How Delhi’s Ambition Will Test the Limits of Brics

As the Brics summit convenes in New Delhi on September 12-13, India finds itself at a critical juncture. The grouping has grown from four founding members to over two dozen countries, spanning multiple continents and economies. This expansion is both a testament to Brics’ increased relevance and a hindrance to its effectiveness.

The benefits of this growth are undeniable: emerging economies now have a louder voice on the global stage. However, managing vastly different relationships with Washington and Beijing, as well as addressing deep-seated economic disparities, has become increasingly complicated. At the heart of these challenges lies India’s complex relationship with China.

New Delhi seeks to leverage Brics to reduce its reliance on Western-dominated financial systems and increase its influence over global institutions. Yet, it is equally wary of replacing one form of dependence – that on the US dollar – with another, this time on China. This paradox will come under intense scrutiny at the summit, particularly in discussions around de-dollarisation, cross-border payments, and supply chain cooperation.

A common Brics currency remains an alluring prospect, but it’s currently more of a political rallying cry than an economically viable solution. A more tangible prize awaits: connecting national payment systems to make transactions smoother and less expensive. This breakthrough could allow Indian companies to receive payments from Brazilian, Emirati, or Indonesian buyers without the need for dollar-based intermediaries.

The potential implications for trade and investment among Brics members are significant, and this highlights a critical aspect of New Delhi’s agenda: transforming Brics into a network that facilitates easier transactions and cooperation among its constituents. However, this ambition faces an uphill battle due to the very diversity that makes Brics both robust and fragile.

The Shadow of China

India’s approach to managing its relationship with China within Brics is crucial. While it seeks to balance its economic interests against the backdrop of Sino-Indian tensions, any misstep could jeopardize the entire grouping. The history of Brics is replete with instances where the dynamics between India and China have dictated the direction of the bloc.

Beyond Economic Cooperation

While the summit will undoubtedly focus on economic issues, it’s worth noting that Brics’ strength lies not solely in its ability to facilitate trade or de-dollarise transactions but also in its potential as a platform for geopolitical dialogue. The grouping offers a unique opportunity for nations with divergent views on global governance and international relations to engage.

Bric(e)ing Together

The success of the summit will depend on New Delhi’s ability to navigate these complexities without sacrificing either its economic goals or its relationships within Brics. It requires balancing ambition against pragmatism, recognizing that any breakthroughs must be sustainable in the long term.

The Aftermath

The outcome of the Brics summit is by no means a done deal. The consequences of success or failure will resonate far beyond New Delhi’s borders, influencing everything from global economic structures to international relations. As India navigates this delicate dance, it faces not only its own internal contradictions but also the external pressures that come with being a leader in an increasingly fragmented world.

Ultimately, Brics’ test in Delhi is about whether diversity can be turned into strength or if it will prove to be the grouping’s undoing. The clock ticks down on September 13th, and New Delhi’s ability to orchestrate this cacophony of voices will determine not just the immediate future of Brics but also its relevance in a world where global dynamics are constantly shifting.