India treads cautiously on BRICS affairs
BRICS is on a roll. It has taken the first decisive step for its expansion by clearing the inclusion of six new members – Saudi Arabia, Iran, UAE, Egypt, Argentina and Ethiopia – in the first phase. South African President Cyril Ramaphosa, who currently holds the BRICS presidency, said that 22 countries wish to join the grouping, emerging as a counterweight to the Western powers, including the US and European Union. Chinese President Xi Jinping tried to allay fears of “block confrontation”, saying BRICS does not aim to establish a global hegemony. On the contrary, he said it is an exercise to counter hegemony by giving voice to the global south and pursuing the common good.
The Western powers, however, see BRICS as an attempt by China and Russia to challenge the perceived dominance of US-EU over world affairs and international institutions. India welcomed the new entrants but treads cautiously on BRICS affairs. Prime Minister Narendra Modi said in a measured response to the expansion, “India has always believed that adding new members will strengthen BRICS as an organisation.” India has differences with BRICS countries and does not wish to spoil its trade and military relations with the US and Europe by completely aligning itself with the goals and policies of China and Russia. India positions itself geopolitically on the side of the US by joining the Quad as a bulwark against its BRICS partner, China. It consistently opposes China’s ambitious Belt and Road Initiative. In BRICS, India thwarts the move to float a common BRICS currency to challenge the dominance of the US dollar. Russia and China are bullish on the new currency. Even Brazilian President Luiz Inacio Lula Da Silva decries the world’s dependence on the US dollar. Putin went to the extent of claiming that the process of the end of the dollar’s dominance is “irreversible”. India has decided not to be part of that process.
There are other major differences among the BRICS countries, including those over the issue of reducing trade barriers. The road ahead for the BRICS is a rocky one. Differences are bound to come to the surface when push comes to shove. BRICS, which currently represents around half of the world’s population and a quarter of the GDP, may promote the cause of multilateralism, but it would take a long time to end the dominance of the West and the US dollar.