BRICS is now a powerful economic and political force, with India as one of its founding members. India has benefited from being part of this alliance. This article discusses India’s benefits from being part of the BRICS nations.
The Origin of BRICS
BRICS stands for Brazil, Russia, India, China, and South Africa. In the year 2001, Jim O’Neill formed the acronym BRIC, which was used to refer to four emerging economies. This group was formally recognized during a gathering of BRIC Ministers at the UN General Assembly (UNGA), which took place in New York in 2006. BRIC held its first summit in June 2009. This summit took place in Yekaterinburg, Russia. BRIC eventually expanded from BRIC to BRICS in 2010, introducing South Africa as its new member. This expansion event happened at the Foreign Minister’s meeting in New York. The objective behind the formulation of this group is to grow economic power in member countries. The BRICS countries share similar goals, one of which is the existence of an equitable international financial system.
How India Benefits From BRICS
Economic Opportunities
This is one of India’s main benefits from being part of the BRICS nations. The BRICS nations collectively contribute a notable portion of the world’s Gross Domestic Product (GDP), which alone contributes to India’s reputation, attracting investors and business prospects. Being part of the BRICS nations, India has gained access to many industries and opportunities, increasing trading activities in India. In addition, forex trading amongst the BRICS nations has also improved alongside trading activities.
Within the BRICS nations, China is India’s largest trading partner. These two countries have built a solid trading relationship over the past few years, with BRICS providing a stable negotiation platform. BRICS nations continuously look for ways to reduce trading barriers within their nations, and India’s ICT (Information and Communication Technology), Agriculture, and Pharmaceutical industries have greatly benefited.
Science and Technology
The BRICS nations are intentional about promoting technological and scientific collaboration. India has benefited from scientific research with the BRICS nations, collaborating on ICT, outer space, and healthcare projects. Technological advancement in China has created many learning opportunities for India, which has driven innovation and economic growth.
Diplomacy and Geopolitics
BRICS gives India a platform for multilateral diplomacy and geopolitical influence. BRICS provides several opportunities for India to cover topics relating to global issues; good examples are topics relating to climate change, economic order, and terrorism. In BRICS meetings, India has expressed its thoughts on critical global issues and proffered potential suggestions.
Development
BRICS participants have founded several development banks that provide infrastructure development for their members. An example is the NDB (New Development Bank), previously known as the BRICS Development Bank. India has been benefiting from this institution; there has been a solid history of NDB funding numerous projects in India, including the construction of roads and renewable energy plants. India also benefits from the BRICS CRA (Contingent Reserve Arrangement), which protects members from the aftermath of financial shocks. This arrangement has improved India’s financial stability and saved it from unforeseen financial crises.
Cultural Exposure
India is a country that is deeply rooted in its cultural heritage and interacts with other BRICS nations to gain more cultural exposure. The BRICS arrangement has allowed Indians and other BRICS nations to exchange cultural values through academics and cultural festivals. Such programs promote understanding among the BRICS nations and improve tourism and artistic collaborations.
Energy
India has a very high energy demand and consumption, sometimes needing help to meet these demands. Russia and Brazil are powerful oil-producing countries. As part of the BRICS nations, India has used its membership to secure good power deals and partnerships to help with its energy supply. Renewable energy has been widely adopted as more people and businesses transition. India can benefit from other BRICS nations and grow its renewable energy industry.
Balancing Out Western Dominance
One of the BRICS nations’ primary objectives is to compete with Western nations’ impact on global issues. India seeks to have a less one-sided world order, and by being part of the BRICS nations, they have reduced their dependence on Western nations.
India has benefited a lot from being a member of the BRICS nations. BRICS gives India a good standing on the global scale, and they also support India’s national interests. The international market is very competitive, with lots of possibilities. India’s Partnership with the BRICS contributes to their strategy towards prosperity and growth. Till now, BRICS has continued to evolve and expand its influence, making it a significant player in global politics and economics.