Why in the News?

• India at the BRICS Summit 2025 called for fair and transparent economic practices, opposing the linkage of trade measures with non-trade issues amid rising US tariff disputes.

What’s in Today’s Article?

• BRICS (Introduction, History, Objectives, Achievements, etc.)
• BRICS Summit 2025 (Key Highlights of EAM S. Jaishankar’s Speech)

Introduction

• The BRICS Summit 2025, convened virtually under the leadership of Brazil, has emerged as a key platform for discussions on global economic disruptions triggered by rising tariff wars and geopolitical tensions.
• Representing India, External Affairs Minister (EAM) S. Jaishankar underscored the urgent need for fair, transparent, and rules-based economic practices.
• He highlighted India’s concerns over linking trade measures with non-trade issues, a veiled reference to the United States’ recent tariff escalations.

Understanding BRICS

• BRICS, an acronym for Brazil, Russia, India, China, and South Africa, is an influential intergovernmental grouping that represents nearly 42% of the world’s population.
• BRICS economies contribute an estimated 37.3% of global GDP, reflecting their significant economic weight.
• Historical Background
  • The concept of BRICS was first introduced in 2001 by economist Jim O’Neill to describe emerging economies shaping the global order.
  • The first BRIC Summit was held in 2009 in Russia, and South Africa joined in 2010, transforming it into BRICS.
• Objectives

• Reform of global financial and political institutions to reflect emerging economies.
• Enhanced trade, investment, and sustainable development among member states.
• Cooperation on security, technology, and climate change.
• Advocacy for a multipolar world order to counter Western dominance.

• Achievements
  • Over the years, BRICS has launched initiatives like the New Development Bank (NDB), which finances infrastructure and sustainable projects, and the Contingent Reserve Arrangement (CRA) to stabilise economies during crises.
  • It has also served as a forum for discussing counter-terrorism, energy security, digital innovation, and global governance reforms.
• Challenges

• Internal divisions - particularly between India and China due to border tensions.
• Economic asymmetry - China’s overwhelming dominance compared to other members.
• Geopolitical contradictions - diverging interests in Ukraine, West Asia, and trade policies.
• Limited integration - trade among BRICS members is often constrained by deficits and protectionist measures.

Summary of the 2025 BRICS Summit

• India’s Concerns on Tariff Wars
  • At the 2025 BRICS Summit, EAM S. Jaishankar raised concerns over the United States’ imposition of 50% tariffs on Indian and Brazilian exports, citing penalties for oil trade with Russia.
  • He strongly objected to linking trade measures with non-trade matters, arguing that such practices destabilise the global economic order.
• Call for Fair and Transparent Economic Practices
  • S. Jaishankar emphasised that the international trading system must remain open, fair, transparent, non-discriminatory, and rules-based.
  • He stressed that increasing barriers and protectionism would not help developing economies, especially when global food, energy, and fertiliser security is already strained.
• Need for Resilient Supply Chains
  • Highlighting vulnerabilities exposed by the COVID-19 pandemic, geopolitical conflicts, and climate disruptions, S. Jaishankar called for resilient, redundant, and diversified supply chains.
  • He advocated democratizing manufacturing across geographies to prevent overdependence on specific regions.
• Global South and Multilateralism
  • The External Affairs Minister noted that the Global South has been disproportionately affected by conflicts in Ukraine and West Asia, experiencing shortages in food, fuel, and fertilisers.
  • He pressed for a diplomatic resolution to conflicts and reformed multilateralism, particularly within the United Nations system.
• India’s Trade Deficits within BRICS
  • S. Jaishankar pointed out that India faces some of its largest trade deficits with BRICS partners, especially China.
  • He urged member states to review trade flows and adopt more cooperative mechanisms that can reduce imbalances and boost intra-BRICS trade.