What is BRICS and why is India central to the 2025 Brazil Summit? Here's everything you need to know

Prime Minister Narendra Modi was welcomed by Brazilian President Luiz Inácio Lula da Silva at Rio de Janeiro’s Museum of Modern Art on Sunday, marking the start of the 17th BRICS Leaders Summit. The three-day meeting comes at a time of intensified global uncertainty, marked by economic decoupling, US tariff threats under Donald Trump’s renewed candidacy, and continuing geopolitical instability, including the Israel-Hamas conflict. This visit is Modi’s fourth to Brazil, and he will also make a State Visit to Brasília, the first by an Indian Prime Minister in nearly 60 years. The theme for this year’s Summit is ‘Strengthening Global South Cooperation for Inclusive and Sustainable Governance'. India is also set to assume the BRICS chairship in 2026. Taking a closer look, let's understand what exactly is BRICS? Why does it matter globally?

What Is BRICS and Why Does It Matter?

BRICS is an intergovernmental coalition of major emerging economies Brazil, Russia, India, China, and South Africa, established to represent the interests of the Global South in a world dominated by Western-led institutions. The coalition is not a formal organization. Originally coined as 'BRIC' by economist Jim O’Neill in 2001, it became a political forum in 2006, with South Africa joining in 2011. In 2023, the group expanded to include Egypt, Ethiopia, Iran, Saudi Arabia, the UAE, and Indonesia, reflecting a push for broader geopolitical influence.

The bloc does not function as a formal organisation, it has no charter, secretariat, or binding rules. However, it cooperates on key issues like economic development, financial sovereignty, climate change, and reform of global institutions like the UN and IMF. Its main financial arms include the New Development Bank (NDB), which has approved over $39 billion in infrastructure loans, and a $100 billion Contingent Reserve Arrangement to support members during currency shocks. Partner countries such as Nigeria, Kazakhstan, and Vietnam now also attend summits under a new classification.

BRICS vs G7 and NATO: Who Holds More Power?

BRICS nations account for nearly 40 per cent of global GDP (as per PPP) and represent around half the world’s population, giving the bloc significant economic and demographic weight. Members also control substantial natural resources and energy supplies. However, the G7—comprising the US, UK, Germany, France, Japan, Italy, and Canada, remains more advanced in per capita income, technological capacity, and institutional influence, especially via the IMF, World Bank, and NATO.

NATO, on the other hand is very different from BRICS, it is a military alliance with a collective defence framework and a combined military expenditure far exceeding any other bloc. BRICS, by contrast, is focused on economic cooperation and trade, not military coordination.

India’s Role at the Brazil Summit

At the 2025 summit in Rio, Prime Minister Narendra Modi is advancing India's core agenda, which is a unified stance against terrorism, support for climate finance, enhanced AI collaboration, and promotion of trade in national currencies to reduce dollar dependence. India’s position in BRICS is crucial, it is the world’s most populous country and the fastest-growing major economy. As a democracy, India also acts as a balancing force to China’s influence in the bloc, while maintaining ties with the West.

India’s leadership in the NDB and its focus on equitable development underline its strategic importance. “As a founding member, India remains committed to BRICS as a vital platform for cooperation among emerging economies,” the PM had said earlier this week. “Together, we strive for a more peaceful, equitable, just, democratic, and balanced multipolar world order.”