India and BRICS: Championing Regional Economic Collaboration

by

PREVIOUS YEAR QUESTION PAPERS

Describe India’s role in BRICS towards the growth of regional economic cooperation. (HPAS Mains Question Paper 2022 – GS 2, Q.25)

BRICS stands for Brazil, Russia, India, China, and South Africa, the five major emerging economies. India has been a critical member of the BRICS group, promoting regional economic cooperation and development.

It is a group of five major emerging economies that joined forces in 2009 to improve economic, political, and cultural cooperation. The BRICS countries account for approximately 42% of the global population and about 23% of global GDP.

The BRICS group was formed to promote cooperation and collaboration among emerging economies, as well as to strengthen their collective bargaining power on the global stage. The BRICS group’s key areas of cooperation include trade and investment, infrastructure development, energy, climate change, and financial governance.

India has been an active member of the BRICS group, taking part in a variety of initiatives aimed at strengthening economic ties and encouraging regional cooperation. 

Some of the key ways in which India has contributed to the expansion of BRICS regional economic cooperation are as follows:

  • Development of the New Development Bank (NDB): India was instrumental in establishing the NDB, a BRICS-led multilateral development bank. The NDB finances infrastructure and sustainable development projects in BRICS and other emerging economies. With a 20% stake in the NDB, India has been a significant contributor.
  • Trade and investment promotion: India has been an active participant in promoting trade and investment within the BRICS group. India has sought to strengthen its trade and investment ties with the other BRICS countries, as well as to encourage greater cooperation in areas such as technology transfer, agriculture, and energy.
  • Financial cooperation: India has also played an essential role in strengthening economic cooperation among the BRICS countries. India has participated in discussions about currency swaps, international financial governance, and creating a BRICS common currency.
  • Energy and climate change collaboration: India has worked with other BRICS countries on energy and climate change issues. India has supported renewable energy initiatives and collaborated with other BRICS countries to address climate change and reduce greenhouse gas emissions.

India’s contribution to BRICS:

  • Economic development and growth: India’s economy has been rapidly growing, and it is one of the world’s fastest-growing economies. With its large and growing market, skilled workforce, and strong manufacturing sector, India has made significant contributions to the BRICS group. Within the BRICS group, India has taken an active role in promoting economic growth and development.
  • Multilateral institutions: Within the BRICS group, India has been a strong advocate for the establishment of multilateral institutions. India was instrumental in forming the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA), which aim to promote infrastructure development and provide a safety net for member countries during an economic crisis.
  • Trade and investment: Within the BRICS group, India has actively promoted trade and investment. India has signed several trade treaties with other BRICS countries and has worked to increase trade and investment flows among members. India has also pushed for increased cooperation in technology transfer, agriculture, and energy.
  • Climate change and sustainability: India has been a vocal proponent of sustainable development, collaborating with other BRICS countries to address climate change and reduce greenhouse gas emissions. India has supported renewable energy initiatives and collaborated with other BRICS countries to develop sustainable infrastructure and transportation systems.

The BRICS group has encouraged greater cooperation and collaboration among emerging economies. The organization has established institutions such as the New Development Bank and the Contingency Reserve Agreement, which have provided funding and assistance for infrastructure and sustainable development projects. The BRICS countries have also collaborated to strengthen trade ties and address global issues such as climate change and financial governance.

Google search