Context: As global economic uncertainty, trade restrictions and supply-chain disruptions increase, BRICS seeks to make international economic cooperation more resilient, inclusive and development-oriented. The United Arab Emirates (UAE), a full BRICS member since January 2024, emphasises converting cooperation into tangible economic opportunities.
BRICS and the Value of Economic Diversity
- BRICS brings together economies with diverse economic structures, resources, capabilities and development experiences, including major producers, consumers, capital providers, investment destinations, energy exporters and manufacturing centres.
- This diversity creates complementarities, enabling members to connect markets, capital, technology, capabilities and ideas, thereby strengthening economic opportunities across the Global South.
- The UAE views BRICS as part of its broader commitment to multilateralism, constructive dialogue and diversified international partnerships, with emphasis on peace, stability, sustainable development and shared prosperity.
From Dialogue to Economic Outcomes
For the UAE, the effectiveness of BRICS should ultimately be judged by its ability to deliver:
- Easier trade and investment flows among member countries.
- Stronger connectivity between markets and economic centres.
- More resilient supply chains and global value chains.
- Greater opportunities for businesses, entrepreneurs and investors.
- Progress towards sustainable development.
The objective should be to strengthen global economic integration rather than retreat from it, while making such integration more resilient and inclusive.
India’s 2026 BRICS Chairship
India's 2026 BRICS Chairship, centred on resilience, innovation, cooperation and sustainability, provides a framework for advancing practical economic cooperation amid rising trade barriers and supply-chain disruptions.
Key priorities include:
- Strengthening the multilateral trading system.
- Facilitating trade and investment.
- Improving physical and economic connectivity.
- Building resilient global value chains.
- Promoting sustainable development.
Development Finance and the New Development Bank
- The New Development Bank (NDB) is the BRICS-led multilateral development bank established to finance infrastructure and sustainable development projects in member countries.
- The NDB has approved more than $40 billion in financing since its establishment, supporting infrastructure and sustainable development.
- The UAE's engagement with the NDB even before becoming a full BRICS member reflects its focus on mobilising capital for productive investment and long-term economic growth.
UAE–India Economic Partnership
The UAE–India Comprehensive Economic Partnership Agreement (CEPA) has created a more favourable environment for bilateral trade and investment between two complementary economies.
- In 2025, non-oil bilateral trade increased by 17% to more than $76 billion.
- Both countries have set an ambition of raising bilateral trade to $200 billion by 2032.
- Bilateral relations extend beyond trade to investment, innovation, education, tourism and institutional and people-to-people connections.
Beyond Government-to-Government Agreements
The UAE–India experience demonstrates that durable economic partnerships require more than formal agreements.
- Greater interaction among businesses, entrepreneurs, investors and institutions builds familiarity and trust.
- Education, research, tourism, cultural exchanges and engagement among younger generations strengthen the networks supporting long-term economic relationships.
- BRICS can therefore deepen connectivity by linking economies, institutions, ideas and people, rather than focusing solely on merchandise trade.
UAE’s Connectivity-Centred Economic Model
Connectivity is central to the UAE's economic strategy.
- Non-oil sectors accounted for almost 79% of the UAE's Gross Domestic Product (GDP) in 2025, reflecting its economic diversification beyond hydrocarbons.
- World-class infrastructure, financial institutions, logistics capabilities, energy infrastructure and an open investment environment enable businesses to expand regionally and globally.
- UAE ports, airports and logistics networks connect Asia, Africa and Europe, while its financial centres connect international capital with regional investment opportunities.
- Universities, research institutions and innovation ecosystems facilitate the movement of talent, knowledge and ideas.
- The UAE has sovereign wealth assets exceeding $2.9 trillion and 38 concluded Comprehensive Economic Partnership Agreements, strengthening its ability to connect capital, markets and economies at scale.
India's BRICS Chairship provides an opportunity to:
- Build economic resilience without excessive market closure.
- Promote innovation while widening access to economic opportunities.
- Strengthen connections among businesses, institutions and people.
- Translate diplomatic dialogue into practical economic outcomes.
The UAE also looks towards China's BRICS Chairship in 2027 to build upon the momentum generated during India's leadership, with continued emphasis on openness, connectivity and practical cooperation.
Significance for the Global South
BRICS can contribute to a more representative global economic architecture by:
- Improving access to development finance and investment.
- Strengthening economic cooperation among emerging economies.
- Diversifying trade and supply-chain networks.
- Creating greater opportunities for businesses and developing economies.
- Supporting sustainable and inclusive growth.
Way Forward: The success of BRICS should ultimately be assessed not merely through declarations and agreements, but through the economic opportunities and development outcomes generated for its members. India's 2026 BRICS Summit, scheduled for September 12–13, provides an opportunity to convert cooperation into tangible gains in trade, investment, connectivity, resilience and shared prosperity.
Mains Question
Q. BRICS can evolve from a platform for diplomatic coordination into an instrument for resilient, inclusive and development-oriented economic integration. Discuss the opportunities and challenges in achieving this transition. (15 marks, 250 words)
Brief Approach
Introduction
- Briefly introduce BRICS as an important grouping of emerging economies seeking greater cooperation and a more representative global economic architecture.
- Highlight the need to move from declarations to tangible economic outcomes amid trade fragmentation and supply-chain disruptions.
Body
Opportunities
- Trade and investment: Greater intra-BRICS trade and investment flows can diversify markets and reduce excessive dependence on traditional economic centres.
- Resilient supply chains: Complementary resources, manufacturing capabilities and consumer markets can strengthen global value chains.
- Development finance: New Development Bank can support infrastructure and sustainable development projects in emerging economies.
- Connectivity: Physical, digital, financial and institutional connectivity can integrate markets, capital, technology and talent.
- Global South: BRICS can improve developing countries' access to finance and strengthen their voice in global economic governance.
- India's role: The 2026 chairship provides an opportunity to emphasise resilience, innovation, cooperation and sustainability.
Challenges
- Diverse economic structures and national interests can make consensus difficult.
- Geopolitical tensions may constrain deeper economic integration.
- Trade barriers and protectionism can undermine the objective of open economic cooperation.
- Differences in regulatory systems, currencies, standards and investment regimes can impede business integration.
- BRICS must avoid becoming inward-looking or merely an alternative bloc.
Conclusion
- BRICS should pursue open, rules-based and practical cooperation, focusing on connectivity, development finance, resilient value chains and people-to-people linkages.
- Its credibility will ultimately depend on whether institutional cooperation translates into inclusive growth and measurable development gains across the Global South.
