GS Paper II | International Relations | Global Groupings | Global South
GS Paper III | International Trade | Supply Chains | Digital Payments
Current Affairs | 11 September 2026
BRICS Business Forum 2026: India Pushes Resilient Supply Chains and Deeper Economic Cooperation
Introduction
The BRICS Business Forum 2026 is being held at Bharat Mandapam, New Delhi, on 11 September 2026, immediately ahead of the 18th BRICS Leaders’ Summit scheduled for 12–13 September.
India is chairing BRICS in 2026 under the theme:
“Building for Resilience, Innovation, Cooperation and Sustainability.”
At the Business Forum, India emphasised stronger intra-BRICS trade, more resilient supply chains, reduction of non-tariff barriers, improved payment connectivity and greater participation of startups and women-led enterprises.
The meeting is important because BRICS is no longer only a political grouping of five emerging economies. It has expanded into a wider platform representing a significant share of global population, production and trade.
Body
What is BRICS?
BRICS originally emerged from cooperation among:
Brazil, Russia, India, China and South Africa.
The grouping has subsequently expanded.
According to the Government of India’s 2026 BRICS backgrounder, the grouping now includes 11 members:
- Brazil
- Russia
- India
- China
- South Africa
- Egypt
- Ethiopia
- Iran
- Indonesia
- Saudi Arabia
- United Arab Emirates
Together, BRICS members account for roughly 49.5% of the global population, 40% of global GDP and 26% of global trade.
For Prelims, remember that BRICS is not a military alliance and is not organised on the same model as the European Union.
It functions primarily as a platform for coordination among major emerging and developing economies.
India’s BRICS Chairship 2026
India is holding the BRICS Chairship for the fourth time, after earlier chairships in:
2012, 2016 and 2021.
The 2026 theme is:
Building for Resilience, Innovation, Cooperation and Sustainability
The four words reflect India's stated priorities.
Resilience: Building economies capable of absorbing shocks such as pandemics, wars, supply-chain disruptions, commodity-price shocks and financial instability.
Innovation: Promoting cooperation in Artificial Intelligence, digital technologies, startups, emerging technologies and science.
Cooperation: Deepening collaboration in trade, finance, health, education, energy, agriculture and connectivity.
Sustainability: Balancing economic growth with climate action, energy transition, food security and sustainable development.
India has presented the chairship as people-centric and Global South-oriented.
Why is the 2026 Business Forum important?
The Business Forum connects BRICS political cooperation with the private sector.
While governments negotiate broad policy priorities, businesses deal directly with issues such as:
- market access;
- logistics costs;
- customs procedures;
- financing;
- cross-border payments;
- regulatory barriers;
- supply-chain disruptions.
The forum can therefore help translate diplomatic cooperation into practical economic activity.
1. Resilient Supply Chains
India highlighted the need for resilient and diversified supply chains in an increasingly uncertain global economy.
For decades, production systems largely prioritised maximum efficiency:
Lowest cost → concentrated production → global distribution
Recent shocks have exposed the vulnerabilities of excessive concentration.
COVID-19, geopolitical conflicts, sanctions and trade restrictions demonstrated how dependence on a limited number of production centres can disrupt entire economies.
The emerging model therefore gives greater importance to:
Efficiency + Resilience + Diversification
For India, this is relevant to initiatives such as:
- Production Linked Incentive schemes;
- PM Gati Shakti;
- National Logistics Policy;
- semiconductor manufacturing;
- domestic manufacturing expansion.
2. Reducing Non-Tariff Barriers
India has also called for addressing non-tariff measures and regulatory barriers that restrict trade even when customs duties are relatively low.
Non-tariff barriers may include:
- complex product standards;
- licensing requirements;
- sanitary and phytosanitary measures;
- lengthy customs procedures;
- local-content requirements;
- technical regulations.
Some such measures are legitimate and necessary for safety or environmental protection.
However, they can become trade barriers when they are excessively restrictive, discriminatory or opaque.
Prelims Concept
Tariff barrier: A customs duty or tax imposed on imports.
Non-tariff barrier: A restriction affecting trade without directly imposing a tariff.
3. Payment Connectivity
India has emphasised closer connectivity among payment systems of BRICS countries.
This reflects a wider debate about reducing:
- transaction costs;
- settlement delays;
- dependence on intermediary banking networks.
India's experience with UPI provides an example of low-cost, interoperable digital payments.
Possible areas of cooperation include:
- cross-border payment connectivity;
- faster settlement;
- fintech cooperation;
- local-currency settlement.
However, payment-system connectivity does not automatically imply creation of a common BRICS currency.
This distinction is important for both Prelims and Mains.
4. Local-Currency Trade
Using national currencies in bilateral trade can reduce dependence on third-country currencies for selected transactions.
Potential advantages include:
- lower conversion costs;
- reduced exposure to some exchange-rate risks;
- easier trade during external financial restrictions.
However, successful local-currency trade requires:
- liquidity;
- convertibility;
- confidence;
- balanced trade flows;
- reliable settlement mechanisms.
Thus, implementation is considerably more complex than the political announcement of such arrangements.
5. Startups and Innovation
India has sought greater BRICS cooperation in:
- startups;
- AI;
- emerging technologies;
- research;
- digital public infrastructure.
This reflects India's attempt to move BRICS cooperation beyond traditional commodity and merchandise trade.
6. Women-Led Development
The Business Forum also gives importance to women entrepreneurs and cross-border business partnerships.
This fits India's broader emphasis on women-led development, rather than viewing women only as beneficiaries of welfare programmes.
Greater participation of women-owned businesses can improve access to finance, export participation, entrepreneurship and labour-force participation.
BRICS and the Global South
One of the most important dimensions of BRICS is its attempt to represent concerns of emerging and developing economies.
Many Global South countries argue that institutions established after the Second World War do not adequately reflect contemporary economic realities.
Key concerns include:
- IMF quota reform;
- World Bank governance;
- UN Security Council reform;
- development finance;
- climate finance;
- technology access.
BRICS provides another platform through which emerging powers can seek greater representation in global governance.
New Development Bank
A major institutional achievement of BRICS is the New Development Bank (NDB).
It finances infrastructure and sustainable-development projects.
The NDB does not formally replace institutions such as the World Bank or Asian Development Bank. Instead, it provides an additional source of development finance.
Prelims fact: The headquarters of the NDB is in Shanghai, China.
Why BRICS Matters for India
Strategic autonomy
BRICS allows India to engage with countries with which it may have differing geopolitical interests.
India can simultaneously participate in:
- BRICS;
- Quad;
- G20;
- SCO;
- other minilateral arrangements.
This illustrates India's preference for strategic autonomy and multi-alignment.
Global South leadership
India can use BRICS to highlight concerns involving development finance, food security, energy security, climate justice and technology access.
Economic opportunities
Expanded BRICS membership provides access to large consumer markets, energy producers, mineral-rich economies, manufacturing centres and investment capital.
Energy security
Several BRICS members are significant oil and gas producers, giving the grouping potential importance for India's long-term energy strategy.
Multipolar global order
India supports reform of global institutions so that emerging economies receive greater representation.
BRICS strengthens India's case for a more multipolar and representative global governance system.
Challenges Before BRICS
Internal geopolitical differences
Members do not always have identical strategic interests.
India and China, for example, cooperate within BRICS while simultaneously managing bilateral strategic competition.
Unequal economic weight
China's economy is significantly larger than most other BRICS economies, creating concerns about asymmetry.
Expansion vs effectiveness
Expansion increases representativeness but also makes consensus more difficult.
The challenge is:
Greater representation without institutional paralysis.
Trade imbalance
Increasing intra-BRICS trade alone is not sufficient.
Trade must also become more balanced and diversified.
Financial integration difficulties
Cross-border payment connectivity and local-currency trade require financial stability, regulatory compatibility, liquidity and trusted settlement mechanisms.
Way Forward
Increase practical economic cooperation
BRICS should pursue measurable progress in:
- trade facilitation;
- logistics;
- customs cooperation;
- investment.
Build interoperable payment systems
Cross-border payment connectivity can reduce transaction costs, but arrangements should remain transparent and compatible with international financial standards.
Strengthen the New Development Bank
The NDB should expand high-quality financing for sustainable infrastructure, climate resilience and connectivity.
Improve institutional effectiveness
As membership expands, BRICS will require stronger mechanisms for consensus-building and implementation.
Preserve India's strategic autonomy
India should use BRICS to advance its interests without allowing membership in one grouping to limit partnerships elsewhere.
Keep the Global South central
BRICS will remain relevant only if it produces practical outcomes on:
- development;
- climate finance;
- food and energy security;
- technology;
- multilateral reform.
Conclusion
The BRICS Business Forum 2026 demonstrates that the grouping's future relevance will increasingly depend on economic delivery rather than political symbolism.
India's emphasis on resilient supply chains, easier trade, digital-payment connectivity, innovation and women-led enterprise reflects an effort to make BRICS more practical and development-oriented.
At the same time, expansion has made BRICS more influential but also more complex.
For India, BRICS remains valuable because it provides a platform to pursue three objectives simultaneously:
strategic autonomy, Global South leadership and reform of global governance.
The real test of BRICS will therefore not be how many countries it includes, but whether its growing economic weight can be converted into credible institutions and tangible cooperation.
Mains Practice Questions
Q1. “The expansion of BRICS has increased its global weight but also complicated its internal cohesion.” Discuss the opportunities and challenges for India in an expanded BRICS.
15 Marks | 250 Words
Q2. Examine the significance of resilient supply chains and cross-border payment connectivity in India's economic agenda within BRICS.
10 Marks | 150 Words
Sources
PIB – India’s BRICS Chairship 2026
Economic Times – BRICS Business Forum: Trade Barriers and Payment Connectivity
Economic Times – BRICS Business Forum: Resilient Supply Chains
