New Brics year: India takes charge as world looks to ease looming trade tensions

India on Thursday formally took over the rotating presidency of the Brics grouping for 2026, with New Delhi expected to push for more inclusive development and a stronger role for the Global South in international economic governance, at a time when US President Donald Trump’s tariff policies have disrupted global trade.

Brics was originally formed by Brazil, Russia, India, China and South Africa, but has expanded over the past two years to include Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates. The Brics website lists Saudi Arabia as the bloc’s 11th member, though some reports say Riyadh has yet to formally join.

According to World Bank data, the expanded grouping accounts for about 49% of the world’s population, roughly 29% of global gross domestic product and 23% of international trade.

Trump imposed tariffs of up to 50% on Indian goods in August, including a 25% penalty linked to India’s purchases of Russian oil. The rate is the highest applied to any US trading partner and matched duties imposed on Brazil, which held the Brics presidency in 2025. Washington later lifted additional levies on several Brazilian food exports, including coffee and beef, in November.

In February, Trump warned Brics countries against pursuing a common currency, declaring the bloc “dead” and threatening 100% tariffs if members sought to challenge the dominance of the US dollar.

“Facing Trump tariffs, India will likely resist confrontational de-dollarization, and instead promote local currency settlements to maintain strategic autonomy during its Brics presidency,” Nikkei Asia quoted Prerna Gandhi, an associate fellow at India’s Vivekananda International Foundation think tank, as saying.

“India will also push for reforms in multilateral institutions like the World Trade Organization and International Monetary Fund while encouraging dialogue that reduces fragmentation and promotes stability in global supply chains,” she added.

Raj Kumar Sharma, a senior research fellow at New Delhi-based think tank NatStrat, told Nikkei Asia that India will use its Brics presidency to “defend and strengthen multilateralism against any unilateral impulses.”

“There is need to strengthen multilateral trading systems during current times when protectionism and tariffs are increasing. At the same time, India will also support reform of global governance institutions like the United Nations Security Council, the World Bank and the IMF,” he said, adding that New Delhi recognises structural inequalities in global trade rules and may advocate special and differential treatment for developing countries in the Global South.

On the Global South agenda, Sharma said India will continue the approach it adopted during its G20 presidency in 2023, giving “primacy to human welfare, inclusive development and broad public concerns affecting various countries.”

He said issues such as food and fuel shortages, debt restructuring and climate finance “will be central to India’s 2026 Brics presidency, which could face some challenge from America’s G20 presidency in which issues of the Global South may not be adequately highlighted.”

“India would like to make sure that the voice of the Global South is not lost amidst ongoing great-power rivalry,” he said.

Separately, Pakistan, India’s rival neighbour and an economy under strain, is seeking to join the Brics-backed New Development Bank to diversify its borrowing options.

Islamabad applied for Brics membership in 2023, looking to Russia and China for support.

Sharma said “India is likely to push for clearly defined criteria for Brics membership so that the bloc does not lose its significance due to [any] unplanned expansion.”

Gandhi said India supports expansion in principle but insists it “should strengthen, not dilute, Brics’ effectiveness” as a platform for development cooperation and global governance reform.

She said India has called for clear and transparent benchmarks — including economic size, development profile, institutional capacity and commitment to multilateralism — rather than politically driven or ad hoc admissions, and stressed that decisions must be taken by full consensus.

She added that in 2025, Brics focused on consolidating its existing membership rather than pursuing further expansion.

With inputs from agencies