New Delhi Tests BRICS Power: From Xi–Modi Engagement to an Alternative Financial Architecture

Avinash Sharma

The 18th BRICS Summit in New Delhi has emerged as an important diplomatic platform focused on the changing global balance of power, reform of international financial governance and the growing role of the Global South. Taking place amid the Ukraine conflict, instability in West Asia, trade tensions and mounting pressure on global supply chains, the summit is signalling an effort to move BRICS beyond political dialogue toward more practical structures of economic cooperation.

Three themes have already emerged prominently. The first is reform of the United Nations and global financial institutions. The second is the development of mechanisms to facilitate trade, investment and cross-border payments among BRICS members. The third is the evolving strategic relationship among major powers such as China, India and Russia.

Xi–Modi Meeting at the Centre of Diplomatic Attention

One of the most closely watched developments is the anticipated bilateral meeting between Chinese President Xi Jinping and Indian Prime Minister Narendra Modi. China has confirmed that the two sides have been coordinating arrangements for a meeting between the leaders.

Chinese Ambassador to India Xu Feihong has said China and India should properly manage their differences, become good-neighbourly friends and serve as partners that contribute to each other’s success. The language coming from Beijing indicates an attempt to move the relationship away from prolonged tension and toward a more manageable form of coexistence and cooperation.

If the Xi–Modi talks take place, border management, trade, investment, direct connectivity and the rebuilding of political confidence are expected to feature prominently. However, according to the latest available information, no new bilateral agreement has yet been confirmed. Expectations must therefore be clearly distinguished from actual outcomes.

The significance of a Xi–Modi dialogue extends well beyond BRICS. If Asia’s two major powers can establish a more stable relationship, the consequences could be felt not only within BRICS but also across the wider Asian strategic balance and the political influence of the Global South.

Modi–Putin Talks Reinforce Economic Ties

Russian President Vladimir Putin and Prime Minister Modi have already held bilateral talks. Both leaders reaffirmed their commitment to strengthening the India–Russia Special and Privileged Strategic Partnership.

Trade, energy, defence, industrial production and broader economic cooperation were among the major areas of discussion. India and Russia also reiterated their objective of increasing bilateral trade to $100 billion by 2030.

Putin has argued that BRICS should not remain merely a geopolitical discussion platform but should develop into a practical framework for cooperation in business, technology, investment, infrastructure and payment systems.

This reflects an important shift inside BRICS. The debate is increasingly moving beyond criticism of the Western-dominated international order toward the more difficult question of how alternative economic mechanisms can actually be built.

Modi–Guterres Talks Put Global Governance Reform in Focus

Another important development has been the meeting between Prime Minister Modi and United Nations Secretary-General António Guterres. The two discussed the need to reform multilateral institutions, including the UN Security Council, so that they better reflect contemporary global realities.

The impact of the conflicts in West Asia and Ukraine on the world economy, food and fertiliser supplies was also discussed. Freedom of maritime navigation and the risks posed by lethal autonomous weapons were among the broader security issues raised.

The political significance is considerable. BRICS has long called for greater representation of developing and emerging economies in global institutions. The fact that institutional reform featured prominently in discussions with the UN Secretary-General reinforces its position as one of the central political themes of the New Delhi summit.

Financial Cooperation Shows the Most Concrete Progress

The clearest institutional progress ahead of the leaders’ summit has come from BRICS finance ministers and central bank governors. They have called for reforms in the governance of the International Monetary Fund, the World Bank and other global financial institutions to provide emerging and developing economies with representation more consistent with their growing economic weight.

They have also supported further work to make cross-border payments faster, cheaper and safer, while improving interoperability among the national payment systems of BRICS members.

This is important because the BRICS financial debate cannot be reduced simply to replacing the US dollar. The more immediate practical questions concern lowering transaction costs, reducing vulnerability to financial restrictions and building more direct links among national financial systems.

Digital Currency and Alternative Payments Remain Proposals

Various proposals have been discussed to connect central bank digital currencies, expand the use of national currencies in trade and develop alternative payment mechanisms within BRICS. These, however, should not yet be described as final summit decisions.

Technical complexity, differences among national financial systems, currency risks and security sensitivities make such integration difficult. The final New Delhi Declaration will therefore be closely examined to determine how far the leaders are prepared to institutionalise these ideas.

The distinction is important. Reform of global financial institutions and efforts to improve cross-border payments are confirmed areas of agreement. Claims that BRICS has already created a common currency, a fully integrated digital currency system or an immediate substitute for the Western financial system would go beyond the available facts.

An Expanded BRICS Carries Greater Political Weight

Indonesian President Prabowo Subianto has arrived in New Delhi, while Malaysian Prime Minister Anwar Ibrahim and Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan are among the other leaders participating in summit-related engagements.

BRICS is no longer confined to its original five members. Its expansion has strengthened representation from Southeast Asia, West Asia, Africa and Latin America. At the same time, enlargement has increased the diversity of national interests, security priorities and foreign-policy approaches within the grouping.

The real strength of BRICS therefore cannot be measured by membership numbers alone. Its future will depend on whether countries with significantly different political and economic interests can build a workable minimum strategic consensus.

Ukraine and West Asia Present a Difficult Test

The Ukraine conflict and instability in West Asia are among the most sensitive geopolitical issues confronting the summit. BRICS members do not hold identical positions on either crisis, making the language of the final declaration particularly important.

India continues to emphasise dialogue, diplomacy and strategic autonomy. Russia approaches the discussion from its own security and geopolitical perspective. China stresses multipolarity and a stronger role for the Global South. Iran’s participation brings West Asian security concerns directly into the BRICS framework.

Whether these different positions can be translated into meaningful common language will be an important test of the summit’s political effectiveness.

Extraordinary Security Across New Delhi

New Delhi has introduced a multilayered security arrangement for the summit. Bharat Mandapam, hotels accommodating foreign leaders, airports and major movement routes are under heightened surveillance.

NSG and SWAT commandos, more than 500 surveillance cameras and anti-drone systems have been deployed. Indian security agencies are also coordinating with the security teams and special transport arrangements accompanying high-profile leaders such as Xi Jinping and Vladimir Putin.

What Will Emerge From New Delhi?

The success of the 18th BRICS Summit will not be determined by political statements or the traditional leaders’ photograph alone. It will ultimately be judged by several concrete questions.

Can BRICS develop a clearer roadmap for reforming the United Nations and global financial institutions? Can it turn discussions on cross-border payments and national currencies into workable mechanisms? Can the improving dialogue between China and India produce tangible results? And can members agree on meaningful common language regarding Ukraine and West Asia?

Developments so far suggest that BRICS is attempting to move from political declarations toward institutional economic cooperation. Yet digital currency interoperability, new alternative financial structures and common positions on major geopolitical conflicts have not yet become final decisions.

The most consequential moments of the New Delhi summit therefore still lie ahead. The Xi–Modi talks, the full leaders’ sessions and the final New Delhi Declaration will provide the clearest indication of whether BRICS will remain primarily a platform expressing dissatisfaction with the existing world order or evolve into a more influential centre capable of constructing its own economic and political architecture.