRICS, especially as it recently grew to include such new members as Egypt, Ethiopia, Iran, Saudi Arabia and the UAE. This expansion shows a rising interest in creating a more balanced global economy, offering an alternative to Western-controlled financial institutions.

Modi might focus on improving intra-grouping trade, especially in the fields of technology, renewable energy and agriculture. BRICS's intra-grouping trade rose 56% from 2017, touching $614.8 billion by 2022. In the same year, India's trade with the other member-countries surpassed the $100-billion mark, illustrating close trade ties, mostly with Brazil and South Africa.

Discussions are also expected to focus on strengthening the BRICS Contingent Reserve Arrangement, a financial system that offers an alternative to the International Monetary Fund (IMF). This mechanism aims to provide financial protection for BRICS members. Modi's focus on making India more self-reliant presents chances to promote joint projects at the summit. This includes efforts through the BRICS New Development Bank (NDB), which has played a key role in funding infrastructure projects in developing countries.

By 2024, the BRICS NDB, set up as a partial alternative to the World Bank, has approved 96 projects worth $32.8 billion to improve infrastructure in its member-countries. India aims to increase its influence within the NDB and focus on securing investments in green energy, an area where working together with Russia and South Africa shows great potential.

Cultural & Humanitarian Ties

In addition to politics and economics, the summit will strengthen cultural and humanitarian ties. On this visit, Modi will, possibly, unveil new plans for cooperation in science and technology and education.

The BRICS Games, held in Kazan in June this year, provided a platform for promoting people-to-people connections, taking forward efforts in the past, such as BRICS cultural festivals and educational exchange programmes. The spotlight will also be on humanitarian efforts, especially in health, as India advocates for fair vaccine distribution and stronger health infrastructure in developing countries.

Shift in the Global Order?

The expansion of BRICS is seen as a challenge to international institutions traditionally led by the West, with Modi highlighting India's role in pushing for a more inclusive global system. For India, adding the new members creates opportunities to increase its influence in the Middle East and Africa, regions where it has been slowly growing its diplomatic and economic clout.

Iran's inclusion, especially, offers India strategic benefits in energy cooperation and could revive discussions on the long-delayed Chabahar port project. As the first BRICS summit following this major expansion, discussions are expected to focus on defining the roles of the new members and aligning the bloc's strategic goals.

For Modi, the BRICS expansion offers the scope to bolster India's leadership within the Global South and position BRICS as a counterpoint to the G-7 and other Western groups. BRICS now represents 46% of the world population and around 30% of the global GDP. India's role in shaping the group's future direction is crucial.

New Collaboration Phase?

Modi's participation in the 2024 BRICS summit in Kazan marks a key moment in India's role within the global landscape. By addressing complex geopolitical issues, building stronger economic ties and promoting deeper cultural connections, Modi aims to position India as a leader within both the BRICS group and the wider international community. The possibility of better relations with China, along with the growing influence of the BRICS bloc, highlights the potential of this summit to reshape global governance and work towards a fairer world order.

(The author of this article is a Defence, Aerospace & Political Analyst based in Bengaluru. He is also Director of ADD Engineering Components, India, Pvt. Ltd, a subsidiary of ADD Engineering GmbH, Germany. You can reach him at: [email protected])