- India and China needs to improve ties in order to brighten the prospects of BRICS
What is BRICS?
- BRICS is an association of Brazil, Russia, India, China and South Africa, the five fastest emerging nations
- BRICS comprises of 43% of the world population, 30% of the world GDP and 17% share in the world trade.
- BRICS aims to help developing nations step up and heighten their position in international organizations like IMF and World Bank.
- BRICS have formed their own development bank, with its net worth to be around $100 billion
What is the significance of BRICS?
- BRIC(S) was established as a response to global financial crisis of 2008, led by the Bretton Woods institutions
- The BRICS nations have together been able to:
- Promote exports
- Coordinated responses in international legal disputes
- Successfully negotiated for an increase in voting shares at the World Bank.
What is the significance of BRICS in India’s context?
- India being a very ambitious country has high aspirations to become a global super power. BRICS is the stepping stone to this.
- Through G4 (Brazil, Germany, India and Japan) and BRICS it can ask strongly for UNSC reforms to make India as a Permanent Member.
- Through BRICS, the countries can have multilateral relations in their local currencies. This helps all of them directly as the ForEx is not depleted and their own currencies are strengthened.
- They promote South-South cooperation and North-South dialogue. (South represents developing countries and North represents Developed)
- BRICS Banks can help in infrastructure development of all countries unlike IMF or World Bank which needs large amounts of gold as collateral on top of structural economic reforms.
- BRICS may prove to be a great platform for India where its voice will be heard by all countries.
How BRICS helped in strengthening the stance of emerging economies?
- BRICS may help to attract more investment into the five economies, especially India and China because
- 40% of the world’s population
- quarter of its growth at $17 trillion
- BRICS New Development Bank set up in 2015 has already given out about $6 billion in loans for 23 projects across BRICS countries
Can the India-China concerns negatively impact the BRICS agenda?
- BRICS now faces its most challenging summit because of growing differences between its two biggest members, India and China.
Some of the issues are:
- While both sides smoothed out by disengaging the troops at Doklam and obtaining assurance that none shall change the status quo at the tri-junction area more hard work would be required to restore the situation.
Nuclear Suppliers Group
- China’s opposition to India’s membership of the Nuclear Supplier’s Group (NSG) has been an issue for over a decade now.
- China’s uneasiness at allowing India a seat at the table shows the lack of mutual incompatibility among them.
China’s Belt and Road Initiative (BRI)
- India’s refusal to be a part of the BRI over sovereignty issues was a cause for tensions before the Doklam stand-off between both nations
- The rift over China’s Belt and Road Initiative (BRI) is likely to dominate discussions at BRICS, as it now a priority above all of China’s policies.
- China will surely aim to bring the BRI on the table for negotiations at BRICS
- The fiction between two of the most crucial nations of BRICS can most likely impact the BRICS agenda.
- Rift between the two nations may even overshadow the overall objectives and concerns of the BRICS summit.
The road ahead
- The upcoming BRICS summit appeared to have exerted enough pressure on both China and India
- BRICS has fared better than two other groupings, SAARC and the Non-Aligned Movement, which was skipped by India recently
- It is thus crucial for both the power houses to set aside their differences and work together as two of the fast growing economies of the world.