What began as an acronym coined by Goldman Sachs has, two decades later, emerged as one of the most prominent institutional entities in the global economy. Ahead of the 2026 BRICS summit—to be hosted by India—the group is garnering attention for its economic clout, expansion, and evolving role within the global order.
From Concept to Political Platform
According to senior journalist and researcher RN Bhaskar, BRICS was originally a “conceptual construct” by Goldman Sachs, grouping together emerging economies like Brazil, Russia, India, and China. However, Russia soon envisioned transforming it into a concrete platform.
The group’s character underwent a complete transformation with the inclusion of South Africa in 2010 and the recent addition of Egypt, Ethiopia, Iran, Indonesia, the UAE, and Saudi Arabia. It has evolved from a mere forum for informal economic dialogue into an active platform addressing issues such as trade, finance, development, technology, supply chains, and global governance.
Economic Strength Metrics: GDP Growth and Scope for Trade Expansion
According to IMF data, BRICS nations accounted for approximately 40 per cent of global GDP in 2024 based on Purchasing Power Parity (PPP), compared to the G-7’s share of roughly 29 per cent. Data from the United Nations Conference on Trade and Development (UNCTAD) reveals that intra-BRICS trade surged from $84 billion in 2003 to approximately $1.17 trillion in 2024—an increase of more than thirteen-fold. Despite this growth, it still represents only 5 per cent of global trade.
BRICS’ share of global merchandise exports also doubled, rising from around 12 per cent in 2003 to 24 per cent in 2024, with the export value climbing from $1 trillion to approximately $6 trillion. However, China remains the largest exporter and importer within BRICS’ internal trade. Expert Perspective: Lack of Deep Integration is the Biggest Challenge
Former IIFT Vice-Chancellor Prof. Manoj Pant states, “China is at the centre of global trade.” According to him, while trade has certainly grown, this does not signal the formation of a deeply interconnected economic bloc. A lack of institutional, telecommunication, and business linkages among small industries is limiting the development of an integrated BRICS market.
Pant considers investment a more meaningful metric, as trade alone does not make economies structurally interdependent. RN Bhaskar links India’s initial participation to its long-standing ties with the Global South and its aspiration for leadership among developing nations. He notes that the BRICS platform remains functional despite US sanctions, with more countries preparing to transact in non-dollar currencies.
The New Development Bank and the Path to Alternative Finance
BRICS’ most tangible institutional contribution has been the New Development Bank (NDB), established in 2014. It offers an alternative to development financing outside the traditional Bretton Woods framework. The 2025 summit in Rio advocated for local currency financing and the diversification of funding sources. Rather than dismantling the existing global order, the group seeks greater representation for emerging markets within it.
India’s 2026 Presidency: Emphasis on Pragmatic Cooperation
Under India’s chairmanship, the approach has focused on pragmatic economic cooperation rather than confrontation with the existing order. The 16th BRICS Trade Ministers’ meeting in Jaipur emphasised the WTO-centric multilateral trading system, robust value chains, MSME internationalisation, trade finance, and digital services. The “BRICS Economic Partnership Strategy 2030″—covering trade, investment, the digital economy, innovation, and sustainable development—was advanced.
The Challenge Ahead: Forging Relationships Commensurate with Size
BRICS has already demonstrated the sheer scale of its economies. The true test for the coming decade will be whether it can forge deep economic ties that match its size. The group has contributed to the rise of a multipolar global economy and enhanced its visibility and bargaining power. The need now is to strengthen the institutional linkages that can transform trade into genuine economic integration.
