PM Modi Brazil Visit | BRICS Summit | InDepth | UPSC | Drishti IAS

Summary

The 17th BRICS summit held in Brazil in July 2025 highlighted the group's growing influence in global politics and economics. With members Brazil, Russia, India, China, and South Africa, BRICS advocates for a reformed global governance system that better represents developing nations, particularly the Global South. Key outcomes included calls for India and Brazil’s permanent membership in the UN Security Council, the use of local currencies for trade to reduce reliance on the US Dollar, and the condemnation of terrorism. The summit also focused on reforms in global institutions, digital governance, and fostering economic cooperation among emerging economies.

Takeaways

• 😀 The BRICS summit is a significant international event where the heads of nations from Brazil, Russia, India, China, and South Africa (BRICS) meet to discuss global issues and cooperation.
• 😀 This year’s BRICS summit was held in Brazil, and the importance of India and Brazil was highlighted through a joint declaration that emphasized their role in the Global South.
• 😀 The Global South refers to developing and low-income countries, mainly located in the Southern Hemisphere, advocating for more representation and reforms in global institutions.
• 😀 BRICS was initially formed with four countries (Brazil, Russia, India, China) and later included South Africa, making it a group of five. In 2024, more countries such as UAE, Ethiopia, Egypt, Iran, and Indonesia joined.
• 😀 A major topic at the summit was the demand for permanent membership for Brazil and India in the United Nations Security Council, aiming to make the council more democratic and representative of the Global South.
• 😀 BRICS countries are working to reduce dependency on the US dollar in trade by encouraging transactions in local currencies, using Nostro and Vestro accounts to facilitate currency exchange.
• 😀 There was a strong condemnation of terrorism, with a call for zero tolerance against terrorist activities, as well as a push for reforming global institutions like the UN, IMF, and World Bank to better represent the interests of developing countries.
• 😀 The summit also discussed AI and digital governance, addressing concerns about data privacy, misuse, and the development of global regulations for AI, e-commerce, and technology startups.
• 😀 Trade restrictions between BRICS countries were another key issue, with discussions focused on removing export restrictions to foster better trade relations.
• 😀 A specific focus was placed on improving India-China relations, particularly addressing tensions along the Line of Actual Control (LAC) and exploring potential investments, especially in India’s electronics sector.

Q & A

What is the significance of the 17th BRICS summit held in Brazil?

The 17th BRICS summit, held in Brazil, was an important event where leaders from Brazil, Russia, India, China, and South Africa, along with new members like UAE, Ethiopia, Egypt, Iran, and Indonesia, discussed crucial global issues and their collective role in shaping international governance, trade, and security.

What countries are included in BRICS and how did the group evolve?

BRICS originally included Brazil, Russia, India, and China. South Africa joined in 2010, and more countries were invited in 2024, such as the UAE, Ethiopia, Egypt, Iran, and Indonesia, expanding the group significantly.

Why do Brazil and India seek permanent membership in the United Nations Security Council?

Brazil and India seek permanent membership in the UN Security Council to better represent the interests of the Global South and reflect their growing influence in global politics, particularly considering their large populations and economic significance.

What does the term 'Global South' refer to?

The 'Global South' refers to developing or low-income countries, particularly those in the Southern Hemisphere. It encompasses nations that are not fully developed and often have less representation in major international institutions.

What is the role of BRICS in advocating for reforms in global institutions?

BRICS advocates for the reform of global institutions like the United Nations, IMF, and World Bank, pushing for more democratic processes and better representation of developing nations to ensure their voices are heard in international decision-making.

What is the discussion around trading in local currencies among BRICS countries?

BRICS countries aim to reduce reliance on the US dollar for international trade by promoting transactions in local currencies. This move is designed to minimize the economic impact of fluctuations in the US dollar and ensure stability in trade between these nations.

How does the 'nostro and vestro' account system work in BRICS trade?

The 'nostro and vestro' account system allows BRICS countries like India and Brazil to trade using their respective currencies. India would deposit its currency (rupees) into an account in Brazil, while Brazil would deposit its currency (real) in India. This system facilitates currency exchanges in international trade.

What is BRICS' stance on terrorism?

BRICS strongly condemned terrorism, emphasizing a zero-tolerance approach. Leaders, including India’s Prime Minister, highlighted the need to combat terrorism globally and called for collective action against such threats.

What is the significance of AI and digital governance discussions at the summit?

The summit highlighted the growing importance of AI and digital governance, focusing on ensuring data privacy and preventing the misuse of AI. BRICS nations agreed to work together to create global standards for AI development and e-commerce regulations.

How does BRICS plan to address global trade issues like tariff wars?

BRICS countries discussed the negative effects of tariff wars and emphasized the need for reducing tariffs to avoid harming international trade. They also proposed removing trade restrictions within BRICS countries to promote smoother business relations.