BRICS and Beyond: How India is Reshaping Global Economic Alliances

Introduction

In the 21st century, global power dynamics have shifted from the dominance of the traditional Western powers to a more diverse array of voices in economic governance. India, one of the world’s fastest-growing economies and the world’s most populous country, is at the forefront of these changes, playing an increasingly influential role in international economic alliances like BRICS, the G20, and the Shanghai Cooperation Organisation (SCO).

As a member of these groups, India champions a multipolar world order where developing nations have a say in shaping global policies. This blog explores India’s role in these alliances, its objectives, and the impact of its participation on the future of global governance.

1. India’s Vision of a Multipolar World: A Brief Background

India’s foreign policy is built around the concept of "strategic autonomy" — the idea of maintaining independence in international affairs while engaging with multiple global powers. With roots in the Non-Aligned Movement, India's approach continues to be one of fostering cooperative relationships rather than aligning fully with any single bloc.

This vision resonates in its involvement in BRICS and other forums that challenge the traditional Western-led world order. By actively participating in these alliances, India not only seeks to advance its national interests but also advocates for greater inclusion of developing economies in the global decision-making process.

2. BRICS: Building Bridges with Emerging Economies

BRICS, composed of Brazil, Russia, India, China, and South Africa, was formed in 2009 as an alliance to represent the interests of emerging economies. The bloc represents over 40% of the world’s population and accounts for about a quarter of the global economy. India’s involvement in BRICS reflects its commitment to strengthening South-South cooperation and creating an alternative platform for dialogue and action.

2.1 India’s Role in BRICS Economic Strategy

BRICS focuses on several key areas of cooperation, including trade, investment, and sustainable development. India’s role within BRICS involves advocating for inclusive growth, technological innovation, and sustainable practices. Some of the highlights of India’s impact include:

The BRICS Development Bank (NDB): India has been instrumental in the establishment of the New Development Bank (NDB), headquartered in Shanghai. The NDB provides financial support for infrastructure projects in member states and other developing countries, giving them an alternative to Western financial institutions like the IMF and World Bank.
BRICS Contingent Reserve Arrangement (CRA): This mechanism provides a financial safety net for BRICS countries, enabling them to tackle liquidity crises without relying on Western-based institutions. India’s role in this is pivotal as it strengthens the alliance’s independence from traditional power centers.

2.2 The Challenge of Geopolitical Balancing

India’s role in BRICS is complex, especially given its often-tense relationship with China. India works to ensure that BRICS remains focused on economic cooperation rather than political alignment. This balancing act requires diplomacy, especially as India is often aligned with the U.S. on issues like security, which contrasts with China and Russia's stance within BRICS.

3. India in the G20: A Voice for Developing Nations

The G20, established in 1999, brings together the world’s largest economies, including both developed and developing countries. India's participation is significant as it represents not only itself but also the broader interests of emerging economies.

3.1 Key Contributions and Initiatives

India has consistently advocated for equitable economic development and sustainable growth within the G20. Some notable areas where India has made a mark include:

Global Taxation and Financial Transparency: India has been a strong proponent of tax transparency and closing tax loopholes that allow multinational corporations to avoid taxes in developing countries. Through the G20, India has pushed for a fairer global tax system that benefits all nations.
Climate Change and Green Financing: India has been vocal about the need for climate justice, urging developed countries to take greater responsibility for their historical carbon emissions. India advocates for green financing, particularly the mobilization of funds for clean energy projects in developing nations.
Digital Transformation and Cybersecurity: Recognizing the growing importance of technology, India has introduced the concept of “data for development” in G20 discussions, stressing that technology should be used to bridge global inequality. India has also advocated for international cooperation on cybersecurity to ensure a safe digital ecosystem.

3.2 India’s G20 Presidency in 2023

India held the G20 Presidency in 2023, which was an opportunity to set the agenda and priorities of the G20. India emphasized “Vasudhaiva Kutumbakam” (the world is one family), which highlighted inclusivity, sustainability, and equitable growth. The agenda included promoting green energy, reforming multilateral institutions, and addressing the concerns of developing countries in areas like trade and debt relief.

4. India’s Role in the SCO: Strategic Economic Partnerships

The Shanghai Cooperation Organisation (SCO), which India joined as a full member in 2017, is a Eurasian political, economic, and security alliance that includes China, Russia, and several Central Asian countries. Although originally focused on security, the SCO has increasingly embraced economic cooperation.

4.1 Economic Opportunities and Regional Connectivity

For India, the SCO provides a platform to engage with Central Asia, a region rich in natural resources and important for trade routes. Some of India’s objectives within the SCO include:

Energy Security: Central Asia has vast oil and gas reserves, which are essential for India’s growing energy needs. Through the SCO, India seeks to develop partnerships that ensure a steady supply of these resources.
Connectivity Projects: India has promoted the International North-South Transport Corridor (INSTC), a 7,200-km multi-modal route that reduces travel time and distance for Indian trade with Russia and Europe. India views the SCO as a way to gain support and collaboration for such connectivity initiatives, which would enhance regional trade.

4.2 Bridging Tensions

Like in BRICS, India’s participation in the SCO is a balancing act due to its differences with China and Pakistan, both SCO members. India uses the SCO to maintain open channels of communication and emphasizes economic cooperation over political issues within this alliance.

5. Expanding Alliances: India’s Outreach Beyond BRICS, G20, and SCO

India’s approach to global economic alliances extends beyond formal groups, as it also engages in bilateral partnerships, regional agreements, and new coalitions with other emerging economies. Some of these include:

The Quad (India, the US, Japan, and Australia): While the Quad focuses more on security, economic cooperation is increasingly part of the dialogue, especially in areas like technology, supply chain resilience, and infrastructure investment.
The India-Africa Forum Summit (IAFS): India has strengthened its engagement with African countries, offering trade partnerships and investment in infrastructure, healthcare, and education. India’s outreach to Africa aligns with its vision of South-South cooperation and promotes a balanced global economic structure.
Engagement with ASEAN: India’s Act East Policy has strengthened its economic ties with Southeast Asia, focusing on trade, investment, and connectivity projects. This is part of India’s goal to counterbalance China’s influence in the region and reinforce regional stability.

6. India’s Broader Impact on Global Governance

India’s active participation in these alliances has implications for global governance, challenging Western hegemony and promoting a more inclusive approach. The broader impacts of India’s role include:

Empowering Developing Nations: By championing issues such as climate justice, fair trade, and economic equality, India has emerged as a leader for developing nations within global economic alliances.
Reforming Global Financial Institutions: India continues to advocate for reforms in institutions like the IMF and World Bank, arguing for greater representation and a more balanced governance structure that reflects today’s economic realities.
Promoting Sustainable Development: India’s emphasis on sustainable development and climate action is a cornerstone of its global economic alliances, encouraging investment in green energy and eco-friendly technologies.

Conclusion

India’s growing role in BRICS, the G20, the SCO, and other global economic alliances signals its transition from a regional player to a significant voice in shaping international economic policies. By promoting a multipolar world order and advocating for the needs of developing nations, India is reshaping the landscape of global economic governance. As it continues to strengthen these alliances, India’s commitment to inclusivity, sustainability, and fair trade positions it as a key driver in building a more balanced and equitable global economy.

India’s journey is a testament to how emerging economies can assert their influence and contribute meaningfully to international alliances. As these global economic partnerships evolve, India’s role will remain crucial, guiding the world towards a future where diverse perspectives and shared progress redefine the concept of power in the 21st century.

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