New Delhi is hosting a high-stakes BRICS summit this weekend, bringing together Chinese President Xi Jinping, Russian President Vladimir Putin, and Indian Prime Minister Narendra Modi. The gathering occurs against a fracturing geopolitical landscape, marked by active conflict between the U.S. and Israel against Iran, ongoing diplomatic efforts to end the war in Ukraine, and the disruptive trade tariffs implemented by U.S. President Donald Trump.
The summit highlights a complex dynamic where Washington’s economic pressure is incentivizing greater cooperation among emerging economies on trade and payments. However, deep-seated strategic rivalries, particularly between India and China, limit the depth of that collaboration.
A Cautious Thaw Between Rivals
This meeting marks Xi’s first visit to India since 2019, signaling a continued, albeit cautious, thaw following deadly border clashes in the Himalayas in 2020. While flights, visas, and high-level diplomatic contacts have been restored, significant tensions persist regarding border disputes and India’s substantial trade deficit with Beijing.
Chietigj Bajpaee, a senior research fellow at Chatham House, noted that recent strains with the Trump administration have prompted New Delhi to reinvest in relationships outside the Western orbit. “The meeting between Modi and Xi is likely to further advance the ongoing reset in bilateral relations and build confidence,” Bajpaee said, pointing to progress made in August between Chinese and Indian security advisors on border issues.
For Putin, the summit serves as a platform to demonstrate Russia’s enduring ties with major global economies. Western sanctions over Ukraine have elevated the importance of partners like China and India, with Moscow relying heavily on Beijing for economic support and New Delhi as a key buyer of its oil.
The Battle Over the Dollar
A central theme of the summit is the potential shift away from the U.S. dollar. Trump has frequently criticized BRICS, describing it as an “attack on the dollar,” and has threatened tariffs against member nations that attempt to undermine U.S. currency dominance.
In response, BRICS members have discussed increasing trade in local currencies and developing alternative cross-border payment systems. However, the group is not unified on the extent of de-dollarization. India has sought to steer the bloc toward using national currencies and digital payments to lower trade costs, rather than pursuing a broad rejection of the dollar, according to Bajpaee. Meanwhile, the Kremlin has stated it is not currently seeking outright “de-dollarisation,” despite increasingly conducting trade outside the dollar system.
A ‘Dysfunctional Family’
Since its expansion to include nations such as Iran, Egypt, Ethiopia, the UAE, and Indonesia, BRICS has gained significant economic weight but faces challenges in reaching consensus. Sarang Shidore, director of the Global South program at the Quincy Institute, described the group as a “dysfunctional family,” noting that differences are most apparent on security issues—exemplified by the inclusion of both Iran and the UAE, which are on opposing sides of the Middle East conflict.
Shidore characterized BRICS as a “pragmatic club for limited purposes,” focused primarily on development and global institutional reform rather than forming an ideological bloc against the United States. This sentiment is echoed by India’s stance; New Delhi desires a non-Western worldview within the group but avoids explicit anti-American positioning.
The overlapping alliances within the bloc further complicate the narrative of BRICS as an anti-U.S. alliance. Beyond India’s close ties with Washington through the Quad, the UAE continues to maintain significant economic relationships with the West, recently pledging $46 billion in investment in Germany.
As the leaders convene in New Delhi, analysts will be watching to see if U.S. tariffs and sanctions act as a catalyst for deeper regional cooperation or if existing divisions prevent meaningful advancement.
De-dollarization is the buzzword, but local currency trade is the reality. The West is waking up too late.
Putin just wants validation. Moscow relies on us for survival, making Russia the weakest link in this alliance.
A dysfunctional family united only by anti-US sentiment? Sounds like a coalition waiting to fracture completely.
How can India truly trust China after the border clashes? This ‘thaw’ feels incredibly fragile to me.
Finally, India leverages its position. The dollar dominance era is crumbling, and New Delhi is adapting smartly.