India’s role in BRICS
BRICS is an acronym for Brazil, Russia, India, China and South Africa – five emerging nations that formed an alliance for economic and social development. The commonality between them is that they are all newly industrialised and aiming for maximum trade and development. Together, BRICS accounts for about 40% of the world’s Population and about 30% of the GDP (Gross Domestic Product), making it a critical economic engine. It’s an emerging Investment market and global power bloc. And, as the third largest economy in the world, it’s important for India to take its role in the BRICS seriously.
India serves a multifaceted role on the economic, political and social fronts.
Role in trade
The first BRICS summit was held in 2009, in the midst of global Recession. Since then, India assumed the role of a trade facilitator in South Asia and Africa owing to its economic strength at that time. In fact, the forum’s analysts called India the best-performing economy in South Asia and an engine of Growth in the region.
India has taken several steps to improve trade including proposals for a new inclusive BRICS portal. This is so that the next time any one of the BRICS countries tweaks its import or export licenses, imposes anti-dumping duties or changes the criteria for product registration, the other members are likely to learn about it instantly. It also pitched for an independent BRICS credit rating agency so that members can compare their ranking with members itself instead of other developed countries.
India also promotes intra-BRICS trade, which means urging member nations to import goods from each other instead of Europe. The idea is that intra-trade provides the flexibility of trading in currencies other than the dollar. For example, India and Brazil could trade in Rupee or Lira, whichever suits the deal. By doing this, countries can strengthen their own currency while weakening the US Dollar.
And, when it comes to upping trade and industrial Infrastructure-2/”>INFRASTRUCTURE, India has contributed over $10 billion to the New Development Bank (the bank of BRICS) to refurbish industrial bases in South Africa and Brazil.
Of course, trade policies and structure is not the only facilitation. The Indian Ocean, being one of the busiest maritime trade routes in the world, is an important region for BRICS. India wants control over this region for two very specific region – first, developing bases in this region would mean faster trade among member nations. And second, the bases will prevent any Resources mined here, like the 100 tonnes of natural gas found in 2017, from being taken by other countries like US or Japan. Plus the region is so rumbling with pirates that it’s important to strengthen security here. India intends to join hands with South Africa (since it’s their coastline) to deepen security at shared costs.
As a growth engine for BRICS
In order for BRICS to flourish, each country must first and foremost focus on their own Economic Development. A strong nation will strengthen the BRICS as a whole. And India? It’s like the growth maker of the BRICS.
From 2001 to 2013, the economic output of BRICS nations rose from $3 billion to $15 billion. Investors saw India, China, and Brazil as a sure thing. But all that soon changed. In the past few years, BRICS has been facing a hard time. The increasing sanctions on Russia, China’s stock market crash in 2015, Indian markets’ bear run in 2014, and the ongoing Brazilian economic crisis, all led investments to flow back to the US.
Of all these, only the Indian market bounced back soon enough to overturn the damage. By 2018, India’s growth rate was highest among the BRICS nations and it convinced investors to reinvest in BRICS. Member nations now look up to India as an aid to faster development.
To begin with, India invested close to $4 billion in South Africa and started the Global Executive Development Programme to train labour force there. It helped Brazil and South Africa replicate it ‘Digitisation of Education’ initiative by providing technological aid to schools there. It also offered to host trade fairs so that members can learn and share innovation. It wants each country to be independently strong so that the burden of strengthening the BRICS doesn’t fall on one or two nations alone. And for this, it provides a brotherly hand.
As a counterbalance to china
China is already the premier economic influencer here, which only makes it easier for it to influence the World Bank. With such power, it can secure political clout to pass projects, which would’ve otherwise been rejected, like the development of the new Silk Road. The purpose of the World Bank is to ensure weaker countries develop faster and reduce their reliance on foreign aid. But the Silk Road refutes this purpose to make China even more economically dominant. The Road will lead to faster spread of terrorism and thwart local business in the countries it passes, due to ease of international trade. These countries will also have to bear the cost of security on the Road, to prevent thefts. This is an added expense for already weaker economies like Afghanistan and Egypt.
India realises this danger and has thus been adamant against the OBOR (one belt, one road) project. Time and again it has made it clear in international forums that the OBOR will threaten development than promote it. In 2018, it skipped China’s Silk Road forum as a gesture of disagreement. Then India and US together announced a plan to construct its own Silk Road, building a highway to Thailand and proposed another north-south corridor with Russia. All of this to counter China’s OBOR initiative.
Another such counterbalancing incident arose when starting the New Development Bank. China urged that each country’s share in the bank should depend on their economic strength. Clearly, more share meant more control for China. India rejected this claim too, demanding an equal share for all five members so that they each had a say in the BRICS summits.
India has also repeatedly used the BRICS to stall several Chinese actions that would have culminated in war. In fact, a week before the 2017 BRICS summit, China withdrew its forces from Dokhlam due to fears of pressure from other member nations. The same thing happened in 2014 too during the LAC border standoff. India used the BRICs card to maintain peace, another role that it happily serves.
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India’s role in BRICS has been significant. The country has played a leading role in promoting economic, political, security, cultural, and people-to-people cooperation within the bloc. India’s participation in BRICS has helped to promote the country’s interests and to project its image as a global power.
Economic cooperation
India has been a strong advocate for economic cooperation within BRICS. The country has proposed a number of initiatives to promote trade and investment between the member countries. In 2014, India launched the BRICS New Development Bank (NDB), which is a multilateral development bank that provides financial assistance to infrastructure projects in the member countries. The NDB has so far approved loans worth over $10 billion for projects in a range of sectors, including energy, transport, and urban development.
India has also been a strong advocate for the establishment of a BRICS Free Trade Area (FTA). The FTA would eliminate tariffs and other trade barriers between the member countries, and would boost trade and investment. The negotiations for the FTA are ongoing, but India has been pushing for a quick conclusion of the negotiations.
Political cooperation
India has also been a strong advocate for political cooperation within BRICS. The country has called for the member countries to work together to address global challenges such as Climate change and terrorism. India has also been a strong advocate for the reform of the United Nations Security Council, and has called for BRICS to play a greater role in the UN.
Security cooperation
India has also been a strong advocate for security cooperation within BRICS. The country has called for the member countries to work together to combat terrorism and other transnational threats. India has also been a strong advocate for the establishment of a BRICS-led security architecture in the Asia-Pacific region.
Cultural cooperation
India has also been a strong advocate for cultural cooperation within BRICS. The country has organized a number of cultural events to promote understanding between the member countries. In 2016, India hosted the BRICS Culture Festival, which was attended by artists and performers from all five member countries. The festival showcased the rich cultural diversity of the BRICS countries.
People-to-people contact
India has also been a strong advocate for people-to-people contact within BRICS. The country has organized a number of events to promote interaction between the people of the member countries. In 2017, India hosted the BRICS Youth Summit, which was attended by young people from all five member countries. The summit discussed issues of common interest to young people, such as education, EMPLOYMENT, and Entrepreneurship.
India’s role in BRICS has been significant. The country has played a leading role in promoting economic, political, security, cultural, and people-to-people cooperation within the bloc. India’s participation in BRICS has helped to promote the country’s interests and to project its image as a global power.
What is BRICS?
BRICS is an acronym for Brazil, Russia, India, China, and South Africa. It is a group of five major emerging economies that have been working together to promote economic growth and development.
When was BRICS formed?
BRICS was formed in 2006 at a meeting of the leaders of Brazil, Russia, India, and China. South Africa joined the group in 2011.
What are the goals of BRICS?
The goals of BRICS are to promote economic growth and development, to strengthen cooperation among member countries, and to increase their voice in global affairs.
What are some of the achievements of BRICS?
BRICS has achieved a number of things, including:
- Creating a new development bank, the New Development Bank (NDB), to provide funding for infrastructure projects in developing countries.
- Establishing a reserve currency pool, the Contingent Reserve Arrangement (CRA), to help member countries deal with financial crises.
- Promoting trade and investment among member countries.
- Working together to address global issues such as Climate Change and terrorism.
What are some of the challenges facing BRICS?
BRICS faces a number of challenges, including:
- Economic inequality within and between member countries.
- Political instability in some member countries.
- The rise of protectionism and nationalism in some countries.
- The need to address global issues such as climate change and terrorism.
What is the future of BRICS?
The future of BRICS is uncertain. Some analysts believe that the group will continue to grow in importance and influence, while others believe that it will eventually fade away. It is likely that BRICS will continue to face challenges, but it is also likely that the group will find ways to overcome these challenges and continue to play an important role in global affairs.
What is India’s role in BRICS?
India is a founding member of BRICS and has played an active role in the group. India has been a strong advocate for economic development and cooperation among member countries. India has also been a vocal critic of protectionism and nationalism. India’s role in BRICS is likely to continue to be important in the years to come.
Sure, here are some MCQs about BRICS without mentioning India’s role:
Which of the following is not a member of BRICS?
(A) Brazil
(B) Russia
(C) India
(D) China
(E) South AfricaBRICS stands for:
(A) Brazil, Russia, India, China, and South Africa
(B) Belgium, Russia, Italy, China, and South Africa
(C) Britain, Russia, India, China, and South America
(D) Brazil, Russia, Iraq, China, and South Africa
(E) None of the aboveBRICS was founded in:
(A) 2006
(B) 2007
(C) 2008
(D) 2009
(E) 2010The goal of BRICS is to:
(A) Promote economic growth and development among its members
(B) Promote political stability and security among its members
(C) Promote cooperation in areas such as trade, investment, and technology
(D) All of the above
(E) None of the aboveThe headquarters of BRICS is located in:
(A) New York City
(B) London
(C) Beijing
(D) Moscow
(E) None of the aboveThe current chair of BRICS is:
(A) Brazil
(B) Russia
(C) India
(D) China
(E) South AfricaThe BRICS New Development Bank (NDB) was founded in:
(A) 2014
(B) 2015
(C) 2016
(D) 2017
(E) 2018The NDB has its headquarters in:
(A) New York City
(B) London
(C) Beijing
(D) Moscow
(E) ShanghaiThe NDB has a total authorized capital of:
(A) $100 billion
(B) $500 billion
(C) $1 trillion
(D) $2 trillion
(E) $3 trillionThe NDB has approved loans for projects in the following sectors:
(A) Energy
(B) Transportation
(C) Infrastructure
(D) All of the above
(E) None of the above
I hope these MCQs were helpful!