Why in News?

• The 17th BRICS Summit was held in Rio de Janeiro, Brazil under the theme "Strengthening Global South Cooperation for a More Inclusive and Sustainable Governance".
• This Summit, which concluded with the ‘Rio de Janeiro Declaration’, marks a strategic shift towards inclusivity, expansion, and stronger South-South cooperation.

What’s in Today’s Article?

• Key Highlights of the BRICS Summit 2025
• Strategic Focus Areas and Commitments
• India at BRICS Summit 2025
• US Opposition to BRICS
• Conclusion

Key Highlights of the BRICS Summit 2025:

• Reaffirmation of BRICS spirit and strategic vision:
  • Emphasized mutual respect, sovereign equality, democracy, and inclusiveness.
  • Strengthened cooperation under three pillars:
    • Political and security
    • Economic and financial
    • Cultural and people-to-people cooperation
  • Reiterated commitment to peace, inclusive development, and reform of global governance institutions.
• Expansion of BRICS membership and partnerships:
  • Indonesia formally joins as a full BRICS member.
  • 11 new BRICS partner countries welcomed - Belarus, Bolivia, Kazakhstan, Cuba, Nigeria, Malaysia, Thailand, Vietnam, Uganda, Uzbekistan.
  • Expansion reflects an evolving multipolar world order and Global South solidarity.
• Key declarations:
  • Initiatives launched:
    • BRICS Leaders’ Framework Declaration on Climate Finance
    • Statement on Global Governance of Artificial Intelligence (AI)
    • Launch of BRICS Partnership for the Elimination of Socially Determined Diseases
  • These highlight BRICS’ commitment to inclusive innovation, climate action, and equitable health systems.

Strategic Focus Areas and Commitments:

• Strengthening multilateralism and reforming global governance:
  • The ‘Rio de Janeiro Declaration’ called for equitable, effective, and accountable multilateralism.
  • Supported the UN Summit of the Future's "Pact for the Future", including:
    • Global Digital Compact
    • Declaration on Future Generations
  • Emphasis on consultation, shared responsibility, and equitable representation in international institutions.
• Promoting peace, security, and stability:
  • Expressed concern over global military spending surge and regional conflicts.
  • Rejected linking climate change with security narratives.
  • Advocated development-centric multilateral solutions for poverty, hunger, and environmental crises.
• Economic, trade, and financial cooperation:
  • Reviewed implementation of Strategy for BRICS Economic Partnership 2025.
  • Welcomed upcoming Strategy for BRICS Economic Partnership 2030, focusing on:
    • Digital economy, trade and investment,
    • Financial cooperation, and
    • Sustainable development.
  • Pledged to uphold a transparent and inclusive multilateral trading system.
• Climate change and sustainability commitments:
  • Strong support for Paris Agreement and UNFCCC principles, especially:
    • Common but Differentiated Responsibilities (CBDR)
    • National circumstances of developing countries
  • Full backing for COP-30 in Brazil (Belem) and India’s bid to host COP-33 (2028).
  • Called for scaled-up efforts and finance for climate adaptation and mitigation.
• Social, human, and cultural development:
  • Emphasized inclusive development, particularly: youth empowerment, women’s rights, disability inclusion, urbanization, and migration management.
  • Recognized demographic changes as both a challenge and opportunity for development.

India at BRICS Summit 2025:

• India’s leadership vision - BRICS in a “New Form”:
  • At the 17th BRICS Summit, the Indian PM announced India’s upcoming BRICS presidency for 2026, outlining a transformative vision and proposing a new interpretation of BRICS -
    • Building
    • Resilience and
    • Innovation for
    • Cooperation and
    • Sustainability
  • Echoed India’s G20 Presidency theme of “People-centricity and Humanity First”, placing Global South concerns at the core.
• India’s strategic gains from BRICS 2025:
  • At the 17th BRICS Summit, India emerged as a leading voice in shaping the BRICS agenda, advancing themes of de-dollarization, climate finance, digital governance, and global institutional reform.
  • BRICS Pay and national currency settlement frameworks were discussed, though a common BRICS currency was ruled out.
  • A BRICS Multilateral Guarantee (BMG) mechanism was launched by the New Development Bank (NDB) to mobilize private investment in infrastructure, climate, and sustainable development.
• Improving India–China relations:
  • A bilateral between PM Modi and Chinese President Xi Jinping led to agreements on:
    • De-escalation along the Line of Actual Control (LAC), and
    • Resumption of border patrols.
  • This may restore investor confidence, particularly in electronics and manufacturing sectors.

US Opposition to BRICS:

• BRICS as a growing power bloc: With the addition of new members, BRICS now represents 45% of the global population and contributes 35% to global GDP.
• Concerns over BRICS currency alternatives: Despite early speculation, BRICS clarified it does not intend to replace the dollar, but rather aims to offer viable alternative settlement systems to improve market efficiency and ensure inclusive globalisation.
• Trump’s tariff threat:
  • President Trump warned of a 10% tariff on any country aligning with BRICS’ “anti-American policies”.
  • He issued a stronger warning of a 100% tariff on BRICS nations if they move to reduce dollar usage in international trade.
• India’s calibrated stand and resistance to Yuan’s dominance:
  • External Affairs Minister S. Jaishankar: “India does not target the dollar, but explores alternative trade settlements due to practical constraints.”
  • Yuan's role in BRICS: Yuan became the most traded currency in Russia, accounting for 90% of bilateral trade settlements.
  • India’s resistance: India refused to use the yuan for Russian oil imports, indicating reluctance to accept Chinese monetary hegemony.

Conclusion:

• The BRICS Summit 2025 marks a defining moment in Global South-led multilateralism and highlights BRICS’ growing relevance in shaping global discourse, reinforcing BRICS as a credible alternative to Western-dominated institutions.
• India’s proactive leadership at BRICS 2025 and forthcoming BRICS Presidency in 2026 signals its growing influence in shaping a South-led multilateral order, with tangible gains across finance, climate, tech, and trade sectors.
• India’s nuanced position on BRICS’ financial initiatives reflects its pursuit of strategic autonomy, economic de-risking, and multipolarity in global governance.