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What is BRICS: How 5 Nations Are Reshaping Global Economics?

BRICS is a powerful coalition of five major emerging economies—Brazil, Russia, India, China, and South Africa. Formed to promote global cooperation, economic growth, and a fairer world order, BRICS is reshaping international trade and politics. Here’s why every competitive exam aspirant should know about it.

What is BRICS?
BRICS stands for:
Brazil
Russia
India
China
South Africa
Founded in 2009, this group represents over 40% of the world’s population and 30% of global GDP. Originally starting as BRIC (without South Africa), the bloc expanded in 2010 when South Africa joined, making it BRICS.

Key Objectives of BRICS:
✔ Economic Cooperation – Boosting trade and investment among member nations.
✔ Political Coordination – Aligning stances in global forums like the UN.
✔ Sustainable Development – Supporting climate action and inclusive growth.
✔ Reforming Global Institutions – Advocating for fairer IMF and World Bank policies.

Why is BRICS Economically Significant?
BRICS nations are economic powerhouses, with each member ranking among the world’s top 30 economies:
China – 2nd largest economy (Nominal GDP).
India – 4th largest (PPP GDP) & 10th largest (Nominal GDP).
Brazil – Once the 6th largest economy (2011).
Russia – 9th largest economy.
South Africa – Africa’s most industrialized economy (26th globally).
During the 2008 financial crisis, BRICS played a crucial role in stabilizing global markets by increasing trade with developing nations.

How Does BRICS Influence Global Politics?
BRICS nations often unite on key global issues, such as:
Reforming the UN Security Council (India & Brazil seek permanent seats).
Promoting a multipolar world (reducing Western dominance in finance).
Creating alternatives to the US Dollar (e.g., discussions on a BRICS currency).
They also collaborate in:
New Development Bank (NDB) – A BRICS-led alternative to the World Bank.
Contingent Reserve Arrangement (CRA) – A financial safety net for crises.

Sample Questions & Answers (For SSC, PSC, UPSC, etc.)
Q: What does BRICS stand for?
A: Brazil, Russia, India, China, South Africa.
Q: When was South Africa added to BRIC, making it BRICS?
A: December 2010.
Q: Which BRICS country is the 2nd largest economy globally?
A: China.
Q: What is the New Development Bank (NDB)?
A: A BRICS-led bank funding infrastructure projects in developing nations.
Q: How does BRICS challenge Western economic dominance?
A: By promoting local currency trade & alternatives to IMF/World Bank.

Why is BRICS Important for Competitive Exams?
Current Affairs – Frequently asked in UPSC, SSC, PSC, and banking exams.
International Relations – Key for IAS, IFS, and political science aspirants.
Economic Policies – Helps in RBI Grade B, SEBI, and NABARD exams.
Global Trends – Critical for essay writing and interviews.