Dramatic expansion of BRICS in 2025 makes way for more growth in 2026

Key Concepts

• BRICS: An evolving economic bloc initially comprising Brazil, Russia, India, China, and South Africa, now expanded to 11 member states.
• Multilateralism: The principle of international cooperation and collaboration.
• South-South Cooperation: Collaboration among developing countries.
• Geopolitical Reality: The influence of political power dynamics on economic relationships, particularly the strong ties between BRICS members and China.
• De-dollarization: (Implied) The potential for BRICS to reduce reliance on the US dollar in international trade.

BRICS Expansion and Shifting Global Dynamics

The BRICS economic bloc, originally consisting of Brazil, Russia, India, China, and South Africa, has significantly expanded to include 11 member states spanning Latin America, Africa, the Middle East, and Asia. As of 2025, BRICS represents approximately 40% of the global economy. The recent summit in Brazil, hosted by President Luiz Inácio Lula da Silva, served as a platform to defend multilateralism amidst perceived threats to established international norms. President Lula da Silva highlighted concerns regarding the erosion of achievements in areas like climate regulation and trade, alongside a struggling global health system and restrictions on access to essential medicines due to intellectual property demands. He stated that international law and peaceful dispute resolution are becoming ineffective.

Institutional Challenges and Operational Complexity

With the addition of Saudi Arabia and Indonesia, BRICS now comprises 11 full members and 10 partner countries. This expansion presents substantial coordination challenges. A key concern, as noted by observers, is establishing effective mechanisms for consensus-building within the enlarged group to avoid friction between member states. The need for internal mechanisms to prevent overshadowing of smaller nations is paramount. As the last of the original members to join, South Africa views Brazil’s presidency as a pivotal moment, marking the first meeting of the expanded BRICS block. The summit’s theme focused on “strengthening global south cooperation for more inclusive and sustainable governance.”

Economic Activity and Trade Expansion

Beyond institutional adjustments, tangible economic activity is already underway. Trade and investment among BRICS members are increasing. A prominent example is the influx of Chinese investment into Brazil’s electric mobility sector. Both Great Wall Motors (GWM) and BYD have established manufacturing plants in Brazil in 2025, targeting the South American market. BYD reported producing 10,000 cars in Brazil within 60 days of opening its factory in Camacari, a significant milestone for the company.

China’s Influence and Emerging South-South Routes

While BRICS has boosted trade between its members and China, the transcript acknowledges that strong commercial ties with China would likely persist regardless of the bloc’s existence, citing it as a “geopolitical reality.” However, BRICS offers opportunities to foster new trade routes between countries in the Global South. The growing relationship between Brazil and India exemplifies this trend, with both nations exploring deeper commercial and political cooperation. A bilateral meeting between Brazilian President Lula da Silva and Indian Prime Minister Narendra Modi at the 2025 BRICS summit resulted in agreements to enhance trade, investment, and political collaboration.

Diversification of Imports and Investment

Brazilian businesses are increasingly importing products from India, including tires, tuk-tuks, and Royal Enfield motorcycles (owned by Indian company Aicher Motors since 1994). Indian companies are actively seeking to expand their business presence in Brazil, recognizing its market potential and customer base. One Brazilian businessman noted the increasing interest from Indian companies in investing in Brazil, citing confidence in the country’s potential.

Russia’s Economic Resilience

BRICS is also playing a strategic role in mitigating the economic impact of international isolation on Russia, particularly in the context of the conflict in Ukraine. The bloc, specifically Brazil, China, India, and South Africa, provides Russia with crucial avenues for reorganizing economic ties, establishing new trade agreements, and forging bilateral partnerships. These nations serve as “very good vectors” for Russia to develop new economic relationships.

Future Outlook and India’s Presidency

As of late 2025, BRICS is larger, more influential, and more complex than ever before. The key question moving forward is whether the expanded group can translate its political ambitions into sustained economic growth. India will assume the BRICS presidency in 2026, and its leadership will be crucial in navigating these challenges and capitalizing on the bloc’s potential. Paulo Cabral, reporting for CGTN from São Paulo, concludes the report.