Leaders of the BRICS group of nations are scheduled to meet on Saturday in New Delhi, India, for their annual summit amid mounting geopolitical tensions and disruptions in global trade, energy markets, and shipping, according to Reuters.
History and Expansion of the Bloc
The acronym BRIC was originally coined in 2001 by Goldman Sachs Chief Economist Jim O’Neill in a research paper highlighting the growth potential of Brazil, Russia, India, and China. The nations formally came together as a bloc in 2009, and South Africa joined in 2011 to form BRICS. The grouping expanded further in 2024 with the addition of Egypt, Ethiopia, Iran, and the United Arab Emirates, followed by Indonesia in 2025. News & World Report.
Internal Divisions and Challenges
The bloc faces internal disagreements over its core purpose and divergent foreign policy interests. While Russia and China view the grouping as a counterweight to the West, India and Brazil view it as an organization more focused on economics and reform. These divisions were exacerbated by the 2024 expansion, which complicated the bloc’s consensus-oriented approach. During the summit, India aims to secure a joint statement by bridging differences between Tehran and Washington-ally Abu Dhabi, which are on opposing sides of the U.S.-Iran war. Similar disagreements previously prevented a joint statement at the BRICS foreign ministers’ meeting in New Delhi in May.
Economic Initiatives and Western Relations
Among its initiatives, the multilateral New Development Bank was established in 2015 to finance infrastructure and sustainable development projects in emerging markets. According to its website, the bank has approved 139 projects worth nearly $43 billion, though it suspended new transactions in Russia due to sanctions. Members are also establishing a BRICS Pay System to link fast payment systems for cross-border settlements without relying on dollar-based banks, exploring links between central bank digital currencies, and settling trade in national currencies.
Western nations remain cautious of the platform, and the bloc has clashed with U.S. Brazil previously floated the idea of a common BRICS currency during its chairmanship last year, but the proposal was subsequently scrapped.
