Key Concepts
- BRICS: Brazil, Russia, India, China, and South Africa – a bloc representing the Global South.
- Global South: Developing and less developed countries, often facing similar socio-economic challenges.
- Investment Guarantee Mechanism: A proposed financial instrument to de-risk investments in developing countries, particularly for climate change and infrastructure projects.
- New Development Bank (NDB): A multilateral development bank established by BRICS nations.
- Reserve Currency: A currency held in significant quantities by governments and institutions as part of their foreign exchange reserves. (Currently, the US Dollar is the dominant reserve currency).
- Sustainable Development Goals (SDGs): A collection of 17 interlinked global goals designed to be a "blueprint to achieve a better and more sustainable future for all" by 2030.
India’s BRICS Chairmanship: Priorities and Challenges
India will assume the BRICS chairmanship in the coming year, a position taken at a particularly sensitive juncture for the bloc. While BRICS has established itself as a significant voice for the Global South, it faces internal divisions and external scrutiny, notably from the United States. India’s approach, as outlined by Prime Minister Narendra Modi, aims to redefine BRICS as an acronym representing “building resilience and innovation for cooperation and sustainability,” prioritizing the interests of the Global South while remaining adaptable to global developments.
Key Priorities Under India’s Chairmanship
A central focus for India’s presidency will be the development of a proposed investment guarantee mechanism. This mechanism is intended to address challenges related to climate change, poverty, energy transition, and infrastructure development within BRICS and other developing nations. The intention is to create an institution, operating alongside the New Development Bank (NDB), that offers guarantees for investments, providing a more accessible alternative to Western-dominated financial institutions. As one analyst stated, the goal is to allow countries, “especially the small countries of the south, don’t have to go and fill in complicated forms in Washington but they can do it in an approachable way.”
India also intends to emulate its successful 2023 G20 presidency model by hosting multilateral BRICS meetings in approximately 60 cities across India. This strategy serves a dual purpose: promoting these cities internationally and raising awareness within India regarding New Delhi’s prominent role on the global stage.
Navigating Internal and External Pressures
The most significant challenge facing India’s chairmanship will be balancing the internal politics of BRICS with external pressures, particularly from the United States. Maintaining BRICS’s image as a champion of the Global South while simultaneously engaging with Washington will require careful diplomacy.
The India-China relationship also presents a key challenge. While relations have shown some improvement since 2024, underlying distrust persists, compounded by Beijing’s close ties with Islamabad, which New Delhi accuses of supporting cross-border terrorism. However, experts believe that both nations can set aside their differences for the collective benefit of BRICS. One expert noted, “It is an open secret that China's support for Pakistani policies… do create complication but within BRICS when it comes to developing common positions I think China essentially cooperates with the other members.”
The US Factor and De-dollarization
The potential for BRICS to challenge the US dollar’s dominance as a reserve currency is a point of contention with the United States. Former President Donald Trump has threatened to impose 100% tariffs on BRICS nations should they pursue such a path. This threat is particularly relevant as India simultaneously seeks to negotiate a trade deal with Washington and secure tariff concessions. US officials, while not publicly critical or supportive of BRICS, acknowledge that, “bricks means no harm to America as far as Trump is concerned he’s he’s not going to change his views.”
BRICS Expansion and Economic Significance
BRICS has recently expanded to include Indonesia, Egypt, Ethiopia, and Iran, significantly increasing its global reach. The bloc now represents approximately half of the world’s population and nearly 40% of global economic output. India’s priority will be to focus on delivering tangible benefits to emerging markets and demonstrating BRICS’s ability to unite members despite their potentially competing interests.
Focus on Sustainable Development Goals
A renewed emphasis on achieving the Sustainable Development Goals (SDGs) by their 2030 deadline is also anticipated. Progress towards these goals has been slow, necessitating a refocusing of attention and collaborative efforts.
Conclusion
India’s chairmanship of BRICS in 2026 presents a critical opportunity to shape the influence of the Global South in an increasingly divided world. Successfully navigating internal complexities, managing external pressures, and delivering concrete results for emerging markets will be crucial for solidifying BRICS’s position as a significant force in global affairs. As Ishan Gerk concludes, “If India keeps the group aligned in 2026, it could shape how the global south wields influence in a divided world.”
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