BRICS: is India considering leaving the Alliance?

Although much has been said about the BRICS bloc’s expansion plans, there is no denying the tensions already present among its current members. The presence of occasional dissension has led the BRICS group to face India’s possible exit from the alliance.

In recent weeks, the country has made a concerted effort to differentiate itself from the rest of the collective. However, these acts specifically caused him to embrace his relations with the West. The overall context seems to create a controversial situation in which a country could be on the verge of extinction.

Also Read: US Monitors BRICS Digital Currency Push Amid Falling Dollar

India and BRICS: what’s wrong?

brics india bharat prime minister narendra modi g20 summitbrics india bharat prime minister narendra modi g20 summit
Source: AFP

For much of the last year, the BRICS alliance has seen relentless growth. At its 2023 annual summit, it invited six nations to join its ranks. Among these invitations, five countries agreed to expand the group to 10 member countries. Additionally, the presence of Saudi Arabia and the United Arab Emirates (UAE) has continued to strengthen the important voices that bring seats to the table.

However, what has always been a problem with the BRICS group is the seeds of conflict sown in its creation; specifically regarding India and its place in the alliance. This took a major hit when implemented Russian sanctions created a more complicated oil purchasing procedure for the bloc.

Also read: Another new country expresses interest in joining BRICS Alliance

Since 2022, these sanctions implemented by the West have led Russia and India to agree on a massive oil deal which greatly benefited the latter. Specifically, it achieved nearly $7 billion in savings by purchasing Russian oil at a discounted rate. Additionally, both parties agreed to settle the deal in local currency. This decision reinforced the dedollarization it had used.

However, the problem arose when Russia ordered compensation to be paid in the form of the Chinese yuan. The currency was much more valuable in the BRICS context than the Indian rupee, but tensions between India and China had led to a less-than-enthusiastic response from the country.

All this culminated in the recent development that India was buying oil from the United States. Specifically, Bloomberg reported an increase in Western acquisitions amid Russian sanctions. Given the anti-Western stance of the BRICS alliance, this development has certainly generated less enthusiasm.

Could the Alliance lose a key member?

Brics, new sdb development bankBrics, new sdb development bank
Source: BND

Also read: BRICS are ‘ready to work’ with all countries to abandon the US dollar

The question now is what the outcome might be. The BRICS alliance is committed to reducing international dependence on the US dollar. However, one of its most important members now uses this currency to buy oil that it no longer accepts from Russia.

The conflict between China and India has often been a cause for concern about the growth prospects of the BRICS. The two sides fought constantly, with neither offering to concede on their views. But could the alliance afford to lose India, one of the fastest growing economies on the planet?

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Source: Getty Images

Read also: BRICS: central banks prepare for the collapse of the US dollar

Although it would be far from ideal, the bloc will have to assess its current state and decide what it can live with. Ongoing dedollarization plans run counter to India’s actions. Additionally, expansion can be seen as an attempt to include a nation more willing to work within established parameters.

Conversely, seeing India leave the alliance due to disagreement over monetary settlement goes against the alliance’s mission in the first place. The economic collective sought to create a multipolar world based on cooperation and understanding. They often spoke of the need for these countries to work for the good of the whole and not of the individual.

The message of India’s departure may run counter to the prospect. Afterwards, the alliance must decide if this is something they can accept as an alliance. It seems unlikely that India will leave the country, but the possibility certainly cannot be ruled out at this stage.

reference: watcher.guru

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