17th BRICS Summit 2025: India’s Role and Rebalancing Global Governance

The Prime Minister of India participated in the 17th BRICS Summit, held in Rio de Janeiro, Brazil.
The theme of the summit was:
🔷 "Strengthening Global South Cooperation for Inclusive and Sustainable Governance"

During the summit, the “Rio de Janeiro Declaration” was signed.

• Indonesia formally joined BRICS as a full member.
• Belarus, Bolivia, Kazakhstan, Cuba, Nigeria, Malaysia, Thailand, Vietnam, Uganda, and Uzbekistan were added as BRICS partner countries.
• India will chair BRICS in 2026 and host the 18th Summit.

🌍 What is BRICS?

• The term "BRIC" was coined in 2001 by British economist Jim O’Neill to describe emerging economies.
• It became active as a formal group in 2006 during the G8 Outreach Summit.
• In 2010, with the inclusion of South Africa, it became BRICS.

🔹 Membership Timeline

Saudi Arabia has not yet formalized its membership.
Argentina withdrew from its proposed membership in 2024.

📈 Global Significance of BRICS

• Population: Represents 45% of the world’s population
• GDP: Accounts for 37.3% of global GDP (EU – 14.5%, G7 – 29.3%)
• Major Initiatives:
  • New Development Bank (NDB) – 2014
  • Contingent Reserve Arrangement (CRA)
  • BRICS Grain Exchange
  • STI Framework
  • Space Council, AI Governance

📝 Key Outcomes of the 17th Summit

🔸 Global Governance Reforms

• Called for permanent UNSC membership for Global South
• Demanded rule-based reforms in IMF, World Bank, and WTO

🔸 Sustainable Development

• Adopted Climate Finance Framework
• Agreement on BRICS Carbon Markets Partnership

🔸 Peace and Security

• Called for a ceasefire in Gaza
• Reaffirmed "African Solutions to African Problems"
• Condemned the Pahalgam terror attack

🔸 Financial Cooperation

• Discussed reducing dollar dependency via cross-border payments
• Supported expansion of the NDB and initiated a Multilateral Guarantee (BMG) pilot

🔸 Technology and Digital Economy

• Issued a joint statement on Global AI Governance
• Finalized agreement on Data Economy Governance
• Agreed to establish a BRICS Space Council

🔸 Social and Health Sector

• Partnered to eliminate socially determined diseases like TB

⚖️ How BRICS Is Rebalancing Global Power?

⚠️ Challenges Facing BRICS

• Lack of a permanent secretariat, causing slow decision-making
• Geopolitical contradictions: Iran vs West, UAE & Egypt's Western ties
• Economic issues:
  • China’s growth projected to fall from 5.2% (2023) to 3.4% (2028)
  • Russia impacted by war and sanctions
  • Low intra-BRICS trade (only 2.2% in 2022)
  • Failure to establish a BRICS credit rating agency (CrRA)
• Limited institutional influence:
  • BRICS+ countries hold only 19% voting power in IBRD (G7 holds 40%)
  • NDB’s capital is smaller than IMF or World Bank
• Slow de-dollarization:
  • Local currency trade ongoing, but common currency remains unrealistic

🔧 How Can BRICS Enhance Its Role?

🔚 Conclusion

If BRICS pursues institutional reforms, financial integration, and strategic unity, it can become a formidable platform representing the Global South.

India’s 2026 chairmanship offers a historic opportunity to lead this transformation—challenging Western dominance and promoting inclusive growth.

📘 Important Q&A (For UPSC/PSC)

🔹Q1: When and why was BRICS formed?

Answer: The BRICS concept was introduced in 2001 by economist Jim O’Neill to identify rising economies. It became a formal group in 2006, and the first summit was held in 2009.

🔹Q2: What were the key outcomes of the 17th BRICS Summit 2025?

Answer:

• Signing of the Rio Declaration
• Indonesia's full membership
• Push for UNSC, IMF, WTO reforms
• Agreements on AI, space, and data governance
• BRICS Carbon Markets Partnership
• Strong statements on terrorism and Gaza ceasefire

🔹Q3: What is the biggest structural weakness of BRICS?

Answer: The absence of a permanent secretariat, which hampers efficient and coordinated decision-making.

🔹Q4: Why is India’s BRICS 2026 chairmanship important?

Answer: It allows India to lead the Global South, reshape global governance, and strengthen BRICS strategically, economically, and technologically.