Tezzbuzz Desk- An important summit of BRICS is going to be held in New Delhi on 12 and 13 September. This meeting, to be chaired by India, is taking place at a time when BRICS has expanded to 11 countries. New members like Egypt, Ethiopia, Iran, Saudi Arabia, UAE and Indonesia have joined the group.
The influence of this group, formed about two decades ago, has now increased considerably. BRICS represents the bulk of the world's population and several major emerging economies. In such a situation, special discussions are expected in this conference on issues like trade, investment, energy, supply chain and transactions in local currencies.
BRICS's economic strength increased after expansion
With the addition of new members, many of the world's largest oil and gas producing countries as well as large energy consumers have joined BRICS. Apart from this, there are also rapidly growing manufacturing economies in the group.
India is trying to make mutual trade easier among the member countries. For this, emphasis is being laid on reducing transaction costs and simplifying customs related rules. Work is also being done to prepare an action plan for the period 2026 to 2030.
Diplomatic balance between India, China and Russia is important
BRICS conference is also important for India from diplomatic point of view. After the SCO meeting, once again the top leaders of India, China and Russia will be seen on one platform. Prime Minister Narendra Modi's possible talks with Chinese President Xi Jinping and Russian President Vladimir Putin will also be under watch. On one hand, India faces challenges like border dispute with China, while on the other hand, Russia is an important partner in the field of energy and defence.
The BRICS platform does not guarantee an end to these differences, but it does provide an opportunity for India to balance its strategic relations with different countries.
India's strategy to reduce dependence on dollar
The issue of reducing dependence on the US dollar and increasing trade in local currencies may remain prominent in BRICS. However, India remains cautious about the idea of a common BRICS currency in this matter. India's emphasis instead of any anti-dollar campaign Making cross border payments cheaper and easier But it is. Trading in local currencies and developing better payment systems are part of this strategy.
The proposal by the Reserve Bank of India to link the digital currency systems of BRICS countries is also being considered an important step in this direction.
Consensus can be reached in the field of energy
Energy can become a major area of cooperation among BRICS countries. The group includes major energy producing countries like Russia, Saudi Arabia, UAE and Iran, while India and China are among the world's largest energy consumers. The priority of producing countries is stable market and demand, while the endeavor of consuming countries is to ensure affordable and secure energy supply. In such Energy Security, New Technology and Sustainable Energy There can be important discussions in the conference on increasing cooperation in the field of agriculture.
The challenge before India will be to create consensus among the different interests in this vast group of 11 countries and make BRICS a more effective platform for trade and economic cooperation.