Forest Services
Introduction: BRICS Summit 2024 and Key Attendees
China’s Foreign Minister Wang Yi and Russia’s Foreign Minister Sergey Lavrov will participate in the BRICS summit scheduled for May 14-15, 2024. The meeting will be hosted by South Africa, convening the five member states: Brazil, Russia, India, China, and South Africa. This summit is pivotal as it reflects BRICS’ ongoing strategic emphasis on enhancing multipolar global governance and deepening economic cooperation amid evolving geopolitical alignments.
UPSC Relevance
- GS Paper 2: International Relations – BRICS role in global governance, India’s foreign policy
- GS Paper 3: Economic Development – BRICS economic cooperation, New Development Bank (NDB)
- Essay: Multipolarity in World Politics and India’s Strategic Position
BRICS: Institutional Framework and India’s Legal Mandate
BRICS operates as an intergovernmental forum without a binding treaty or permanent secretariat, limiting formal institutionalization. India’s engagement is managed by the Ministry of External Affairs (MEA) under the Government of India (Allocation of Business) Rules, 1961. Furthermore, Article 253 of the Indian Constitution empowers Parliament to enact laws implementing international agreements such as BRICS declarations and initiatives, providing a constitutional basis for India’s commitments within the bloc.
- BRICS lacks a formal treaty or permanent secretariat, relying on annual summits and ministerial meetings for coordination.
- MEA coordinates India’s BRICS diplomacy, ensuring alignment with national foreign policy objectives.
- Article 253 enables legislative support for international cooperation frameworks like BRICS.
Economic Significance of BRICS and India’s Trade Relations
BRICS collectively accounts for approximately 42% of the global population and contributes nearly 25% of the world GDP (World Bank, 2023). Intra-BRICS trade volume reached an estimated $500 billion in 2023 (UN Comtrade). India’s bilateral trade with China and Russia stood at $125 billion and $13 billion respectively in 2023 (Ministry of Commerce). The New Development Bank (NDB), established by BRICS, has approved over $30 billion in loans since 2015, primarily for infrastructure and sustainable development projects within member states.
- BRICS GDP share: 24.8% of global GDP (World Bank, 2023).
- India-China trade: $125 billion (2023), India-Russia trade: $13 billion (2023).
- NDB loans exceed $30 billion since inception, focusing on infrastructure financing.
Comparison: BRICS vs G7 and Other Global Blocs
| Aspect | BRICS | G7 | European Union (EU) |
|---|---|---|---|
| Member Composition | Emerging economies: Brazil, Russia, India, China, South Africa | Advanced economies: USA, UK, Germany, France, Italy, Canada, Japan | 28+ European countries with supranational governance |
| Political Systems | Diverse: democratic, authoritarian, hybrid regimes | Liberal democracies | Democratic, with shared sovereignty |
| Institutional Structure | Loose forum, no permanent secretariat | Informal summit-based, no treaty | Formal institutions: European Commission, Parliament, Court of Justice |
| Economic Focus | South-South cooperation, infrastructure financing via NDB | Global economic governance, liberal economic order | Single market, customs union, economic integration |
| Financial Institutions | New Development Bank (NDB) – $30B loans since 2015 | International Monetary Fund (IMF), World Bank participation | European Investment Bank (EIB) |
Strategic Implications of Wang Yi and Lavrov’s Participation
The presence of China’s Wang Yi and Russia’s Sergey Lavrov signals BRICS’ intent to consolidate its role as a counterbalance to Western-dominated institutions. Their participation underscores the bloc’s commitment to multipolarity, challenging unipolar US-led global governance. For India, this summit offers a platform to balance relations with both Russia and China while advancing economic cooperation and reforming global governance structures to better reflect emerging economies’ interests.
- BRICS as a platform to promote multipolarity and South-South cooperation.
- India’s diplomatic balancing act between China and Russia within BRICS framework.
- Opportunity to push for reforms in global financial and political institutions.
Institutional Limitations and Challenges
Despite its economic weight, BRICS lacks a permanent secretariat and formalized decision-making mechanisms, which constrains coordinated policy action. This limits its ability to respond swiftly to global crises or enforce collective decisions, contrasting with more institutionalized blocs like the EU. Additionally, divergent political systems and strategic interests among members pose challenges to deeper integration.
- No permanent secretariat or binding treaty limits institutional coherence.
- Diverse political systems hinder unified policy formulation.
- Coordination challenges reduce effectiveness in global governance roles.
Way Forward: Enhancing BRICS’ Global Role and India’s Strategic Gains
- Institutionalizing BRICS with a permanent secretariat to improve coordination.
- Expanding NDB’s mandate to finance climate and digital infrastructure projects.
- India leveraging BRICS to diversify economic partnerships beyond the West.
- Promoting reforms in global governance institutions through BRICS consensus.
- Strengthening intra-BRICS trade and investment to reduce dependency on Western markets.
- BRICS has a permanent secretariat headquartered in Shanghai.
- The New Development Bank was established to finance infrastructure projects in BRICS countries.
- BRICS operates under a binding treaty ratified by all member states.
Which of the above statements is/are correct?
- Article 253 empowers Parliament to make laws implementing international agreements.
- The Ministry of External Affairs has exclusive authority to ratify international treaties without parliamentary approval.
- The Government of India (Allocation of Business) Rules, 1961, delegate BRICS coordination to the MEA.
Which of the above statements is/are correct?
Jharkhand & JPSC Relevance
- JPSC Paper: Paper 2 (International Relations and Indian Foreign Policy)
- Jharkhand Angle: Jharkhand’s mineral exports and industrial sectors can benefit from enhanced BRICS infrastructure financing and trade cooperation.
- Mains Pointer: Discuss how BRICS economic initiatives can impact Jharkhand’s development and India’s strategic autonomy in foreign policy.
What is the New Development Bank (NDB) and its role in BRICS?
The New Development Bank, established in 2015 by BRICS countries, finances infrastructure and sustainable development projects within member states. It has approved over $30 billion in loans, focusing on enhancing economic cooperation and reducing reliance on Western financial institutions.
Does BRICS have a permanent secretariat?
No, BRICS operates as a loose intergovernmental forum without a permanent secretariat, relying on annual summits and ministerial meetings for coordination.
How does Article 253 of the Indian Constitution relate to BRICS?
Article 253 empowers the Indian Parliament to make laws for implementing international agreements, including those under BRICS, thereby providing constitutional legitimacy to India’s commitments within the forum.
What distinguishes BRICS from the G7?
BRICS comprises emerging economies with diverse political systems focusing on multipolarity and South-South cooperation, whereas the G7 consists of advanced liberal democracies emphasizing the existing liberal international order.
What are the main challenges facing BRICS?
Key challenges include lack of formal institutional mechanisms, absence of a permanent secretariat, diverse political systems, and differing strategic interests, which limit coordinated policy action and deeper integration.