BRICS Expansion and India’s Concerns: Geopolitical and Economic Impact
BRICS expanded its membership last year, welcoming the United Arab Emirates, Egypt, Iran, and Ethiopia while Argentina declined and Saudi Arabia remains undecided.
However, India has expressed reservations about further expansions in 2024, concerned that the group’s cohesion and original spirit of equal partnership could be compromised.
Both Russia and China advocate for more countries to join BRICS, aiming to strengthen the alliance’s geopolitical influence vis-à-vis the US, Europe, and their allies. India, however, perceives this push as potentially undermining BRICS’ foundational principles, emphasizing the need for a cautious approach and allowing time for the group to integrate its new members.
Pakistan’s interest in joining BRICS, supported by Russia and China, has exacerbated tensions with India due to historical conflicts between the two nations. India views external support for Pakistan’s membership bid as destabilizing and counterproductive within the BRICS framework.
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Economically, the inclusion of new members could significantly boost BRICS’ collective GDP by an estimated $3.6 trillion, with Southeast Asian nations like ASEAN considered as potential future additions. ASEAN, comprising countries such as Malaysia and Thailand, has shown interest in joining BRICS to counterbalance Western-dominated institutions.
Amid these developments, Russia and Iran are advancing a new partnership agreement within BRICS, building on their strengthened bilateral ties since Iran’s accession to the alliance last year. Their efforts include initiatives to trade in local currencies rather than the US dollar, reflecting a broader geopolitical strategy to enhance their economic and strategic cooperation.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
