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Indian summer: The BRICS summit and warming New Delhi-Beijing relations
Problem
The BRICS summit concluded in New Delhi on Sunday, with Indian prime minister Narendra Modi having hosted the two-day gathering as chair. As with many meetings of the group of emerging economies, this edition brought together the leaders of China, India and Russia and featured plenty of anti-Western rhetoric. This was also Chinese leader Xi Jinping’s first visit to India for more than six years, in the latest example of Sino-Indian normalisation following a sustained period of tensions.
New Delhi’s normalisation with Beijing over the last year looks like more of a tactical de-escalation than a realignment. Nevertheless, India has over that time begun to agree more measures to provide greater access to Chinese investment in manufacturing and climate technology, both areas important for India’s development. This should act as a warning for Europeans. If India cannot source technology and capital from partners in Europe, it will seek to do so from China even while remaining suspicious of Beijing from a security point of view.
Solution
New Delhi continues to view Beijing as a threat and seeks deeper security and economic ties with Brussels, as well as with Washington, despite the difficulties President Donald Trump presents. Modi has thus worked to prevent the BRICS from tipping into a purely anti-Western vehicle, since this would run against India’s interests.
Europeans also see India as an increasingly vital partner, following the EU-India trade deal agreed earlier this year, as Europeans diversify geopolitically in the face of tense transatlantic relations. But India’s bilateral agreements with China, including on the sidelines of the BRICS meeting, show that the EU must not take the mutual benefits of closer ties for granted.
Ahead of Modi’s anticipated visit to Brussels later this year, the EU should accelerate its plans further to strengthen Europe-India ties. For instance, it should enhance the existing Trade and Technology Council to drive cooperation in areas like AI, while also moving forward cooperation on defence and security, and making faster progress on India’s plans to join the Horizon Europe funding programme for research and innovation.
Context
The EU and India signed a landmark free-trade agreement in New Delhi in January, alongside a new security and defence partnership. Both sides aim to build on these with wider cooperation initiatives to encourage greater cooperation and investment in areas like semiconductors, AI and clean-tech supply chains.
India supported moves at the 2023 BRICS summit to agree on a major membership expansion. The group began as a much smaller coalition of just Brazil, Russia, India and China, and South Africa—hence “BRICS”—but has since grown to eleven members, including Egypt, Ethiopia, Iran, Saudi Arabia and the UAE as well as a wider grouping of observer and partner countries that attend summits and align themselves loosely with the bloc’s agenda. The group is internally divided, and not just in terms of China and India. Both Iran and the UAE are members, for instance, despite longstanding regional tensions. This year’s summit produced a limited declaration including vague promises to enhance cooperation.
