What is the common examiner trap about Intl. Relations in UPSC exams?

Examiners may confuse BRICS GDP share (PPP) with nominal GDP, or mix up the year of expansion (2024 vs 2025 for Indonesia). Also, they may ask about BRICS currency vs BRICS Pay: the article clarifies that a single BRICS currency has been shelved; BRICS Pay is a decentralised payment linkage system, not a new currency.

What should UPSC aspirants remember about Intl. Relations for Prelims?

1. Target this Data: BRICS GDP (PPP) 36.8% vs G7 29% (2024); Intra-BRICS trade $1.17 trillion; NDB approved $44 billion across 141 projects. 2. Target this Event: 18th BRICS Summit, New Delhi, Sep 12-13, 2026; BRICS Pay system unveiled. 3. Target this Concept: BRICS expansion: 11 members (incl. Indonesia, Iran, UAE, etc.); India's multi-alignment strategy.

International RelationsEconomy

Take AI Challenge ▸

News 1 of 17

India Hosts 18th BRICS Summit in New Delhi: BRICS GDP (PPP) 36.8% Surpasses G7’s 29%

Q: Which institution, proposed by India at the 2012 New Delhi summit, became a multilateral development bank for BRICS nations?

New Development Bank (NDB), India proposed a BRICS development bank at the 2012 New Delhi summit, which became the New Development Bank (NDB). By mid-2026, the NDB had approved approximately $44 billion across 141 projects.

Q: Consider the following statements regarding the BRICS grouping: 1. BRICS now accounts for approximately 36.8% of global GDP on a purchasing power parity (PPP) basis, surpassing the G7's share. 2. The idea of a single BRICS currency has been actively pursued and is likely to be unveiled at the 2026 summit. 3. India and the UAE have operated a rupee-dirham local currency settlement system since July 2023. Which of the statements given above is/are correct?

Both 1 and 3, Statement 1 is correct: BRICS GDP (PPP) share in 2024 was 36.8% vs G7's below 29%. Statement 2 is incorrect: the article states that the idea of a single BRICS currency has been largely shelved due to US threats, and the BRICS Pay system (not a currency) will be unveiled. Statement 3 is correct: India and UAE have operated a rupee-dirham local currency settlement since July 2023.

Q: According to the article, what was the value of intra-BRICS merchandise trade in 2024?

$1.17 trillion, The article states that intra-BRICS merchandise trade reached $1.17 trillion in 2024, a nearly 13-fold increase from $84 billion two decades ago. Option A ($84 billion) is the trade figure from two decades ago, option C ($5.2 trillion) is combined foreign reserves, and option D ($8.45 billion) is the India-Indonesia local currency trade figure for early 2026.

Q: What is the primary objective of the BRICS Pay system set to be unveiled at the September 2026 summit?

To link national payment rails of member states, allowing trade settlement without routing through dollar correspondent banks, The BRICS Pay system will link national payment rails (Russia's SPFS, China's CIPS, India's UPI, Brazil's Pix) to allow member states to settle trade without routing through dollar correspondent banks. This is described as 'de-dollarisation through the back-door'. It is not a single currency (option A), nor does it aim to replace the dollar as a reserve currency (option C), and it is separate from the NDB (option D).

Intl. Relations EconomyCORE

Target:UPSC GS-IIMPSCSSC GATeachingBankingPrelims HighMains HighStatic GK Link

06 Sept 2026

~2 min

Source: Indian Express

Key Data:36.8% GDP (PPP)29% G7 GDP (PPP)$1.17 trillion intra-BRICS trade$5.2 trillion foreign reserves78.2% mineral coal production3.8% growth 2025

Bodies:BRICSNew Development Bank (NDB)RBI

Practice MCQs from today's news ▸

~2 min · Quick mode

What This Article Covers

1.India hosts 18th BRICS Summit in New Delhi (Sep 12-13, 2026) marking 20 years of the bloc.

2.BRICS GDP (PPP) 36.8% (2024) surpasses G7’s 29%; intra-BRICS trade at $1.17 trillion.

3.Key divergences: China/Russia push anti-West agenda; India/Brazil prefer economic reform focus.

The Big Picture

Prelims · HighMains · High

India is hosting the 18th BRICS Summit in New Delhi (Sep 12-13, 2026) as the bloc marks 20 years. BRICS now accounts for 36.8% of global GDP (PPP) versus G7’s 29%, and intra-BRICS trade hit $1.17 trillion in 2024. Key tensions include the bloc’s purpose (anti-West vs. economic forum), Iran-UAE conflict, and de-dollarisation via BRICS Pay. For UPSC/competitive exams, this is a high-relevance topic covering IR, economy, and India’s multi-alignment strategy.

Exam Lens

Quick Exam Facts From News

BRICS GDP (PPP) 202436.8% of global

G7 GDP (PPP) 2024Below 29% of global

Intra-BRICS Trade (2024)$1.17 trillion

BRICS Combined Foreign Reserves~$5.2 trillion

Mineral Coal Production78.2% of global

BRICS Growth Projection 20253.8%

BRICS Growth Projection 20263.7%

NDB Approved Projects~$44 billion across 141 projects

India-UAE Local Currency SettlementSince July 2023

India-Indonesia Rupee-Rupiah Trade Surge163% YoY to $8.45 billion (early 2026)

Dollar Share in Global Reserves (Q1 2026)57.13%

BRICS Summit Date & VenueSep 12-13, 2026, New Delhi

1-Minute Revision

›BRICS GDP (PPP) 2024: 36.8% of global
›G7 GDP (PPP) 2024: Below 29% of global
›Target this Data: BRICS GDP (PPP) 36.8% vs G7 29% (2024); Intra-BRICS trade $1.17 trillion; NDB approved $44 billion across 141 projects.
›Target this Event: 18th BRICS Summit, New Delhi, Sep 12-13, 2026; BRICS Pay system unveiled.
›Target this Concept: BRICS expansion: 11 members (incl. Indonesia, Iran, UAE, etc.); India's multi-alignment strategy.

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

News Snapshot

🌍

BRICS vs G7: Economic Shift

BRICS now accounts for 36.8% of global GDP (PPP) vs G7's 29%, marking a major power shift over two decades.

⚖️

Internal Divergence: Anti-West vs Economic Reform

China and Russia push BRICS as a counterweight to the West; India and Brazil see it as an economic reform platform.

💱

De-dollarisation via BRICS Pay

BRICS Pay system linking national payment rails (UPI, SPFS, CIPS, Pix) will be unveiled at the 2026 summit, enabling trade without dollar routing.

Detailed Analysis & Strategic Depth

Context & Background

BRICS began as BRIC in 2006 following a Goldman Sachs projection, evolving from a foreign ministers' dialogue to a leaders' forum. South Africa joined in 2010, and the bloc expanded in 2024 to include Egypt, Ethiopia, Iran, Saudi Arabia, UAE, with Indonesia becoming the 11th member in January 2025. The grouping marks 20 years in 2026, with India hosting the 18th summit in New Delhi.

Core Analysis & Implications

The article highlights a fundamental tension: China and Russia view BRICS as an anti-Western bloc, while India and Brazil see it as an economic reform platform. This divergence was evident when Russia demanded oil payment in yuan (India refused), and when India signed a framework trade agreement with the US in Feb 2026 to halt Russian oil purchases. Further, BRICS expansion introduced sharp contradictions, exemplified by the Iran-UAE conflict at the May 2026 Foreign Ministers' meeting, which failed to produce a joint declaration for the first time. On de-dollarisation, BRICS Pay will link national payment systems (India's UPI, Russia's SPFS, China's CIPS, Brazil's Pix) to bypass dollar correspondent banks. However, the dollar still accounts for 57.13% of global central bank reserves.

Future Outlook & Way Forward

India faces a demanding agenda as host: managing conflicts involving Iran, Israel, US, and Russia-Ukraine, while building consensus on a joint declaration. Beyond geopolitics, the summit will focus on resilient supply chains, reform of global financial institutions, strengthening the NDB, and expanding intra-BRICS trade. India can contribute by preserving BRICS' original reform agenda while making the grouping more practical through digital public infrastructure, climate finance, health cooperation, critical minerals, local-currency payments, and inclusive connectivity.

Key Facts at a Glance

BRICS GDP (PPP) 202436.8% of global

G7 GDP (PPP) 2024Below 29% of global

Intra-BRICS Trade (2024)$1.17 trillion

BRICS Combined Foreign Reserves~$5.2 trillion

Mineral Coal Production78.2% of global

BRICS Growth Projection 20253.8%

BRICS Growth Projection 20263.7%

NDB Approved Projects~$44 billion across 141 projects

India-UAE Local Currency SettlementSince July 2023

India-Indonesia Rupee-Rupiah Trade Surge163% YoY to $8.45 billion (early 2026)

Dollar Share in Global Reserves (Q1 2026)57.13%

BRICS Summit Date & VenueSep 12-13, 2026, New Delhi

You've read the full analysis. Now test your understanding.

Practice exam-style questions based on this article.

Q1Static LinkageEasyUPSC, SSC, Banking

Which institution, proposed by India at the 2012 New Delhi summit, became a multilateral development bank for BRICS nations?

Q2Statement-basedHardUPSC, SSC

Consider the following statements regarding the BRICS grouping:

1. BRICS now accounts for approximately 36.8% of global GDP on a purchasing power parity (PPP) basis, surpassing the G7's share.

2. The idea of a single BRICS currency has been actively pursued and is likely to be unveiled at the 2026 summit.

3. India and the UAE have operated a rupee-dirham local currency settlement system since July 2023.

Which of the statements given above is/are correct?

Q3Data-centricMediumUPSC, SSC, Banking

According to the article, what was the value of intra-BRICS merchandise trade in 2024?

Q4Application/ImpactMediumUPSC, SSC, Banking

What is the primary objective of the BRICS Pay system set to be unveiled at the September 2026 summit?

All 15 MCQs ▸

Read original article from Indian Express

You finished this topic

Practice 3 MCQs from this news Next Article

Explore Related Topics

Intl. RelationsView Topic MCQs →EconomyView Topic MCQs →

Next SCO 26th Summit Bishkek: Condemns Strikes on Iran, Backs Inclusive Afghanistan, Pakistan Takes Chair

Related Current Affairs

Intl. Relations Current Affairs

India Hosts 18th BRICS Summit Sept 12-13 2026; Group Now 45% of World Population, 37% of GDP (PPP)

India's 2026 BRICS presidency culminates in the 18th Summit in New Delhi (Sept 12-13). The expanded BRICS, accounting for 45% of world population and 37% of global GDP (PPP), faces internal cohesion challenges. Success will be judged by tangible outcomes like NDB lending, local currency trade, and technology cooperation, not just declarations.

Intl. Relations Current Affairs

BRICS Summit 2026: India Hosts Xi Jinping, Putin Amid Western Sanctions, TRIPS Waiver, CBAM Concerns

India hosts the 2026 BRICS summit (September 12-13) with Xi Jinping, Putin and Iran's President amid escalating Western sanctions against key members. The article explains why India may need BRICS as a risk mitigant against the weaponisation of the Western financial system, covering SWIFT bans, TRIPS waiver denial, Chabahar sanctions and CBAM trade barriers. For exams, this is a ready case study on Global South's push for alternative financial architecture.

Intl. Relations Current Affairs

BRICS Summit 2026: India Hosts Leaders; Proposes UPI-Linked Payment Interoperability & NDB Reform

India's hosting of the 2026 BRICS summit offers a strategic opportunity to redefine the bloc as a platform for choice rather than alignment. Key proposals include a UPI-based interoperability protocol for payment systems, NDB governance reform, and a principles-based statement on Ukraine and Gaza. This positions India as a vanguard of a multipolar, non-hegemonic Asia.

Intl. Relations Current Affairs

India Hosts 18th BRICS Summit in Delhi Amid Expanded Membership and US Tariff Threats

India is hosting the 18th BRICS Summit in Delhi, its second major multilateral hosting after G20 2023. The summit faces challenges from internal conflicts (Iran-UAE tensions) and external pressure from US tariffs over de-dollarization efforts. Success would boost India's diplomatic stature and signal BRICS resilience.

Intl. Relations Current Affairs

India Hosts 18th BRICS Summit 2026: New Delhi Declaration, Pahalgam Condemned, China Endorsed for 2027 Chair

The 18th BRICS Summit hosted by India concluded with the adoption of a 140-point New Delhi Declaration that navigated deep member differences, explicitly condemned the April 2025 Pahalgam terror attack, and endorsed China as the 2027 chair. PM Modi and Xi Jinping met to stabilize ties after the Galwan clash, while India proposed a BRICS Continuity Mechanism to ensure follow-through across presidencies.

Intl. Relations Current Affairs

Xi Jinping at 18th BRICS Summit in Delhi; India's $112 Bn Deficit with China and US Tariff Risks

Xi Jinping visits India after 7 years for the 18th BRICS Summit, as India navigates a widening $112 billion trade deficit with China and US scrutiny on tariff circumvention. India's BRICS chairship aims to build production capacity, balancing Chinese investment and American market access.

Intl. Relations Current Affairs

18th BRICS Summit (Sep 12-13, 2026) in New Delhi: India Aims to Restore Original Purpose of Expanded Group

India hosts the 18th BRICS Summit in New Delhi on September 12-13, 2026, aiming to restore the group's original purpose as a platform for emerging economies to reform global governance. Facing China's push to turn BRICS anti-West and internal conflicts among new members, India seeks to steer the expanded grouping towards a 'non-West' middle-power agenda, reviving its 'reformed multilateralism' vision.

Intl. Relations Current Affairs

Brazil-India Trade Nears $20 Billion, BRICS Not Anti-Western, Says Brazil FM

Brazil's Foreign Minister Mauro Vieira highlights rapidly growing Brazil-India bilateral trade, nearing $20 billion with a $30 billion target by 2030. He clarifies that BRICS is not an anti-Western bloc and has no intention to replace the US dollar, while the New Development Bank aims to reform global governance. The interview also covers the pause in BRICS expansion and Brazil's deepening engagement with ASEAN.

Start Today's Quiz(15 Qs)

Take Today's Quiz

15 Qs • 5-7 Mins

India Hosts 18th BRICS Summit in New Delhi: BRICS GDP (PPP) 36.8% Surpasses G7’s 29%

Exam Lens

Quick Exam Facts From News

1-Minute Revision

News Snapshot

BRICS vs G7: Economic Shift

Internal Divergence: Anti-West vs Economic Reform

De-dollarisation via BRICS Pay

Detailed Analysis & Strategic Depth

Context & Background

Core Analysis & Implications

Future Outlook & Way Forward

Prelims Flashpoints

Key Facts at a Glance