India at the BRICS Table: A Bigger Seat, A Bigger Role
SIBM, Noida
A seat at a table is much more than a chair. It's a chance to talk, negotiate, shape and, occasionally, dictate the discussion. The BRICS table has started playing an important role for India .
What started off as an economic acronym has become a platform that brings together key emerging economies from regions, markets and political systems. BRICS provides India with opportunities to expand its financial cooperation, enter new markets, avail development finance, and also provide it with a wider platform to interact with the Global South. It also puts India in a room with a possibility for countries to work together on one thing, but compete on the other.
But there is a bigger question,
Is India's rise in BRICS just about a larger seat at the table, or is India starting to play a bigger role at the table?
From an Acronym to a Global Platform
The concept of BRICS started as an economic idea. Brazil, Russia, India and China are known as the BRIC economies, a term that was first coined by economist Jim O'Neill in 2001 to describe the potential for these countries to grow as economies. Over time, the concept shifted from being economic to political and the first summit of the ‘BRIC’ was held in 2009. Later, South Africa joined making BRIC become BRICS.
Since then, the group has grown, with agendas that have broadened to include matters beyond economic growth. The language of trade, finance, development, technology, climate change, energy, food security and global governance have now joined the discussion.
This change has significance to India.
It is on the basis of BRICS that India can interact with the broader body of emerging economies and take part in discussions on issues that are of importance to developing economies.
The table is now larger. India’s role is gaining more prominence in it.
What Does India Bring to the Table?
India's presence in the BRICS is not just being a part of it. The grouping provides India with a number of opportunities.
The first one is access to the market. BRICS brings India in the fold of big and growing economies, which opens opportunities for more trade, investment and business expansion. This could open the door to new customers, suppliers, and partners for Indian businesses in emerging markets.
The second is development of finance. Another source of financing is the New Development Bank for infrastructure and sustainable-development projects. This is another type of financial institution and mechanism which India can avail for the development.
The third is financial cooperation. Discussions at the BRICS forum about local-currency settlements and alternative ways of conducting cross-border payments are part of a wider effort to diversify international payments. For India, these will provide possibilities to more vigorously use the rupee in international trade.
However, one of the biggest advantages is perhaps less obvious – the diplomatic space. BRICS provides India another forum to engage in discussions on global governance, development and interests of emerging economies.
India's Global South Advantage
The significance of India's BRICS role is enhanced when viewed from the prism of the Global South.
Issues regarding access to finance, technology, infrastructure, representation in international institutions, and climate finance are common issues that affect developing economies. By joining BRICS, India gets the opportunity to interact with countries that have many of the common challenges that it has.
It is a chance for India to establish itself as a bridge between different geopolitical interests, developed and developing economies, and between various regions. BRICS is, thus, not solely a matter of India's ties with the other BRICS countries for India. It’s also about the tone of India's voice when it comes to discussions outside of the confines of the conference.
When Geopolitics Meets Business
The BRICS story assumes more relevance from the business angle. Cooperation in areas of trade in goods and services, global value chains, agriculture, the digital economy, women-led enterprises, startups and support for small and medium-sized business is a key focus of the BRICS Business Forum material.
This is important because the cooperation will ultimately have to be manifested on the ground in some concrete way within the context of geopolitics. It may be a new international market for an Indian entrepreneur. It can be a new customer base for an exporter. It may be a dream come true for an MSME to access international partners. For a startup, it may create tracks for overseas investment and enterprise interaction. For a startup, it could be possibilities for connecting with investments and companies outside India.
Furthermore, the shift towards global value chains and resilient supply chains is indicative of evolving perceptions of international trade. The goal is not just more trade, it's trade that is more resilient and more inclusive.
That's where the BRICS transition from diplomacy to a possible business opportunity comes in.
India's Pitch: Make in India, Innovate with India, Scale for the World
During the BRICS Business Forum, PM Modi aligned India's increased capabilities in the fields of infrastructure, startups, technology and digital innovation with its BRICS membership.
He emphasized that India is striving to make India a global manufacturing hub and concluded the message with the slogan “Make in India, Innovate with India and Scale for the World”
He also spoke about India's startup ecosystem and UPI as examples of innovation which can be exported beyond India. His overall message was that BRICS can provide opportunities for businesses, entrepreneurs and startups to “build economic bridges” and penetrate into new markets.
So for India, it is not just a matter of diplomacy, it is also a matter of the opportunities presented to build, innovate and trade with the world in the bigger role that it assumes in BRICS.
The Dollar Question
The issue of the use of the US dollar in international trade and finance is one of the most talked about aspects of BRICS. The notion of getting rid of the dollar has sparked a lot of debate, especially regarding local-currency settlements and other payment methods. However, it is important to note the difference between the dependence on the existing financial channels and the establishment of a single currency of BRICS .The establishment of a common BRICS currency would need much more economic and monetary coordination among countries that have vastly divergent economic structures and policies.
The more direct debate is thus one in which the countries wish to make cross-border transactions more flexible. These may have implications for India in terms of trade with other emerging economies and may also impact the international use of the rupee.
The real question isn't whether the dollar is going away.
It's the question of whether the world's financial system can support more than one path of international trade and payments.
India and China: Same Table, Different Interests
The most complex aspect of India's BRICS narrative is China. India and China are competitors in several areas, including investment, manufacturing and supply chains. Strategic and border differences also have had a negative impact on their bilateral relationship.
However, both nations are still on the same BRICS platform. This results in an unusual situation. BRICS doesn't solve bilateral conflicts. Rather, it provides a new venue for countries that have conflicting interests to seek commonalities for which they can cooperate.
This is a significant outlook of international relations. It is not always necessary that a country has to opt for either complete friendship or complete rivalry. They may compete in one aspect and cooperate in another.
BRICS offers just that for India. The key is to accomplish the intended use of that space without excluding the opportunity for bilateral differences to hinder cooperation on matters of mutual interest.
A Bigger Table Does Not Mean an Easier Conversation
But BRICS can only go so far. The diversity has grown in line with the size of the grouping. Political systems, economic systems, and strategic interests and relations vary between countries.
This is a clear problem: What do countries not always in agreement agree on?
The more people that join the more people can be reached, but the more difficult it is to coordinate. The material also indicates to readers that BRICS is not a fully-formed bloc, as there are rivalries and competing interests within it.
This situation makes leadership more complex in India. Leadership is not just about ‘the loudest voice’. It’s about discovering sufficient commonalities for various voices to move in the same direction.
Strategic Autonomy: India's Balancing Act
India's involvement in BRICS is also India's general foreign policy which is Strategic autonomy. India joins in with other international groups and partnerships as well as BRICS. India does not have to adhere to one bloc for all its diplomatic and economic interests and should take advantage of a series of platforms for various issues.
India thus has room for those countries who may not always have the same political or strategic interests. In India, the power of BRICS, in fact, may not be on which side of the world they sit, but on the number of tables they can sit at. This flexibility can be crucial in an era where economic ties and geopolitical ties do not necessarily go hand-in-hand.
From a Bigger Seat to a Bigger Role
So, what does India's bigger role in BRICS imply?
But it's not just the meetings or the declarations! It's about the opportunities for real business, investment, financing and trade with BRICS.
This means more interaction with new markets.
It entails the creation of more room for the concerns of the Global South. It suggests the research of novel monetary devices that will make foreign exchanges more flexible. It also means being able to work in tandem with nations in which India may need to play a competition. This also comes with a responsibility though. The only way for BRICS to go beyond talking points is for its members to implement the cooperation. The role of India will not be limited to what it will bring to the table, it will be what it will help to accomplish around the table.
Conclusion: The Seat Is Only the Beginning
The economic acronym was initially suggested in 2001 and has since developed into a great extent. It has grown into a wider forum for cooperation between emerging economies, a forum that goes beyond the realm of trade and economic growth.
This transition is an important opportunity for India.
The Nation now has new markets, financial institutions, diplomatic platforms and relations with the Global South. May contribute to economic integration, and talk about future economic cooperation between BRICS and explore the adaptation of global institutions.
However, there are more difficulties that accompany a larger crowd.
Consensus can be difficult to achieve a result as there are differences in interests, geopolitical interest and economic interest. How these differences are managed will, therefore, play a key role in the ability of India to use its power and influence.
The significance and contribution of India in the ambit of BRICS may not rely on the number of countries that are attending the table. It is based on what India does with its seat at it.
Increase in size can bring an increase in visibility.
However, a greater role can be earned by being able to connect, negotiate, cooperate, and make a conversation come to a conclusion.
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