Indonesia joined BRICS
12 Jan, 2025
Indonesia has officially joined BRICS as the 11th member effective from January 2025
Significance of Indonesia’s joining
- As the world's fourth-most populous country, Indonesia brings considerable economic strength and influence to the table.
- India, as a founding member of BRICS, can benefit significantly from Indonesia's membership.
Economic Benefits
1. Increased trade: Indonesia is the largest economy in Southeast Asia, offering India a substantial market for its goods and services.
2. Investment opportunities: Indonesian companies can invest in India's growing economy, particularly in sectors like infrastructure, manufacturing, and services.
3. Diversified trade relationships: With Indonesia in BRICS, India can reduce its dependence on traditional trade partners and develop new relationships with Southeast Asian nations.
Strategic Benefits
1. Enhanced regional influence: India's influence in Southeast Asia and the Indian Ocean region can increase with Indonesia's membership, counterbalancing China's growing presence.
2. Cooperation on regional issues: India and Indonesia can collaborate on regional security, counter-terrorism, and maritime cooperation, promoting stability in the Indo-Pacific.
3. Multilateral cooperation: BRICS can serve as a platform for India to engage with Indonesia and other member states on global issues like climate change, sustainable development, and international governance.
Energy and Resource Benefits
1. Energy cooperation: Indonesia, with its significant energy resources, can collaborate with India on energy security, renewable energy, and energy efficiency.
2. Resource sharing: India can access Indonesia's natural resources, such as coal, palm oil, and minerals, while Indonesia can benefit from India's expertise in areas like IT and pharmaceuticals.
Brief History of BRICS
Early Beginnings (2006-2009)
1. Conceptualization: The concept of BRICS was first proposed by Goldman Sachs economist Jim O'Neill in a 2001 research paper.
2. First Meeting: The first meeting of BRICS countries took place in 2006 on the sidelines of the G8 Summit in St. Petersburg, Russia.
Expansion and Consolidation (2009-2014)
1. Formal Establishment: BRICS was formally established in 2009 with the Yekaterinburg Summit in Russia.
2. South Africa Joins: South Africa joined the group in 2010, making it a five-member alliance.
3. New Development Bank: In 2014, BRICS countries established the New Development Bank (NDB) to finance infrastructure and sustainable development projects.
Strengthening Cooperation (2015-Present)
1. Contingent Reserve Arrangement: In 2015, BRICS countries established the Contingent Reserve Arrangement (CRA) to provide liquidity support to member countries.
2. Expansion Plans: In 2022, BRICS leaders agreed to expand the group, inviting new members to join.
3. New Members Join: In 2024, five new members (Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates) officially joined BRICS.
Current Members of BRICS
Founding members
- Brazil
- Russia
- India
- China
- South Africa
New Members (joined in 2024)
- Egypt
- Ethiopia
- Iran
- Saudi Arabia
- United Arab Emirates
Argentina was initially invited to join but later withdrew its application
BRICS’ Significance for India
Economic Benefits
1. Increased Trade: BRICS provides India with access to a large market, increasing trade opportunities and promoting economic growth.
2. New Development Bank (NDB): The NDB, established by BRICS, provides India with access to funding for infrastructure and sustainable development projects.
Strategic Benefits
1. Global Influence: BRICS membership enhances India's global influence, allowing it to play a more significant role in shaping international policies.
2. Counterbalance to Western Dominance: BRICS provides a platform for India to counterbalance Western dominance in global governance and economics.
3. Regional Security: BRICS cooperation on regional security issues, such as counter-terrorism and maritime security, benefits India's national security interests.
Technological Benefits
1. Technology Transfer: BRICS cooperation can facilitate technology transfer and collaboration in areas like IT, biotechnology, and renewable energy.
2. Innovation and R&D: India can participate in joint research and development projects with BRICS countries, driving innovation and economic growth.
Soft Power Benefits
1. Cultural Exchange: BRICS promotes cultural exchange and people-to-people diplomacy, enhancing India's soft power and global reputation.
2. Education and Research: India can collaborate with BRICS countries on education and research initiatives, promoting academic excellence and innovation.
Major Challenges facing BRICS
Geopolitical Challenges arise from the diverse interests and agendas of member nations.
- For instance, China's push for rapid expansion of BRICS has been met with resistance from India and Brazil, which prioritize trust-building and cooperation over expansion.
- This divergence in views can impede collective decision-making and action.
Global Governance Challenges stem from the need for BRICS to navigate complex international relationships and institutions.
- The group seeks to promote reforms in global financial institutions, but its efforts are often constrained by the dominant influence of Western nations .
Institutional Challenges relate to the group's internal dynamics and decision-making processes.
- BRICS has made significant progress in establishing institutional mechanisms, such as the New Development Bank, but its consensus-based approach can sometimes limit its ability to take decisive action
Previous Year Related Questions
1. Discuss the significance of BRICS as a grouping and its implications for global governance. (2014)
2. What are the major challenges facing SAARC? How can they be addressed? (2012)
3. Discuss the significance of India's 'Act East Policy' and its implications for India's relations with ASEAN. (2017)
4. Analyze the potential of BIMSTEC as a regional grouping and its significance for India's foreign policy. (2019)
5. Analyze the role of G20 in global economic governance and its significance for India. (2015)
6. What are the implications of the WTO's Doha Round for India's trade and economic interests? (2011)
7. Quadrilateral Security Dialogue (Quad) is transforming itself into a trade bloc from a military alliance, in present times – Discuss. (2020)
8. How will the I2U2 (India, Israel, UAE, and USA) grouping transform India’s position in global politics? (2022)
9. Discuss India's role in the Shanghai Cooperation Organisation (SCO) and its implications for regional security. (2021)