BRICS as an Emerging Engine of Global Growth

02 Sep 2026

Tags: GS2   International Relations   Groupings   Regional Agreements

Source: The Hindu

Context: The 2026 BRICS Summit is scheduled to be held in New Delhi, providing an opportunity to expand cooperation among major emerging economies.

• BRICS has evolved from a grouping focused primarily on emerging economies into a broader platform for economic, financial, political and people-to-people cooperation.
• Its growing demographic and economic weight gives it increasing significance in global governance and the world economy.

Evolution of BRICS

• The concept of “BRIC” was proposed by Goldman Sachs economist Jim O’Neill in 2001, referring to Brazil, Russia, India and China.
• The four countries held their first high-level ministerial meeting in 2006 and the first BRIC summit in 2009.
• South Africa joined in December 2010, transforming BRIC into BRICS.
• The grouping has subsequently expanded into BRICS+, comprising 11 member countries and 10 partner countries, according to the article.

Growing Global Economic Weight

• BRICS countries account for around 45% of the world's population, while BRICS+ represents around 55%.
• Collectively, BRICS+ economies are approaching 35–45% of global GDP on a Purchasing Power Parity (PPP) basis and exceed $30 trillion in nominal GDP.
• Their large population, markets and economic weight give BRICS+ a significant collective voice in global economic affairs.
• International projections cited in the article suggest that BRICS+ could grow nearly three times faster than the G7 by 2028, strengthening its position as an important growth centre.

Purchasing Power Parity (PPP)

• PPP compares economies based on the relative purchasing power of their currencies, allowing better comparison of the actual volume of goods and services produced.
• Nominal GDP, in contrast, converts GDP using prevailing market exchange rates; hence an economy's relative size can differ substantially under the two measures.

Growing International Interest

• Countries such as Argentina, Algeria and Türkiye have expressed interest in joining BRICS.
• The expanding interest indicates that BRICS is increasingly viewed as a platform for dialogue, economic cooperation and greater representation of emerging economies.

India’s 2026 BRICS Priorities

• India’s 2026 BRICS agenda focuses on four broad priorities:
  • Resilience
  • Innovation
  • Cooperation
  • Sustainability
• These priorities are intended to strengthen the three major pillars of BRICS:
  • Political and security cooperation
  • Economic and financial partnership
  • Cultural and people-to-people exchanges
• China has expressed support for India’s leadership of the 2026 BRICS Summit.

India–China: Scope for Cooperation

• India and China are among the world's largest economies in PPP terms, ranking first and third respectively according to the article.
• Their combined population accounts for around 35% of the global population, giving bilateral relations significance beyond the two countries.
• Both countries are at important stages of national development and therefore have substantial potential for economic cooperation and shared growth.
• Recent resumption of direct flights and increasing exchanges among sister cities, universities and businesses indicate some revival of bilateral engagement.

Why India–China Cooperation Matters Globally

• Greater economic cooperation between India and China could contribute not only to bilateral prosperity but also to regional and global economic growth.
• Their combined economies constitute a significant share of global output—around 28% on a PPP basis and about 20% in nominal terms, according to the article.
• Given their scale, both countries are likely to remain important engines of global economic growth in the coming years.
• Conversely, prolonged confrontation between two major economies can create a lose-lose outcome, affecting regional stability, trade and global growth.

Panchsheel and People-to-People Relations

• India and China have historically promoted the Five Principles of Peaceful Coexistence (Panchsheel), centred on principles such as mutual respect for sovereignty, non-aggression and peaceful coexistence.
• Greater interaction among young people, universities, businesses and cities can create sustained societal linkages and potentially strengthen long-term bilateral relations.
• The article argues that India's and China's large youth populations can increasingly serve as bridges between the two societies.

Significance of BRICS

• BRICS provides emerging economies with a platform to pursue greater voice in global economic and political governance.
• Its growing membership and economic weight contribute to the broader debate over reform of global institutions and a more representative international order.
• For India, BRICS offers a mechanism to simultaneously pursue strategic autonomy, economic cooperation, Global South outreach and engagement with major powers.