The BRICS gathering in New Delhi brought into clearer relief the parallel trajectories of the bloc's development and the shifting bilateral ties between India and China. Both occurrences point to a shared root cause.
Nations across the world are pursuing greater flexibility in their economic and diplomatic relationships, avoiding binding ties to any single bloc or alliance. The New Delhi Declaration positions BRICS as an independent body rather than a rival to any US-aligned grouping. The organisation aims to expand the pathways available to member states for boosting trade and strengthening their economic foundations.
The talks between Narendra Modi and Xi Jinping offer a practical example of how that strategy might function. Partnerships may grow even where mutual confidence is constrained; trade and financial ties can deepen without creating dependency; and disagreements can be managed without requiring full resolution.
The transformation of BRICS is unfolding at a time when the international order has grown too complex to be defined simply by rivalry between two dominant powers. Ongoing hostilities in Ukraine, escalating tensions between Iran, Israel, and the United States, instability across the Gulf region, along with the growing deployment of sanctions, tariffs, and trade restrictions as instruments of geopolitical leverage, have collectively reinforced the strategic importance of diversifying international partnerships.
For a number of its member states, BRICS provides a multilateral platform through which they can engage with both China and Russia while maintaining ties with the United States, Europe, and other key partners. The relationship between India and Russia offers a clear illustration of this dynamic. Their bilateral discussions, held on the sidelines of the summit, spanned political, economic, defence, energy, space, and other areas of mutual cooperation between Modi and Putin. Talks between the parties also covered how ongoing hostilities in West Asia and the Black Sea region have been affecting shipping and sea-borne commerce.
New Delhi maintains longstanding ties with Moscow across defence, energy, and other strategic domains, even as its partnerships with Washington, European nations, Japan, and Gulf states have grown considerably. The stated aim is to preserve flexibility across sufficient partnerships, markets, technologies, energy supplies, and defence capacities so that no single factor can dictate the country's broader strategic direction, rather than replacing one form of external dependency with another.
The New Delhi Declaration embodies a comparable pragmatism at the institutional level. The agreement covers collaboration across sectors including manufacturing, supply chains, minerals, energy, artificial intelligence, digital infrastructure, health, agriculture, and finance. The focus falls on settling transactions in national currencies and improving connectivity across domestic payment networks. While it falls short of establishing a new monetary order to rival the US dollar, the arrangement opens up alternative pathways for conducting financial transactions.
At a meeting in New Delhi, Xi Jinping called on both nations to view each other as collaborative partners rather than competitors, arguing that the economic advancement of each country would generate mutual opportunities. China has put forward the view that bilateral ties should be approached with a long-term, strategic outlook, alongside broader collaboration on development matters and global governance frameworks.
Strong economic incentives underpin the push to mend ties between the two nations. Subdued consumer spending, a troubled real estate sector, elevated debt levels, and persistent deflationary pressures have pushed China toward seeking out fresh overseas markets for both goods and capital. Concurrently, the scale of China's economy and the expanding deployment of trade barriers render export-led growth an increasingly constrained development pathway. As Beijing faces pressure to maintain economic momentum, access to India's large consumer market, the utilisation of its growing industrial output, and a stable bilateral trade relationship all take on greater relevance. Beijing has an interest in maintaining its manufacturing edge while limiting the growth of rival economies that could threaten its position in global markets.
The position put forward by Modi was notably more hedged than the one advanced by Xi. He emphasised the importance of shared respect, thoughtful consideration, and common interests. Stable and peaceful border conditions, he stated, formed the bedrock upon which stronger ties between the two nations could be built. He contended that divergences ought to remain separate from confrontation. New Delhi maintains its position that the territorial dispute must be resolved through an equitable and mutually agreeable process.
The diplomatic thaw between India and China represents a measured easing of tensions rather than a full normalisation of ties. Doubts about reliability remain unresolved. New Delhi's assessment of Beijing's partnership commitments will rest not merely on formal diplomatic statements but equally on observable conditions along the Line of Actual Control.
India's stated stance remains well-defined. The approach envisions a stabilised security footing — one that allows for economic and diplomatic ties while preserving the ability to compete with China and hold firm where national interests diverge.
The bilateral ties between India and China appear to mirror the underlying dynamics that characterise BRICS as a grouping. New Delhi's foreign policy framework allows for parallel engagement with Beijing on trade and commerce, Moscow on energy supplies and military procurement, Washington and European capitals on technology transfer and capital flows, and Tokyo alongside Gulf nations across a broad spectrum of economic and strategic interests. Beijing, for its part, retains the option of pursuing ties with New Delhi without demanding that India sever its existing partnerships with other nations.
The New Delhi gathering reflects a BRICS organisation that appears driven by institutional ambition while maintaining a measured approach to political commitments. Talks over the Middle East region highlighted the persistent challenge facing an enlarged bloc of member states — with varying priorities — in forging unified stances on international conflicts. Relations between India and China are expected to represent one of the more demanding aspects of that broader process.
