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Why Is BRICS Challenging Western Dominance? Key Insights

The rise of BRICS (Brazil, Russia, India, China, South Africa) is reshaping global power dynamics, offering an alternative to Western-led financial systems. For India, this presents both opportunities and challenges—especially in trade, security, and diplomacy. If you’re preparing for competitive exams like SSC, PSC, or NIFT, understanding BRICS is crucial for current affairs and international relations sections.

BRICS and the Global South: Key Insights
1. BRICS Empowers the Global South
BRICS amplifies the voice of developing nations, reducing reliance on Western-dominated institutions like the IMF and World Bank.
Initiatives like BRICS Pay and the New Development Bank (NDB) provide financial alternatives, promoting local currency trade.

2. India’s Strategic Position in BRICS
India balances its BRICS commitments with alliances like G20, SCO, and IBSA.
The Rio Declaration reinforces India’s stance against cross-border terrorism, a key diplomatic win.

3. China’s Dominance & Western Missteps
The US and Europe’s outsourcing to China strengthened its economy, but now BRICS is seen as a counterbalance.
Unlike the West, BRICS nations (except China) support multipolarity, where no single power dominates.

4. Why the West Criticizes BRICS
The US views BRICS as a threat, imposing tariffs and pushing back against de-dollarization efforts.
However, India remains neutral, engaging with both Western and BRICS blocs strategically.

Sample Questions & Answers for Competitive Exams
Q1: What is the significance of BRICS for the Global South?
Ans: BRICS provides developing nations with greater economic and political influence, reducing dependence on Western-led financial systems.
Q2: How does BRICS challenge the US dollar’s dominance?
Ans: Through initiatives like local currency trade and the New Development Bank, BRICS promotes alternative financial systems.
Q3: What was India’s stance on terrorism in the BRICS Rio Declaration?
Ans: India emphasized strong measures against cross-border terrorism, gaining diplomatic support from BRICS members.
Q4: How does India balance its role in BRICS with other groups like G20?
Ans: India engages with multiple blocs (G20, SCO, IBSA) to maximize strategic and economic benefits without aligning with any single power.
Q5: Why does the US perceive BRICS as a threat?
Ans: BRICS’s push for de-dollarization and alternative governance models challenges Western economic dominance.

Why Is This Important for Exams?
Current Affairs: BRICS developments frequently appear in SSC, PSC, UPSC, and banking exams.
International Relations: Understanding BRICS helps in GS Paper II (Mains) for UPSC and state PSCs.
Essay & Interview: Questions on multipolarity, India’s foreign policy, and global groupings are common.