The Brics summit hosted by India in Delhi this weekend takes place against the backdrop of US President Donald Trump's tariff threats and the war in Iran. The 11-nation group, representing 49% of world population and 40% of global GDP according to BBC Monitoring analysis, will discuss de-dollarisation and financial cooperation. Divisions among members make an open challenge to Washington unlikely. This article examines the constraints facing the group, its concrete achievements and India's diplomatic objectives.
Why Brics avoids direct criticism of US policies
The expanded Brics group brings together nations with sharply different relations to Washington. India is finalising a trade agreement with the United States and will not accept language that risks upsetting that process. China remains cautious about appearing to use the platform against the US. The UAE, which hosts American military bases and suffered Iranian attacks during recent retaliation, has no interest in statements that could benefit Tehran.
Michael Kugelman of the Atlantic Council noted that any criticism of US policies will stay vague and indirect. Russia and Iran may seek stronger wording, yet the requirement for consensus prevents it. The May foreign ministers' meeting already failed to produce a joint statement over differences on the Iran war, forcing India to issue a chair's summary instead. Kugelman added that Brics has grown more significant through expansion but that this has also made consensus harder, as new members hold widely differing views on the global order.
Trump has repeatedly warned the group against pursuing alternatives to the dollar, including a November 2024 threat of 100% tariffs on any Brics country backing another currency. These external pressures compound the internal reluctance to adopt confrontational language. The group is therefore expected to produce only carefully crafted wording on the United States that avoids direct confrontation.
How the New Development Bank and contingency fund operate
Brics' most tangible institution is the New Development Bank, which has approved billions of dollars for infrastructure projects, many in global south countries. A separate $100 billion contingency reserve arrangement exists to assist members facing financial crises, although it has never been activated. Leaders are expected to discuss easier cross-border payments in local currencies, a measure of direct interest to sanctioned members Russia and Iran.
These mechanisms allow the group to present itself as a practical alternative to Western-led bodies without requiring political confrontation. The bank continues to expand lending while the reserve fund remains a backup instrument. Members are likely to explore further steps to strengthen financial cooperation and may announce concrete measures so the grouping is not dismissed as a mere talk shop. The $100 billion arrangement was created to provide liquidity support during crises, yet its lack of prior use leaves its effectiveness unproven amid current sanctions pressures on several members.
What numerical weight does Brics actually hold
Brics accounts for 49% of the world's population, 40% of global GDP and 26% of international trade. These figures give the group economic significance, yet internal divisions limit its ability to act as a unified bloc. The addition of new members has increased the group's geographic reach while making agreement on contentious issues more difficult.
Trump has repeatedly warned against any move to replace the dollar, including a 2024 statement threatening 100% tariffs on countries that pursue alternatives. This external pressure reinforces the internal reluctance to adopt confrontational language. The group will instead focus on demonstrating its value through existing institutions rather than open challenges to Washington. With 11 members now participating, including invited Saudi Arabia, the collective share of global trade stands at 26 percent, but divergent national interests prevent this numerical weight from translating into coordinated policy statements.
India's goals as summit host
India seeks to strengthen its claim as a voice of the global south. Priorities such as multilateral reform, greater representation for developing countries and freer trade align with the broader Brics agenda. Delhi also wants to deepen ties with members including Ethiopia, Brazil and Indonesia to offset China's stronger presence in Africa and Latin America.
Success will be measured by whether India can secure a consensus statement. The 2023 G20 host experience, when a joint declaration was reached despite divisions over Ukraine, provides a model. Substantive announcements on financial cooperation are also anticipated so the grouping is not dismissed as a talk shop. Kugelman noted that the Modi government has placed strong emphasis on becoming a leader of the global south, yet India's efforts have had limited success in Africa and Latin America where China has been more active. The expanded Brics offers Delhi a chance to build deeper ties with these regions. For India the test lies in balancing its own trade negotiations with Washington against the desire to host a productive gathering that advances shared developing-nation priorities.
Bilateral meetings on the sidelines
Chinese President Xi Jinping's meeting with Prime Minister Narendra Modi will receive close attention as the two countries continue cautious rebuilding of ties. Modi will also meet Russian President Vladimir Putin, with the Ukraine war expected to feature. India's growing trade deficits with both Russia and China are likely to be raised in these discussions.
These bilateral encounters occur alongside the multilateral agenda and offer opportunities for direct diplomacy that the full group format cannot provide. Modi previously made a public appeal for peace during his meeting with Putin last month at the Shanghai Cooperation Organisation summit in Bishkek. Russia welcomed those remarks, interpreting them as constructive rather than critical. The Xi-Modi encounter may touch on border issues and economic cooperation, while the Putin meeting could address energy supplies and defence ties amid ongoing sanctions.
Frequently asked questions
Will Brics issue a statement criticising US tariffs?
No joint statement openly criticising the United States is expected. Divergent interests among members make consensus on such language impossible.
How large is the Brics economy compared with other groups?
The group represents 49% of world population, 40% of global GDP and 26% of international trade according to BBC Monitoring analysis.
What has the New Development Bank achieved?
The bank has approved billions of dollars for infrastructure and development projects, primarily in global south countries.
Can Brics create an alternative to the US dollar?
Leaders will discuss easier local-currency payments, yet no coordinated plan to replace the dollar is under way. Internal divisions and external tariff threats limit progress.
Why did the May foreign ministers' meeting fail to agree a statement?
Differences over the Iran war prevented consensus, leaving India to issue a chair's summary instead.
Key takeaways
- Brics represents 49% of world population and 40% of global GDP yet cannot agree on open criticism of US policies.
- The New Development Bank has approved billions in infrastructure lending while the $100 billion contingency fund remains untested.
- India seeks a consensus statement and concrete financial announcements to demonstrate the group's value.
- Divisions over the Iran war and relations with Washington make strong collective positions unlikely.
- Bilateral meetings between Modi, Xi and Putin will address trade deficits and regional conflicts alongside the main agenda.
Outlook for Brics influence
The Delhi summit tests whether the expanded group can move beyond rhetoric to deliver measurable cooperation. India views the event as an opportunity to reassert its global role after Pakistan's recent diplomatic activity in the Middle East. Washington will monitor outcomes closely, particularly any language on trade or currency issues. The absence of a confrontational statement would reflect the structural limits of the grouping rather than a failure of the host. Kugelman described the stakes as particularly high for India, arguing that the summit is in some ways more important for Delhi as host than for the Brics grouping as a whole.
