Trade, WTO reform, local-currency payments, Palestine, global governance and India’s strategic partnerships dominate the 18th BRICS Summit
The 18th BRICS Summit, held in New Delhi on 12–13 September 2026, marked an important moment in the evolution of the BRICS grouping. Held under India’s chairship with the theme “Building for Resilience, Innovation, Cooperation and Sustainability,” the summit sought to strengthen cooperation among emerging economies while giving greater representation to the Global South in global decision-making.
The summit concluded with the adoption of the New Delhi Declaration, which covered international security, global governance, trade, finance, technology, sustainable development and several major geopolitical issues.
BRICS: From Economic Grouping to Global Political Platform
BRICS was originally formed by Brazil, Russia, India and China (BRIC). The first BRIC summit was held in Yekaterinburg, Russia, in 2009. South Africa joined in 2011, adding the letter “S”.
The major expansion came after the 2023 Johannesburg Summit, when Egypt, Ethiopia, Iran, Saudi Arabia and the UAE were invited to join. Indonesia subsequently became a full member in 2025. BRICS therefore has 11 full members: Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, Saudi Arabia, the UAE and Indonesia.
Important for Exams
BRICS is not a treaty-based international organisation. It is an informal political and diplomatic coordination forum. It has no permanent secretariat, constitutive treaty or independent budget, and decisions are generally based on consensus.
Its traditional areas of cooperation are grouped under three broad pillars:
- Political and Security
- Economic and Financial
- People-to-People/Cultural Cooperation
1. New Delhi Declaration: A Voice for the Global South
One of the most important messages emerging from the summit was the demand for greater representation of developing countries in global institutions.
Prime Minister Narendra Modi argued that the Global South is often at the forefront of global crises but has inadequate representation in international decision-making. He called for transforming the existing “pyramid of privilege” into a “platform of partnership.”
The declaration therefore supported reforms in institutions such as:
- United Nations
- UN Security Council
- International Monetary Fund
- World Bank
- World Trade Organization
The larger objective is to make global governance more representative, democratic and reflective of contemporary economic realities.
Exam Angle
This connects directly with the UPSC/SSC theme:
Reform of Global Governance Institutions
India has long advocated greater representation for developing countries in international institutions, particularly the UN Security Council and international financial institutions.
2. BRICS and WTO Reform
The New Delhi Declaration strongly supported reform of the World Trade Organization (WTO).
BRICS called for a WTO that remains:
- open
- transparent
- inclusive
- predictable
- non-discriminatory
- rules-based
It also supported restoring a fully functional two-tier WTO dispute-settlement mechanism, including the appointment of members to the WTO Appellate Body.
The declaration criticised the increasing use of unilateral tariffs and non-tariff barriers, arguing that protectionist policies can disrupt global supply chains and disproportionately affect developing economies.
Important Terms
Tariff: Tax imposed on imported goods.
Non-Tariff Barrier (NTB): Trade restriction other than a tariff—for example, quotas, technical standards or licensing requirements.
WTO: Established in 1995, replacing the GATT framework.
WTO Dispute Settlement: Mechanism through which WTO members can challenge trade measures they believe violate WTO rules.
3. Support for Iran and Ethiopia’s WTO Membership
A particularly important development was BRICS’ support for the WTO accession bids of Iran and Ethiopia.
Both countries have been seeking deeper integration into the multilateral trading system. BRICS’ support reflects its broader objective of bringing developing and emerging economies into global economic institutions.
Prelims Point
Remember:
Iran + Ethiopia → BRICS supports their WTO accession bids.
This is a potentially useful statement-based question for competitive examinations.
4. Local-Currency Trade and Cross-Border Payments
Another major economic issue was the effort to make cross-border payments more efficient.
The BRICS Payment Task Force (BPTF) has been examining interoperability between payment and messaging systems and ways of facilitating trade settlements using BRICS national currencies.
The objective is to make international transactions:
- faster,
- cheaper,
- more resilient,
- less dependent on traditional financial channels.
However, it is important not to confuse this initiative with the creation of a single BRICS currency.
Exam Trap
BRICS local-currency payment initiative ≠ BRICS common currency.
The current focus is on payment interoperability and local-currency settlements, not the immediate creation of a common currency.
5. BRICS and the Palestine Issue
The New Delhi Declaration also addressed the continuing conflict in West Asia.
BRICS expressed support for a sovereign Palestinian state and opposed the displacement of Palestinians from Gaza. It also referred to the legal proceedings at the International Court of Justice (ICJ) involving South Africa and Israel.
The declaration called for humanitarian assistance and reaffirmed the importance of international law and diplomatic solutions.
Important for International Relations
A useful connection for examinations is:
South Africa → instituted proceedings against Israel at the ICJ concerning the Genocide Convention.
The case is formally known as South Africa v. Israel.
The ICJ is the principal judicial organ of the United Nations, headquartered in The Hague, Netherlands.
6. BRICS Condemns Unilateral Economic Measures
The declaration criticised unilateral coercive measures, including economic and secondary sanctions that are not authorised by the UN Security Council.
BRICS argued that such measures can have consequences for:
- food security,
- health,
- development,
- vulnerable populations,
- international trade,
- supply chains.
This reflects a broader BRICS argument that the international economic system should become less vulnerable to unilateral economic pressure.
7. Focus on MSMEs
An important but potentially overlooked component of the New Delhi Declaration was its emphasis on Micro, Small and Medium Enterprises (MSMEs).
BRICS recognised that lack of affordable finance is one of the major barriers preventing MSMEs from participating in international trade and global value chains.
The grouping welcomed principles for improving credit assessment of export-oriented MSMEs and supported innovative financing mechanisms. It also welcomed the Jaipur Consensus to examine an invoice-discounting mechanism for BRICS members.
Why is this important?
MSMEs are major contributors to:
- employment,
- exports,
- entrepreneurship,
- regional development,
- innovation.
Greater access to trade finance can allow smaller businesses to become part of Global Value Chains (GVCs).
8. India-UAE Partnership: Beyond BRICS
The BRICS Summit also became an important platform for India’s bilateral diplomacy.
Prime Minister Narendra Modi met Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, on the sidelines of the summit.
The two sides discussed cooperation in areas including:
- defence
- AI
- space
- critical minerals
- energy
- food security
- connectivity
They also discussed strengthening the India-Middle East-Europe Economic Corridor (IMEC).
What is IMEC?
The India-Middle East-Europe Economic Corridor was announced on the sidelines of the G20 Summit in New Delhi in September 2023.
It is designed to improve connectivity between India, the Middle East and Europe through transport and economic links.
Exam Connection
IMEC → India + Middle East + Europe
It is strategically important because it can improve:
- trade connectivity,
- logistics,
- supply chains,
- energy cooperation,
- digital connectivity.
9. UAE’s $11.5 Billion Investment in Odisha
One of the major economic developments highlighted during the India-UAE engagement was the UAE-based International Holding Company (IHC)’s proposed investment of US$11.5 billion in an integrated greenfield aluminium project in Odisha.
The project is expected to strengthen Odisha’s position as a major aluminium manufacturing hub.
The project involves an integrated aluminium ecosystem, including refining, smelting, power and downstream manufacturing.
Exam Relevance
This connects three important themes:
UAE → Foreign Investment → Odisha → Aluminium Industry
Odisha is already a major centre of India’s aluminium and bauxite industry.
10. India-Malaysia Relations
Prime Minister Modi also met Malaysian Prime Minister Anwar Ibrahim during the summit.
India and Malaysia discussed cooperation in:
- trade and investment,
- defence and security,
- semiconductors,
- infrastructure,
- digital economy,
- energy,
- fintech,
- education,
- tourism.
Malaysia also conveyed its concurrence regarding the establishment of an Indian Consulate General in Kota Kinabalu, Sabah.
This is significant for India’s wider Act East Policy and its engagement with ASEAN.
Exam Connection
Malaysia → ASEAN → Act East Policy → Indo-Pacific
11. India and the Wider BRICS Economic Agenda
The declaration also placed emphasis on Global Value Chains (GVCs).
BRICS wants supply chains to become:
- resilient,
- efficient,
- predictable,
- secure,
- inclusive.
It also highlighted digitalisation of trade documentation and greater cooperation in infrastructure, technology and industrial capacity.
This is particularly relevant after the disruptions caused by geopolitical conflicts, pandemics and trade tensions.
12. Energy Security and Climate Change
The New Delhi Declaration adopted a pragmatic position on energy transition.
BRICS recognised the continuing importance of fossil fuels, particularly for developing and emerging economies, while supporting a transition towards cleaner energy.
It emphasised:
- energy security,
- renewable energy,
- critical minerals,
- resilient energy infrastructure,
- technological cooperation,
- a just and equitable energy transition.
The declaration also opposed unilateral environmental trade measures that developing countries believe could act as disguised protectionism.
Important Term: CBAM
CBAM = Carbon Border Adjustment Mechanism
It is an EU mechanism intended to put a carbon price on certain imports entering the European market.
For competitive exams:
CBAM → European Union → Carbon emissions → Border adjustment → International trade
13. New Development Bank — BRICS Bank
Another important institution associated with BRICS is the New Development Bank (NDB).
It was established in 2015 and is headquartered in Shanghai, China.
Its purpose is to finance infrastructure and sustainable-development projects in BRICS and other emerging economies.
The New Delhi Declaration supported further expansion of NDB membership and highlighted its role in development finance.
Quick Fact
New Development Bank
- Established: 2015
- Headquarters: Shanghai
- Also called: BRICS Bank
- Initial members: Brazil, Russia, India, China and South Africa
What Does the New Delhi Summit Mean for India?
For India, the summit offered an opportunity to pursue multiple objectives simultaneously.
1. Global South leadership
India positioned itself as a bridge between developing countries and established global institutions.
2. Strategic autonomy
India continued engaging with Russia, China, Iran and the UAE while maintaining partnerships with Western countries.
3. Economic diplomacy
Trade, investment, local-currency payments and supply chains were central to India’s BRICS agenda.
4. Technology diplomacy
AI, digitalisation, innovation and critical technologies emerged as increasingly important areas of cooperation.
5. Connectivity
IMEC and other infrastructure initiatives can strengthen India’s role in global supply chains.
Challenges Before BRICS
Despite its growing influence, BRICS faces several challenges.
The members have different political systems, economic structures and foreign-policy priorities. India and China, for example, have unresolved strategic and border issues, while members such as Iran and the UAE can have sharply different interests on West Asian issues.
Therefore, the biggest challenge is converting political declarations into practical implementation.
The New Delhi Summit itself demonstrated this balancing act: reaching consensus among countries with different geopolitical interests required considerable diplomatic negotiation.
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