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BRICS is not yet an alternative world order, but it is one of the clearest signs that the countries of the Global South want a bigger say in shaping one
BRICS is a grouping of emerging and developing economies that coordinate on economic, political and diplomatic issues. (AFP)
With India holding the BRICS chairmanship in 2026 and preparing to host the 18th BRICS Summit in New Delhi on September 12-13, the grouping is once again at the centre of discussions on the changing global order. BRICS has expanded far beyond its original five members and now brings together some of the world’s largest emerging economies, major energy producers and influential countries of the Global South.
But what exactly is BRICS? Is it an alliance like NATO? Does it have its own currency? Why are so many countries seeking membership? And can it really challenge the dominance of the US-led global economic system?
Here is a complete explainer.
What Is BRICS?
BRICS is a grouping of emerging and developing economies that coordinate on economic, political and diplomatic issues.
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It is not a military alliance, not a formal international organisation and not a treaty-based bloc. It has no permanent secretariat, constitutive treaty or independent budget. Decisions are generally taken through consensus, while the chairmanship rotates annually among members.
The central idea behind BRICS is to give countries of the Global South greater collective influence in global institutions and international decision-making.
The grouping seeks reforms in institutions such as the United Nations, IMF, World Bank and WTO, arguing that the post-World War II international system gives disproportionate influence to Western powers.
Why Is It Called BRICS?
The name has an interesting history.
In 2001, Goldman Sachs economist Jim O’Neill coined the term “BRIC” for four rapidly growing economies: Brazil, Russia, India, and China.
O’Neill’s argument was essentially that these emerging economies had the potential to become increasingly important drivers of global economic growth and challenge the dominance of established Western economies.
The term initially described an economic concept, rather than an organisation. The four governments subsequently turned the idea into a diplomatic grouping. Their first formal summit was held in Yekaterinburg, Russia, in 2009.
In 2010, South Africa was invited to join, becoming a full member in 2011. That is when the ‘S’ was added, turning BRIC into BRICS.
Who Are The BRICS Members Now?
BRICS has undergone its biggest expansion in recent years.
The 11 full members are:
Brazil Founding member
Russia Founding member
India Founding member
China Founding member
South Africa 2011
Egypt 2024
Ethiopia 2024
Iran 2024
Saudi Arabia 2024
UAE 2024
Indonesia 2025
The 2024 expansion was particularly significant because it brought in major Middle Eastern oil producers, African economies and Iran, dramatically increasing the grouping’s geopolitical and energy significance.
Why Did BRICS Expand?
The expansion was not simply about adding more countries to an economic club. It significantly broadened BRICS’ geographical, demographic, energy and geopolitical footprint.
The addition of Saudi Arabia and UAE brought major Gulf economies and energy producers, Iran brought another major oil and gas producer with a strongly anti-US foreign policy, Egypt and Ethiopia strengthened BRICS’ African presence, and Indonesia added Southeast Asia’s largest economy and most populous country.
The result is a grouping that is much more representative of the Global South than the original BRIC configuration. The expansion also reflects growing interest among developing countries in having greater negotiating power in a world increasingly divided by US-China competition, sanctions, trade disputes and geopolitical conflicts.
Bigger Than Just 11 Countries
There is an important distinction between members and partner countries.
At the 2024 Kazan Summit, BRICS created a formal “partner country” category. Partner countries can participate in BRICS summits and foreign ministers’ meetings and may take part in other discussions subject to consultation and consensus among members. They can also endorse certain BRICS declarations.
The initial partner countries included Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Nigeria, Thailand, Uganda and Uzbekistan. Vietnam subsequently became the 10th BRICS partner country.
The distinction matters because being a BRICS partner is not the same as being a full BRICS member. More than 30 countries have expressed interest in joining BRICS either as members or partners.
What Does BRICS Actually Do?
BRICS works across three broad areas:
1. Politics And Security
Members consult each other on major international issues, including UN reforms, conflicts and wars, international security, terrorism, global governance, sanctions and unilateral coercive measures.
One of the group’s central demands is greater representation for developing countries in international institutions. That includes calls for reforms of the UN Security Council and the global financial system.
2. Economy And Finance
Economic cooperation is at the heart of BRICS.
Members discuss trade, investment, infrastructure, energy, financial cooperation, development, technology, supply chains, and local-currency trade.
India’s 2026 chairmanship is placing particular emphasis on resilience, innovation, cooperation and sustainability, including stronger supply-chain cooperation and greater use of national currencies in trade.
3. People-To-People Cooperation
BRICS has expanded into areas such as education, health, science and technology, culture, youth, business, start-ups, innovation, climate, and agriculture.
So, BRICS is no longer simply a meeting of five emerging economies. It has developed a large network of ministerial meetings, working groups and sectoral initiatives.
What Is The New Development Bank?
One of BRICS’ most important concrete achievements is the creation of the New Development Bank (NDB). It was established in 2015 and is headquartered in Shanghai.
The idea was to create a development-financing institution that could fund infrastructure and sustainable-development projects in emerging economies, providing an additional option alongside institutions such as the World Bank and IMF.
BRICS also created the Contingent Reserve Arrangement (CRA), designed to provide financial support to members facing balance-of-payments or currency crises.
The NDB has therefore become an important symbol of BRICS’ ambition to build alternative institutions, rather than simply criticising existing Western-led ones. However, it is still much smaller than the World Bank and cannot realistically replace the existing global financial architecture on its own.
Is BRICS Trying To End Dominance Of US Dollar?
Yes, but the reality is more complicated than the idea of a “BRICS currency”. BRICS countries have increasingly discussed reducing their dependence on the US dollar, particularly for trade among themselves.
The reasons include exposure to US financial sanctions, vulnerability to dollar exchange-rate movements, concerns about dependence on Western financial institutions, and a desire for greater monetary sovereignty. The preferred approach so far has largely been to increase trade in national currencies and develop alternative payment mechanisms.
Does BRICS Have Its Own Currency?
No. There is currently no BRICS currency that people or governments use as a common currency.
There have been proposals for a common currency, a currency basket or alternative payment mechanisms, but creating a genuine common currency would require enormous political and economic coordination.
It would involve questions such as who would control the currency, what central bank would issue it, what exchange rate would apply, how would monetary policy be coordinated, and how would countries with very different economies share a currency.
For now, the much more realistic objective is greater use of local currencies in bilateral trade and reducing dependence on the dollar where possible.
How Powerful Is BRICS?
The 11-member BRICS grouping represents almost half of the world’s population and a substantial share of global economic output. CFR estimates that the expanded grouping accounts for more than a quarter of the global economy and almost half of the world’s population.
Its importance also comes from what its members collectively control:
Energy: Russia, Saudi Arabia, UAE and Iran are major oil and gas producers.
Manufacturing: China is the world’s manufacturing powerhouse, while India is emerging as a major manufacturing and technology centre.
Food and commodities: Brazil and Russia are major agricultural and commodity exporters.
Population: China, India, Indonesia, Brazil and other members collectively represent an enormous consumer market.
Geography: BRICS now stretches across South America, Europe/Asia, South Asia, East Asia, Africa and the Middle East.
This makes BRICS important not simply because of GDP, but because of its combined population, energy resources, commodities, manufacturing capacity and strategic geography.
BRICS Vs G7
The G7 represents seven advanced industrial democracies—the US, Canada, UK, France, Germany, Italy and Japan, along with the EU participating in its work.
It has wealthy developed economies, long-established Western-led institutions, strong political and economic alignment, and generally greater institutional cohesion.
BRICS, meanwhile, has emerging/developing economies, is much more politically diverse, includes democracies and authoritarian governments, and members often have competing geopolitical interests. It also focuses heavily on Global South representation and reform of global governance.
Are BRICS Countries Actually United?
Not always. And this is one of the biggest challenges facing the grouping.
India and China, for example, are strategic competitors and have had a serious border dispute. China and Russia generally favour a stronger challenge to Western dominance, while India, Brazil and South Africa maintain important relationships with the US and other Western countries.
There are also rivalries among new members.
For example, Saudi Arabia and Iran have historically been regional rivals. Egypt and Ethiopia have differences over the Nile and the Grand Ethiopian Renaissance Dam. Russia’s war in Ukraine has exposed different positions among BRICS members.
This means BRICS does not necessarily speak with one voice on every major geopolitical issue.
Another crucial aspect to note is if BRICS is an anti-US or anti-Western bloc. BRICS describes itself primarily as a platform for Global South cooperation and reform of global governance, rather than an alliance explicitly directed against the United States.
But its agenda can challenge aspects of the existing US-led system, particularly dollar dominance, Western control over global financial institutions, unilateral sanctions, the composition of the UN Security Council, and Western dominance over global rule-making.
At the same time, countries such as India, Brazil and the UAE have significant economic and strategic relationships with the US and Europe. So describing BRICS simply as an “anti-Western alliance” misses the complexity.
What Is India’s Significance In BRICS?
For India, BRICS provides a platform to pursue strategic autonomy.
India can simultaneously engage with the US and Western countries, work with Russia on defence and energy, compete and cooperate with China, strengthen ties with the Global South, and push for reform of global institutions.
BRICS therefore fits India’s longstanding preference for multiple strategic partnerships rather than joining a single geopolitical camp.
India’s 2026 chairmanship is especially significant because it comes at a time of major geopolitical and economic uncertainty. The Indian presidency is focused on resilience, innovation, cooperation and sustainability, with an emphasis on practical outcomes.
BRICS is not yet an alternative world order, but it is one of the clearest signs that the countries of the Global South want a bigger say in shaping one.
Quick Answers
The BRICS grouping does not currently have a common currency. It is highly unlikely to create one in the future because major member states oppose the idea. India has explicitly rejected the creation of a separate BRICS currency and does not support any proposal to introduce one. Brazil has also played down the prospect, rejecting the idea that the bloc is working towards a common currency. Instead, the group is focusing on using local currencies for trade.
About the Author
Apoorva Misra is an Associate Editor at News18.com with a keen interest in politics and current affairs. She loves uncovering fresh angles and telling stories through long-form features and explainers…Read More
September 02, 2026, 13:03 IST
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