BRICS ‘POWER’ Framework: A New Blueprint for Global South Cooperation

Context

Ahead of the 18th BRICS Summit in New Delhi, Chinese Ambassador Xu Feihong proposed the ‘POWER’ framework for strengthening an expanded BRICS and enhancing cooperation among countries of the Global South. The proposal assumes significance as India holds the BRICS chair in 2026, followed by China in 2027, creating an opportunity for policy continuity between the two major members.

What is the BRICS ‘POWER’ Framework?

The framework seeks to give greater strategic direction to the expanded BRICS grouping, moving beyond its traditional economic focus towards cooperation in global governance, trade, finance, technology, development and supply chains.

With the expansion of BRICS, the grouping represents nearly half of the world’s population, around 30% of global GDP, and about 20% of global trade. Its members also occupy important positions in sectors such as critical minerals, agriculture, steel and electronics.

The Five Pillars

Pillar	Core Focus
P – Principle	Sovereign equality, non-interference, international law and peaceful settlement of disputes
O – Openness	Rules-based trade, WTO principles and resistance to protectionism and economic fragmentation
W – Win-Win	Development-oriented cooperation, SDGs, local-currency settlements and cross-border payments
E – Engine	Growth through AI, digital infrastructure, green technologies and advanced manufacturing
R – Responsibility	Greater Global South leadership and continuity through successive India-China presidencies

1. Principle – Sovereignty and International Law

The framework places emphasis on sovereign equality, territorial integrity and non-interference. It seeks to strengthen the role of the UN Charter and promote peaceful mechanisms for resolving disputes.

For India, this principle is particularly important because BRICS cooperation must remain compatible with strategic autonomy and respect for sovereignty, rather than becoming an instrument of bloc politics.

2. Openness – Protecting Multilateral Trade

The proposal advocates a stronger WTO-centred trading system, including non-discriminatory trade rules. It also calls for greater cooperation in infrastructure, energy and critical-mineral supply chains.

This becomes increasingly relevant amid tariff barriers, geopolitical decoupling and fragmentation of global supply chains.

3. Win-Win – Development and Financial Cooperation

The framework gives priority to development and proposes greater use of:

• Local-currency trade and settlements.
• Interoperable cross-border payment systems.
• Reciprocal credit arrangements.
• Cooperation towards the post-2030 development agenda.

Such measures could reduce exposure to exchange-rate volatility and excessive dependence on external financial systems.

4. Engine – Technology and Industrial Growth

BRICS is envisioned as a driver of global growth through cooperation in:

• Artificial Intelligence.
• Digital Public Infrastructure.
• Green technologies.
• Smart manufacturing.
• Emerging industrial technologies.

Greater technological collaboration could help developing economies bridge the digital and productivity divide.

5. Responsibility – Global South Leadership

The final pillar seeks to use the successive Indian and Chinese presidencies to maintain continuity in BRICS’ agenda.

It also supports reforms of institutions such as the IMF, World Bank and UN Security Council, with the objective of giving developing countries greater representation in global decision-making.

Why is the Framework Significant for India?

1. Platform for Global South priorities – BRICS can provide India with a wider forum to push issues such as development finance, food and energy security, technology access and institutional reform.

2. Opportunity for India-China engagement – Successive presidencies could provide space for structured cooperation despite continuing bilateral differences.

3. Supply-chain resilience – Cooperation among BRICS economies could diversify sources of critical minerals, energy, fertilisers and industrial inputs.

4. Digital and financial innovation – India’s experience with UPI and Digital Public Infrastructure offers scope for interoperable payment and digital systems among partner countries.

5. Reform of global institutions – A coordinated BRICS position can strengthen demands for more representative global financial and political institutions.

Major Challenges

Divergent geopolitical outlooks

India generally views BRICS as a platform for strategic autonomy and reform of multilateral institutions, whereas some members increasingly see it as a counterweight to Western influence. This difference can limit consensus.

India-China economic imbalance

Despite calls for greater openness, India’s trade relationship with China remains marked by a large trade deficit and market-access concerns, particularly for Indian agricultural and pharmaceutical exports.

Unresolved bilateral issues

Improved India-China diplomatic engagement does not eliminate differences concerning the LAC, border infrastructure and transboundary river issues. These tensions can spill over into multilateral cooperation.

Difficulty of de-dollarisation

Moving towards local-currency trade requires convertible currencies, deep financial markets, adequate liquidity and compatible payment infrastructure. These conditions remain uneven across BRICS economies.

Diverse membership

The enlarged BRICS includes countries with substantially different economic structures and foreign-policy priorities. Achieving consensus among such a diverse group will therefore remain difficult.

Way Forward

• Preserve BRICS as an inclusive platform: India should ensure that the grouping remains focused on development and multilateral reform rather than becoming an exclusively anti-Western alliance.
• Build practical financial connectivity: Strengthen the New Development Bank and promote interoperable payment mechanisms, while avoiding premature moves towards a common BRICS currency.
• Develop common AI principles: Cooperation should emphasise responsible AI, data governance, accessibility and capacity building for developing economies.
• Strengthen resilient supply chains: BRICS members can create reliable partnerships in critical minerals, energy, agriculture, fertilisers and clean technologies.
• Separate bilateral disputes from multilateral cooperation: India-China disagreements should be managed through dedicated diplomatic and military channels without paralysing cooperation in BRICS.
• Coordinate on institutional reform: Greater convergence should be built around realistic reforms of the IMF, World Bank and UN system, particularly improved representation for developing countries.

Conclusion

The POWER framework reflects the growing ambition of BRICS to become a more consequential platform for the Global South. Its success, however, will depend less on declarations and more on institutional mechanisms, financial connectivity, technological cooperation and sustained political consensus. For India, the challenge is to strengthen BRICS as an effective instrument of strategic autonomy and multilateral reform, while ensuring that differences with China do not undermine the broader developmental agenda.

Source : The Hindu