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Prime Minister Narendra Modi has left to Brazil to attend the BRICS Summit. The 17th Summit of BRICS countries is being held in the city of Brazil in the city of Rio Ji Janeiro. Modi will be a part of this summit for the 12th time.
PM Modi will also hold bilateral talks with leaders of several member countries of BRICS. This time the agenda of the BRICS Summit will be issues like Artificial Intelligence (AI), climate action, global health.
India can repeat its concerns over cross -border terrorism at the BRICS Summit. Prime Minister Modi’s Brazil tour is 3 days. He will also visit the capital Brasilia on a state tour for two days. Here he will have a bilateral meeting with President Lula de Silva.
What is BRICS? BRICS is a group of countries with 11 major emerging economies. These include Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, United Arab Emirates (UAE), Saudi Arabia and Indonesia.
Its purpose is to promote economic, political and social cooperation among these countries. It initially had 4 countries, called BRIC. The name was given in 2001 by Jim O’Neel, an economist of Goldman Sachs.
He then said that Brazil, Russia, India and China will carry forward the global economy in the coming decades. Later these countries came together and adopted this name.
In 2024, Belarus, Bolivia, Kazakhstan, Cuba, Malaysia, Nigeria, Thailand, Uganda and Uzbekistan are included in BRICS as partner countries.
Possibility of deal on Akash Defense System from Brazil Brazilian Ambassador to India on Prime Minister Modi’s visit to Brazil, Kenneth Felix Hacjinski da Nobrega said on 3 July that India can discuss selling Akash Defense System, Patrol Ships to Brazil. There is a possibility of signing MoU on the management of a Scorpene class submarine between the two countries, as Brazil has also bought French submarines.
The Brazilian ambassador said, ‘PM Modi’s Brazil visit is taking place at a time when trade relations between the two countries have increased significantly. When Prime Minister Modi was in Brazil for the G-20 Summit, Brazilian President Lula de Silva and Prime Minister Modi had set a target of business target of Rs 2000 crore, which will now be emphasized.
Need to make BRICS and travel ahead
Western countries dominated the world’s economy after the fall of the Soviet Union and in the early 2000s. America’s dollars and international institutions such as International Monetary Fund (IMF) made decisions.
Russia, India, China and Brazil came together to reduce this American dominance, which later became BRICS. The purpose of these countries was to strengthen the voice of global South i.e. developing and poor countries.
In 2008-2009 when the western countries were going through an economic crisis. Then the economy of BRICS countries was moving rapidly.
Prior to the economic crisis, western countries were controlling 60% to 80% of the world’s economy, but the economic growth of BRICS countries in the recession showed that they had the ability to grow rapidly and compete with Western countries.
In a meeting held in Yakaterinburgh, Russia in 2009, BRICS countries conceived the multipler world, a multi -polar world, where the economic hold of western countries is weak and all countries get equal rights.
In 2014, BRICs took a big step and created a New Development Bank, which funds for infrastructure. Along with this, a reserve fund was also created so that these countries do not have to depend on the US dollars during the economic crisis.
Why BRICS Summit is being done in Brazil
The BRICS Summit 2025 is being organized on the theme of ‘Global South Cooperation for Global Order’ at Rio de Janeiro, Brazil.
This time, 11 member countries are attending the meeting to be held for the first time. Apart from this, 13 partners are also participating.
Brazilian President Lula de Silva is trying to present BRICS as an inclusive organization rather than opponents of Western countries. The purpose of which is to talk on issues like inclusive development, food security and climate Justice.
BRICS Summit is going to focus on 3 issues in 2025-
- First- Digital Infrastructure and Payment System
- Second- Rules for Artificial Intelligence (AI)
- Third- Trade in local currency in member countries
BRICS is a challenge for western countries
There has been talk of creating its payment system on the lines of Swift payment system in BRICS countries for the last several years. However, no consensus has yet been reached and no concrete steps have been taken.
In 2023, Brazilian President Lula Dr. Silva said during a summit that BRICS organization countries need to create a new currency for trade. He had raised the question why we are trading in dollars.
BRICS countries’ payment systems and the idea of making their currency have always been a matter of concern for western countries, especially America.
US President Donald warned in December last year before the swearing -in that if BRICS do this, he would be charged 100%. Trump described it as a conspiracy to weaken the US dollar.
However, in the midst of all this, India has made its stand clear. Speaking in a forum in Doha, the capital of Qatar in December 2024, Jaishankar said that India has no interest in weakening the US dollar.