As India assumes leadership of BRICS in 2026, the group is caught between divergent aspirations and narratives. For EMDCs, it provides more space, both economic and diplomatic, but few developed countries, particularly the US, view it as an anti-West group, challenging their leadership. The flux in geopolitics adds to the complexity. Meanwhile, classical multilateralism is in a coma, and minilaterals and plurilaterals are the hope to fuel engines of growth and globalisation. India's presidency will navigate choppy waters, add substance to BRICS economic agenda and serve as a bridge between G7 and G20.

BRICS' early success as a group of rapidly growing large EMDCs, seeking inclusive development and reform of global governance, drew the attention of other rising powers. BRICS initially admitted new partners in New Development Bank (NDB) and then in BRICS. Today, it has grown, from the earlier 5, to 11 members and 10 partner countries, and others hope to join the same, now addressed as BRICS+.

The enlarged group has different characteristics as new members are relatively smaller economies. BRICS+ includes 7 members of G20, represents the largest oil-producing nations and has global aspirations. Post expansion, in terms of global share, its GDP has increased by 3%, share of exports has risen by 5%, internal trade has grown by 5%, per-capita GDP growth rate has risen, share of gross fixed capital formation in GDP is at similar levels, and current account balance remains surplus.

Since the 2014 summit in Brazil, the group resolved to deepen economic coordination and institution-building. The decisions for NDB and Contingent Reserve Arrangement (CRA), and trade in local currencies added dynamism and made it more attractive to other developing countries.

NDB had modest capital and funding capacity, but gained in popularity with flexible loans denominated in local currency, absence of IMF-style conditionality and being accessible to non-BRICS members. With new members, NDB is expected to grow in stature and capacity. The Indian presidency could leverage new NDB funding options for private sector through establishment of an NDB structure based in GIFT City, popularise use of Central Bank Digital Currency (CBDC) and new electronic settlements.

BRICS trade agenda highlighted policy coordination for trade and development, and reform of multilateralism. However, reform of WTO and integration of BRICS with regional arrangements had been difficult. Efforts to set up a BRICS group within WTO, trade facilitation, resolve intra-BRICS disputes that are stuck at WTO, and COP financing mechanisms can advance the trade agenda. The use of AI tools can help BRICS countries to modernise and integrate trade policy.

BRICS decision for trade in local currencies had a slow start but picked momentum in recent times. Russia estimates that 90% of its intra-BRICS trade is in local currency; China and India have also made advances in this area. To some extent, Western sanctions have also prompted a switch to local currency transactions and non-SWIFT settlements.

Alternate settlement mechanisms based on digital means for cheaper and faster transactions have popularised BRICS local currencies and helped them go international. These include SPFS of Russia, CIPS of China, UPI of India and PIX of Brazil. BRICS Pay has potential as an interoperable and decentralised system to link national networks. It is designed as a cross-border financial messaging system that enables transactions between members using national currencies. It includes encryption, distributed consensus nodes, multi-factor authentication and capacity to process up to 20,000 messages per sec. It can spur reform in global governance towards a multipolar financial system.

Meanwhile, BRICS countries have also seen a spurt in swap arrangements, growth of CBDC, adjustments in reserve currency holdings and advancing of development assistance in local currency. BRICS initiatives currently under discussion that could impact trade and development include modalities for ecommerce and digital trade, a common logistics platform to integrate intra-BRICS supply chains, and collaboration on investment-technology-innovation.

BRICS is at a crucial juncture, reconciling internal consolidation and expansion plans, and engagement with the Western world. BRICS must counter false narratives that suggest it is anti-West or promotes de-dollarisation. Prudent strategy demands BRICS maintain consensus-driven decision-making within the group and establish collaborations with the West for solutions in a globalised world.

The writer is former BRICS sherpa, GoIThis article is part of an expert series on trade policy curated exclusively for ET by CUTS International