BRICS and New Development Bank - Origin, Summits, NDB, Expansion, and Significance for India

BRICS and New Development Bank for UPSC

1. Why BRICS and NDB Matter for UPSC

For UPSC, BRICS and the New Development Bank (NDB) matter because they sit at the intersection of International Relations (GS2), global governance reforms, development finance (GS3), and India's strategic and economic interests. In the last decade, BRICS has moved beyond being just a discussion platform and has started shaping practical cooperation in areas like development financing, trade coordination, technology, climate transition, health, and payment systems.

BRICS is also important because it is a Global South coordination forum that debates issues such as representation in the UN system, reforms of international financial institutions, and fairer development pathways. It does not function like the UN or WTO with a formal treaty structure; rather, it works through annual summits, consensus-based decisions, and a rotating chairmanship.

The NDB is the most visible institutional outcome of BRICS. It was created to mobilize resources for infrastructure and sustainable development projects in member countries and other emerging markets and developing countries. Its growing project portfolio and its push for diversified funding (including local currency funding in different markets) make it highly relevant for questions on development finance and global economic governance.

From a UPSC perspective, you should prepare BRICS and NDB with two lenses:

• Prelims lens: members, dates, summits, headquarters, institutions (NDB, CRA), and key facts.
• Mains lens: India's interests, Global South leadership, multipolarity, global governance reforms, and the limits and future direction of BRICS.

2. Key Definitions and Quick Exam Facts

Quick facts to remember:

• BRICS does not have a constitutive treaty, its own budget, or a permanent secretariat.
• BRICS works through a rotating presidency and annual summits; decisions are based on consensus.
• As per the BRICS official portal (Brazilian chairship content), BRICS currently has 11 members and 10 partner countries.
• NDB's "At a Glance" figures show USD 39.0 billion financing approved across 120 projects (figures shown with exchange rates as of 31 December 2024).

3. Origin and Evolution of BRICS: From an Idea to a Forum

The term "BRIC" originally became popular as a way to describe high-growth emerging economies. Over time, this idea moved from economics into diplomacy. The first formal summit was held in 2009 in Yekaterinburg (Russia) as a BRIC summit, and the grouping gradually developed into a regular annual leaders' meeting.

In 2011, South Africa joined, and the acronym became BRICS. This was significant because it expanded the grouping's geographic representation and strengthened its identity as a broader emerging-market platform.

As global politics and the world economy changed after the 2008 financial crisis, BRICS countries increasingly coordinated positions on:

• Reform of IMF and World Bank governance to reflect greater weight of emerging economies
• Support for multilateral trade and opposition to protectionism
• Calls for UN reform, including Security Council reform
• South-South cooperation in development, technology, and capacity-building

The evolution of BRICS is best understood in phases:

• Phase 1 (2009–2013): establishing the forum, focusing on global financial crisis response, governance reforms, and beginning serious discussions on a development bank.
• Phase 2 (2014–2019): institution-building with NDB and the Contingent Reserve Arrangement (CRA), and widening cooperation areas.
• Phase 3 (2020–2023): responding to COVID-19 and global disruptions, with stronger focus on resilience, digital economy, and supply chains.
• Phase 4 (2024 onwards): expansion, partner-country category, and stronger "Global South" agenda with more members and wider outreach formats.

4. Nature, Principles, and Working Mechanism of BRICS

BRICS is often misunderstood as a "treaty-based organization." In reality, BRICS is an informal coordination mechanism. It does not have a constitutive treaty, a permanent secretariat, or an independent budget like a formal international organization.

How does it function?

• Rotating Presidency: the chair rotates among members, generally following the acronym order. The chair sets priorities, hosts meetings, and convenes the annual summit. With new members, rotation rules may evolve.
• Consensus-based decisions: decisions and major outcomes are adopted by consensus, which protects sovereignty but can slow decision-making.
• Three pillars: politics and security; economy and finance; and people-to-people exchanges.

Why does this matter for UPSC? Because many Mains questions test whether you can explain why BRICS is influential despite being informal. The correct answer is: BRICS gains influence from the combined weight of its members, coordinated political messaging, and the practical role of institutions like NDB, even without a treaty structure.

5. Membership, Partners, and BRICS Outreach/Plus

Current BRICS members (official listing): Brazil, Russia, India, China, South Africa, Saudi Arabia, Egypt, United Arab Emirates, Ethiopia, Indonesia, and Iran.

Partner countries (official listing): Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Nigeria, Thailand, Uganda, Uzbekistan, and Vietnam.

BRICS also uses other engagement formats:

• BRICS Outreach: meeting between BRICS members and countries from the geographic region of the current chair, invited for that year.
• BRICS Plus: meeting between BRICS members and invited countries beyond the chair's region (broader outreach).

The following table is a clean Prelims-ready snapshot:

6. BRICS Summits: High-Yield Timeline and Turning Points

For UPSC, do not try to memorize every detail of every summit. Instead, focus on the turning points: first summit, entry of South Africa, decision to create NDB and CRA, operationalization of NDB, expansion decisions (2023), creation of partner category (2024), and the first summit after expansion (2024 and 2025).

Key turning points from official BRICS summit history:

• 2009 Yekaterinburg: first BRIC summit; focus on global financial crisis and governance reform.
• 2011 Sanya: South Africa's entry and BRICS identity consolidation.
• 2012 New Delhi: first explicit mention of creating a BRICS development bank.
• 2014 Fortaleza: signing of the Agreement establishing NDB (Shanghai) and treaty establishing CRA.
• 2016 Goa: NDB and CRA operational progress; NDB loans highlighted.
• 2023 Johannesburg: decision on major expansion and development of partner-country category mandate.
• 2024 Kazan: first summit with new members; partner-country status created and criteria finalized.
• 2025 Rio de Janeiro: summit hosted in Brazil on 6–7 July 2025, under the Brazilian chairship.

High-yield summit table (focus on what UPSC loves: "what happened and why it matters"):

7. Core Areas of Cooperation: The Three Pillars

7.1 Politics and Security

BRICS members coordinate on political issues such as regional conflicts, counter-terrorism cooperation, UN reforms, and a shared preference for a multipolar world. Unlike military alliances, BRICS does not have collective defence commitments. Its strength is diplomatic coordination, joint statements, and pushing reforms in global governance.

7.2 Economy and Finance

This is the most practical pillar and the one that creates "exam-ready" content. It includes:

• Development finance through NDB
• Financial stability and liquidity safety through CRA
• Trade facilitation and investment cooperation through strategies like BRICS Economic Partnership
• Discussions on payment systems and the use of local/national currencies in trade and finance (relevant in the context of global sanctions, supply disruptions, and currency volatility)

7.3 People-to-People (P2P)

This includes academic, cultural, youth, and sports exchanges. While less prominent in exams, P2P cooperation builds long-term relationships and soft power.

8. New Development Bank: Origin, Mandate, and Governance

The NDB was the biggest institutional milestone of BRICS. The agreement establishing NDB was signed at the 2014 Fortaleza summit, and it was established in 2015 by BRICS countries as a multilateral development bank for infrastructure and sustainable development.

Core mandate: mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging markets and developing countries.

Membership openness: NDB membership is open to UN members as per its Articles of Agreement, and the bank can have borrowing and non-borrowing members.

NDB focus areas (high-yield): clean energy and energy efficiency, transport infrastructure, water and sanitation, environmental protection, social infrastructure, and digital infrastructure.

Why NDB is different in exam framing: It is often described as part of the broader push for a more balanced global financial architecture, complementing (not necessarily replacing) existing multilateral development banks. In answers, avoid extreme claims like "NDB was created to destroy the World Bank." A balanced line works better: "NDB provides additional development finance options and reflects Global South demand for more voice and choice in development financing."

9. NDB Membership, Portfolio, and What It Means for India

NDB members and admission status (official listing):

• Founding members (2015): Brazil, Russia, India, China, South Africa.
• New members (completed listed): Bangladesh (16 Sept 2021), UAE (4 Oct 2021), Egypt (20 Feb 2023), Algeria (19 May 2025).
• Prospective members (admitted but membership becomes official after accession instrument deposit): Uruguay, Uzbekistan, Colombia, Ethiopia.

This is a key UPSC point: NDB's membership is not limited to the five founding BRICS countries, and it can expand based on its rules.

Portfolio scale (official "At a Glance"): NDB shows total financing approved of USD 39.0 billion across 120 projects. The same official snapshot also shows expected development results for selected projects (renewable energy capacity, housing units, transport, water infrastructure, etc.).

For India, NDB matters in three ways:

• Additional development finance: it can fund infrastructure and sustainability projects that align with India's growth and climate goals.
• Project diversification: NDB supports multiple sectors (transport, water, clean energy, digital), which helps India avoid over-dependence on one funding source.
• Voice and governance: India is a founding member and therefore has an institutional stake in how development finance norms evolve.

In Mains answers, you can add an India-focused line like: "NDB complements India's infrastructure push and supports climate-smart and resilient projects, while also reflecting India's preference for multipolar and inclusive global economic governance."

A quick comparison table can strengthen your Mains answer:

10. BRICS Financial Agenda Beyond NDB: CRA, Payments, and Currency Debate

In UPSC answers, BRICS is not complete if you mention only NDB. You should also know about the Contingent Reserve Arrangement (CRA) and the ongoing discussions on payment mechanisms.

10.1 Contingent Reserve Arrangement (CRA)

CRA was signed as a treaty alongside NDB at the 2014 Fortaleza summit. It is designed as a liquidity support framework to help members during short-term balance of payments pressures, improving financial stability for members during external shocks.

Exam use: In Mains, you can write: "NDB addresses long-term development finance needs, while CRA addresses short-term liquidity shocks." This shows conceptual clarity.

10.2 Payment Systems, Local Currency Use, and CBDC Linkage

BRICS has repeatedly discussed ways to make trade and payments smoother among members, including greater use of national currencies and payment platforms. The Ufa 2015 summit text in official BRICS history notes discussion on expanding use of national currencies in transactions.

In recent policy discussions, issues like interoperability of payment systems and digital currency experimentation have gained attention. A Reuters report (January 2026) described an Indian central bank proposal to create linkages between BRICS central bank digital currencies to facilitate cross-border payments, suggesting that such ideas could be discussed in the 2026 BRICS context.

UPSC balance point: Do not oversimplify this as "BRICS will replace the dollar tomorrow." A better line is: "BRICS discussions indicate a search for diversified settlement options and stronger financial autonomy, but practical implementation depends on interoperability, governance rules, and members' economic realities."

11. Expansion of BRICS: Drivers, Process, and Implications

BRICS expansion is the biggest change in the grouping's recent history. The 2023 Johannesburg summit decided on expansion, and the 2024 Kazan summit became the first summit to include new members, with a new "partner country" category created.

11.1 Why did expansion happen?

• Greater Global South representation: more members means stronger claim that BRICS reflects emerging economies and developing countries.
• Geoeconomic weight: expansion brings in countries with strategic locations, energy resources, and regional influence.
• Demand for reform: many countries want reforms in global governance, financial systems, and decision-making.

11.2 How does BRICS manage expansion without losing control?

To avoid uncontrolled enlargement, BRICS introduced a partner category. Partners can join certain meetings and can be integrated gradually, while full membership decisions remain consensus-based. Official BRICS information explains this two-category structure (members and partners) and lists the partner countries.

11.3 Current expansion picture (Prelims-ready)

Members: 11 countries.

Partners: 10 countries.

Key moment: Vietnam's admission as a partner country was publicly stated by Brazil's chairship, adding a tenth partner country.

Strategic implication for UPSC: Expansion increases political relevance but also increases coordination complexity. In Mains, you can write both sides to show maturity.

12. Significance of BRICS for India

India's engagement with BRICS is driven by a mix of strategic autonomy, economic interests, and its desire for a reformed and more representative global order. You can present significance under four heads:

12.1 Global Governance and Multipolarity

BRICS provides a platform where India can push for reforms in multilateral institutions and highlight the need for more representation of emerging economies. Even in summit histories, themes repeatedly emphasize UN-centered multilateralism and the need for reform.

12.2 Development Finance and Infrastructure

NDB gives India an additional channel of development financing aligned with infrastructure and sustainability priorities. It also supports a broader argument that development finance should be more responsive to Global South needs.

12.3 Strategic Space (Not an Alliance, But a Forum)

BRICS is useful because it is not a military alliance. India can engage without binding commitments, preserve strategic autonomy, and still coordinate on selected issues like development, technology, health, and climate.

12.4 India's 2026 BRICS Presidency

India will assume the BRICS Presidency in 2026. India's chairship theme is "Building for Resilience, Innovation, Cooperation and Sustainability," as announced in an official MEA press release and reflected on the BRICS India 2026 portal.

Exam angle: If a Mains question asks "What can India do in BRICS?", you can connect India's 2026 chairship priorities to practical deliverables such as resilient supply chains, tech cooperation, digital public infrastructure sharing, climate finance, and inclusive governance reforms.

13. Challenges and Criticisms: What Limits BRICS and NDB?

Strong answers must mention limitations. BRICS has influence, but it also faces structural and political constraints:

13.1 Diversity and Internal Differences

BRICS members differ widely in economic structures, political systems, foreign policy alignments, and regional priorities. Since BRICS decisions are consensus-based, internal differences can reduce speed and ambition.

13.2 Lack of Formal Institutional Structure

Because BRICS does not have a treaty-based organization structure or permanent secretariat, follow-through depends heavily on the political will of the chair and members. This is both a strength (flexibility) and a weakness (implementation gaps).

13.3 Expansion: More Voice, More Complexity

Expansion strengthens representation but increases coordination cost. Partner-country modality is one solution, but it can also create "two-tier" participation debates if not managed carefully.

13.4 NDB Constraints

NDB has grown, but it still remains much smaller than the largest traditional MDBs. Its ability to scale lending depends on capital, credit ratings, global borrowing conditions, and risk management. The bank itself highlights its funding strategy and need for sufficient resources and liquidity management.

13.5 Geopolitics and Sanctions Environment

Geopolitical tensions can complicate cooperation, especially where members have competing strategic goals. In such an environment, BRICS can be pulled between being a development cooperation platform and being seen as a geopolitical counterweight. UPSC expects balanced writing: state the reality without turning it into ideological commentary.

14. Way Forward and UPSC Answer Framework (With PYQs)

In the exam, the best answers are structured, balanced, and example-driven. Use the following framework:

• Start: Define BRICS and state its relevance (Global South coordination + governance reform + development finance through NDB).
• Explain evolution: highlight the turning points (2009 first summit, 2011 South Africa, 2014 NDB/CRA, 2023 expansion decision, 2024 partner category, 2025 consolidation).
• Discuss significance: for India (strategic autonomy, reforms, development finance, Global South leadership).
• Critically evaluate: diversity, consensus limits, geopolitics, and NDB scale constraints.
• Conclude: pragmatic way forward (deliverables, institution-building, trust-building, and issue-based cooperation).

What can be a realistic "way forward" agenda?

• Deliverable-based cooperation: focus on 3–4 high-impact projects each year (infrastructure finance, clean energy transition, digital infrastructure, health cooperation).
• Strengthen NDB credibility: transparent project outcomes, strong risk management, and balanced sectoral spread to build long-term trust.
• Deepen trade facilitation: reduce non-tariff barriers, improve logistics connectivity, and support MSME participation across member markets.
• Build payment interoperability carefully: explore technical pilots, common standards, and governance rules rather than making over-ambitious political claims.
• Manage expansion through partners: integrate partners gradually, maintain coherence, and avoid dilution of decision-making.

How to write a 150–200 word Mains conclusion line (ready-to-use style):

BRICS has evolved from a consultative forum of emerging economies into a broader Global South coordination platform with tangible institutions like the New Development Bank and the CRA, and now a partner-country modality. For India, BRICS supports strategic autonomy, strengthens the demand for global governance reforms, and provides an additional channel of development finance aligned with infrastructure and sustainability priorities. At the same time, BRICS faces limitations due to internal diversity, consensus-based decision-making, and geopolitical pressures. The way forward lies in focusing on deliverable-based cooperation, strengthening NDB's credibility and project outcomes, managing expansion through partner integration, and building practical financial and technological cooperation that enhances resilience, innovation, and inclusive growth.