A Geopolitical Balancing Act
Leaders from major emerging economies are gathering in New Delhi this weekend for the latest BRICS summit, an event unfolding against a backdrop of intensified U.S. economic pressure. As reported by CNBC, the summit brings together Chinese President Xi Jinping, Russian President Vladimir Putin, and Indian Prime Minister Narendra Modi, among others, at a time when U.S. President Donald Trump’s “America-first” trade policies and ongoing sanctions against Russia and Iran have created new challenges for global trade.
While the summit is not solely a response to Washington, economic analysts note that tariffs and sanctions are forcing member nations to re-evaluate their reliance on the U.S. dollar and Western-led financial systems. The group is exploring alternative channels for trade, including the use of national currencies and digital payment systems to lower cross-border transaction costs.
The India-China Reset
A central focus of the summit is the evolving relationship between India and China. Following a period of heightened tensions after deadly 2020 border clashes, the two nations have been pursuing a cautious thaw. Chietigj Bajpaee, a senior research fellow at Chatham House, indicated that progress has been made, noting that a recent meeting between the Chinese foreign minister and India’s national security advisor yielded meaningful steps on their longstanding border dispute. This summit provides a venue to further stabilize ties, though strategic rivalry and trade imbalances remain significant obstacles.
Internal Divisions and Pragmatism
Despite the group’s expansion, which now includes Iran, Egypt, Ethiopia, the United Arab Emirates, and Indonesia, observers characterize BRICS as a “dysfunctional family” due to the divergent interests of its members. Sarang Shidore of the Quincy Institute described the group as a “pragmatic club” rather than an ideological bloc, noting that members often hold conflicting security positions—such as the presence of both Iran and the UAE, who are on opposing sides of the conflict in the Middle East.
India, in particular, continues to walk a delicate line. While it seeks to promote a non-Western worldview, it simultaneously deepens its defense and strategic cooperation with the U.S. through the Quad. For Moscow, the summit serves as a vital platform to circumvent Western sanctions and demonstrate that Russia maintains robust ties with major global economies, even as the Kremlin denies seeking an outright “de-dollarization” of the global economy.