Key facts
- Donald Trump's policies are expected to loom large over the Brics summit in Delhi.
- The Brics group includes India, China, Russia, Brazil, South Africa, the UAE, Iran, and Saudi Arabia.
- India is reportedly in the final stages of a trade deal with the US.
- The UAE hosts US military bases and has come under Iranian attack.
- Trump has warned Brics countries would face 100% tariffs if they backed another currency to replace the US dollar.
- Brics accounts for 49% of the world's population, 40% of global GDP and 26% of international trade.
Leaders from 11 Brics nations are gathering in Delhi for a summit where the influence of US President Donald Trump's policies is expected to be a dominant theme. The group, which includes host India, China, Russia, Brazil, South Africa, the UAE, Iran, and invited member Saudi Arabia, will discuss a range of issues, but geopolitical realities and divergent national interests are likely to prevent a unified stance against Washington.
Michael Kugelman, a senior fellow at the Atlantic Council, noted that India cannot afford to issue a statement openly critical of Washington, especially as it finalizes a trade deal with the US. China may also be hesitant to appear to be targeting the US, while the UAE, which hosts US military bases and has faced Iranian attacks, is unlikely to support measures that aid Tehran. The expansion of Brics has increased its global reach, now accounting for 49% of the world's population, 40% of global GDP, and 26% of international trade, but it has also made consensus more challenging.
Trump has been vocal against Brics' efforts to reduce dependence on the US dollar, threatening 100% tariffs on countries backing an alternative currency. Despite these challenges, Brics aims to build on its achievements, such as the New Development Bank and a $100bn contingency reserve arrangement. Leaders are also expected to explore easier cross-border payments in local currencies, a move of particular interest to sanctioned nations like Russia and Iran. The group also seeks to represent developing nations, advocating for reforms in global institutions.
For India, the summit is an opportunity to bolster its leadership aspirations for the Global South. However, navigating China's significant influence within Brics and its stronger presence in developing regions presents a challenge. The success of the summit, particularly for host India, will be measured by its ability to secure a consensus statement, a feat that proved difficult in May when foreign ministers failed to agree on a joint statement due to disagreements over the Iran war.
Bilateral meetings are also on the agenda, including a highly anticipated discussion between Chinese President Xi Jinping and Indian Prime Minister Narendra Modi, as the two countries slowly rebuild ties. Modi is also set to meet Russian President Vladimir Putin, with the war in Ukraine expected to be a key topic. India's growing trade deficits with Russia and China may also be discussed.