Expansion of BRICS

Recently, five new members namely Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates have joined BRICS as full time permanent members. However, Argentina has withdrawn.

About BRICS

• British economist Jim O' Neill coined and used the acronym 'BRIC' for the first time in 2001.
• BRIC started functioning as a formal grouping in 2006.
• First BRIC Summit was held in Yekaterinburg (Russia) in 2009.
• BRIC became BRICS with the inclusion of South Africa in 2010.
• BRICS is the acronym for the group of world's leading emerging economies, i.e. Brazil, Russia, India, China and South Africa

Importance of BRICS expansion

Shaping a Multipolar World: 

• BRICS' expansion with diverse regions and economic powerhouses makes it a key player in the global system.

Expanding the group's presence in new regions: 

• The expansion will strengthen BRICS' presence in key regions including the Middle East, Africa and South America, further enhancing its global footprint.

Increased influence in the global economy: 

• BRICS nations now comprise more than 40% of the world's population have surpassed the G7 countries in terms of purchasing power parity.

Steps towards de-dollarization: 

• Egypt has shared its intention to pay for imports from China, India and Russia in their respective currencies.

Significance of BRICS for India

Voice for developing nations and global south: 

• BRICS serves as a platform for India to express its concerns and advocate for the rights of developing countries while acting as a leader of the global South on issues such as terrorism, climate change.

Safe Space for Dialogue: 

• BRICS provides India with a neutral platform to engage in dialogue and manage potential rivalry even in times of bilateral tensions. (India-China Doklam standoff)

multilateral 

• It allows India to push for reforms in institutions such as UNSC and WTO for ensuring equitable global order.

Inclusive Financial Structure:

• It contributes to building a more inclusive global financial system with initiatives such as New Development Bank

Reduction in import dependence: 

• Increased cooperation can help diversify India's import sources and secure better trade deals, thereby reducing high import dependence