International Relations

• The term was coined by Jim O Neil, an economist at Goldman Sachs, in 2001 as BRIC (Without ‘S’)
• BRIC was officially formed at the Yekaterinburg summit in 2009. Later, South Africa joined the bloc in 2010, and it became BRICS.
• It is an ‘Economic grouping with political motives’.
• The notion behind the coinage was that these nations’ economies would collectively dominate global growth by 2050. Along with that, if BRICS nations start to trade in their domestic currencies, it would break the dominance of the dollar.

• Membership (10): Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, UAE and Indonesia.
• It is a non-western multilateral economic organization.
• Purpose goals: economic and geopolitical.
• Norms: BRICS follows the norms of non-interference in each other’s internal affairs and respects other international institutions.
• BRICS is against uni-polarity and searches for multipolarity.

BRICS is a unique organization of countries that came together not because of geography, history or wealth, but because of their promise as key “emerging economies”.

• Western economies faced the 2008 financial crisis while the BRICS nations kept on growing during that phase.
• IMF and World Bank have become unrepresentative institutions dominated by western economies. BRICS countries shared a common objective of reforming the international financial and monetary system dominated by IMF and World Bank.
• Search for multipolarity was another reason for the formation of BRICS.

• Economic Importance :
  • The combined GDP of BRICS nations account for roughly 25% of the total gross world GDP. 
  • BRICS nations are the fastest-growing economies of the world.  
  • BRICS nations are lucrative investment destinations in the world. 
  • Emerging multilateral financial institutions like AIIB and BRICS Bank are alternatives to Western-dominated World Bank and IMF. 

• Political and military: China, Russia, and India are the most powerful countries by military strength after the US, with advanced naval forces.   

• Demographic: BRICS nations account for nearly 42% of the world population, with a considerable number in working-age groups.
• Dedollarisation: BRICS countries can become champions of Dedollarisation, which is used by the USA as a political weapon to further its interests.
• BRICS aligns with India’s multilateral approach and gives a bigger voice to the Global South.

• BRICS membership elevates India’s global profile. China may still not be interested in dehyphenating India and Pakistan, but India’s BRICS membership automatically de-hyphenates India and Pakistan while it casts India and China as equals.

• BRICS countries have emerged as the voice of the developing countries or the economic south. Furthermore, all the BRICS nations are members of G-20 and WTO and safeguard the interests of developing countries against the aggressive club of developed countries. 

• Safe Space to modulate rivalry: BRICS provides an alternative space to keep the dialogue open in case of conflicts between the member nations. For example, during the Doklam Crisis, India and China remained engaged through BRICS.

• Competition: All BRICS countries want to become regional powers & frequently, their interests collide. 
• The dominance of the Chinese economy makes it the union of unequal members. Jim O’ Neil observed that the Chinese forex is bigger than all other BRICS nations combined.
• US Opposition: The newly elected Trump administration has adopted a strict posture towards BRICS, as it poses a danger to US and Dollar dominance in world trade.
• Members are too similar in some key areas. Hence, they don’t complement each other. Each member has the same strengths and weaknesses. 
• Too much Diversity in other areas, like starkly varying political systems, economies, and national goals.
• Geographical Separation: Members are fragmented along 4 different continents. 
• BRICS nations compete in third markets. In many areas, from clothing (China, India and Brazil), through economic influence in Africa (China, South Africa and India), etc. BRICS countries compete with one another.  
• Contradictions on Trade: Brazil and Russia are commodity-exporting countries and want high commodity prices, while China and India are importing countries.
• A large number of conflicting issues between members
  • India-China, China-Russia border disputes
  • Iran-UAE over Shia-Sunni rivalry
  • China artificially undervalues Renminbi 
  • China has ~30 trade disputes with BRICS nations. 
• Diverging stands on multilateral forums
  • NSG: China is stopping the entry of India in NSG.
  • UNSC reforms: India & South Africa want reforms while China opposes them.

The South Asian region was colonized by the British, the French and the Americans. After World War II, most countries achieved independence, but various issues emerged in its aftermath

• Issues regarding boundaries: Eg Indonesia vs Malaysia on Borneo Island
• US involvement in Vietnam due to Cold War rivalries in the region

It raised fears of increased external involvement and that the region would become a theatre of war between capitalist and communist ideologies. 

Consequently, these countries decided to come on a common platform so as to 

• Resolve the issues among the member nations.
• Present a joint front to the rest of the world.

• It was signed in 1967.
• Headquartered in Jakarta
• It consists of 10 countries

ASEAN region consists of

• 25% of the world population.
• The combined GDP is more than $5 trillion.

ASEAN has mixed track records with some major achievements but significant misses.

Good Performance

1 . Peace

• ASEAN has maintained peace in the ASEAN region by settling various disputes peacefully. E.g., the conflict between Cambodia and Thailand over Preah Vihar Temple was solved peacefully in 2011. 

2. Economy

ASEAN has made various economic trade deals such as

1. ASEAN Free Trade Area (AFTA)
2. Chiang Mai Initiative (CMI)
3. ASEAN Economic Union was set up in 2015, having a single market and production base

Not so Good

1. Economy

• ASEAN failed to predict and prevent the South East Asian Financial Crisis of 1997.

2. Human rights

• ASEAN has failed to pressurize authoritarian regimes to stop human rights abuses. E.g., the Rohingya crisis in Myanmar or Coupes in Thailand and Myanmar.

3. Against Chinese hegemony

• ASEAN has shown a lack of resolve before China’s repeated provocation against ASEAN members, particularly the Philippines and Vietnam.

4. Environment

• ASEAN has failed to stop the pollution and illegal trade in endangered species.

Bloc’s longevity, as well as its relative stability—is itself a testament that one of the world’s oldest regional organizations is in the right direction.

• India’s 10% trade is with ASEAN 
• ASEAN is the biggest FDI investor in India, with up to $80 billion.

Timeline of India-ASEAN relations

Fun Fact: Sukarno (erstwhile President of Indonesia) was the Chief Guest at India’s first Republic Day in celebrations in 1950.

1. Strategically

• ASEAN nations are strategically located at the intersections of major land and sea routes (including the Strait of Malacca).
• Containing China: India can align with partners like Vietnam, Singapore etc., to counterpose China. 

2. Energy

• Myanmar has rich oil reserves.
• ONGC Videsh Limited has invested in the petroleum reserves of Vietnam.

3. Economy

• Trade between India and ASEAN stood at $65 billion in 2015-16, constituting 10% of India’s total trade. 
• ASEAN provides an opportunity for Indian businesses to integrate with global supply chains. 
• We have signed the FTA in Goods , FTA in Services, and Investment.  
• India eyes CMLV (part of ASEAN) for the “Make Outside India” initiative.
• Singapore is one of the leading sources of FDI in India.

4. For North-East India

• ASEAN is essential for the development of North East India. North-Eastern states can be integrated with ASEAN Supply Chains.
• For this, the following projects are going on
  • IMT Highway
  • Kaladan Multimodal Transit Corridor

5. Security

• Security of Indian Ocean Region(IOR) like piracy, illegal migration, and trafficking 

6. People to People

• Cultural Connections: Hinduism and Buddhism came to Southeast Asia from India. The Indian languages, Sanskrit and Pali, have influenced several of the region’s scripts.
• Temples like Ankorwat
• Tourism

• Trade Deficit: In 2022-23, India witnessed a trade deficit of $43.5 billion with ASEAN nations. It has also been observed that Chinese products are rerouted through ASEAN countries to claim the benefits of the India-ASEAN trade deal.
• RCEP: India has declined to join the RCEP, in which ASEAN is a significant stakeholder.
• Inadequate Infrastructure: Various projects such as IMT Highway aimed at integrating India with ASEAN have not been operational. 
• Chinese Influence: It is difficult for India to match China in investments in ASEAN nations. 

• Europe is linked to India’s colonial legacy, as India was a colony of Britain. 
• Ties are also coloured by the outlook of educated western leaders like JL Nehru, Gandhi etc. 
• Britain has a special place in Indian foreign policy due to the large Indian Diaspora in Britain.
• India can learn the art of multilateralism from European Union. EU can act as a model for creating the SAARC Custom Union. 
• India and the European Union are ‘natural partners’ because of their shared values & beliefs in democracy, pluralism, independent media & the rule of law.

1. Trade Relations

• The European Union is one of India’s largest trading partners. The bilateral trade accounts for $137.41 billion in 2023-24..  
• The European Union is the second largest investor in India, with a cumulative FDI of €70 billion since 2000. 
• The Free Trade Agreement (FTA) between India and the European Union is currently under negotiation. When signed, it would be the world’s largest, encompassing 1.8 billion people (as of 2025, the India-EU FTA is in finalization stage, and both parties are engaged in intense talks following Trump tariffs on both parties).
• But problems are present because European markets are going towards protectionism.  

2. Security Relations

• India and Europe share a common interest on
  • Defending global terrorism & extremism 
  • Securing trade lines from attacks by pirates 
  • Preventing attacks on IT infrastructure 
• The relation will be helpful in securing Indian Ocean Region because its members, like France, Italy etc., have important bases.
  • France: Reunion Island and UAE 
  • Italy: Djibouti

3. Maintain the World Order

• India and European Union have a commitment to a “rules-based” international order and a “multipolar” world.
• For UNSC Reforms, the EU is most important because of the Veto Power of France. 

4. Climate Change & Environment

• Both shares a common view toward Climate Change 
• After the withdrawal of the UK from the European Union, India-EU Cooperation has become even more important. 

5. City to City Cooperation

• There is a city-to-city cooperation between European and Indian cities such as Mumbai, Pune and Chandigarh

6. New opportunities

• Assertive China and its challenge to the existing balance of power is forcing the European Union & India to work jointly.
• Post-Brexit, India has deepened its relationship with the European Union. Earlier, all the EU trade with India was routed through London.

• The increasing wave of Protectionism in the European Union countries.
• In the WTO, both are leaders of Opposite Blocs wrt the Doha Development Agenda. 
• Issues wrt Bilateral Investment Treaty (BIT) (discussed below)
• Carbon Border Adjustment Mechanism (CBAM): CLICK HERE
• Indian agro-products are banned from entering the EU on frivolous pretexts under SPS measures of the WTO.
• Labour Issues: There are problems with the Labour Laws in India. E.g., Indian Carpets are denied entry on the pretext that the carpet industry of Mirzapur employs child labour.
• Human Rights issue: EU members have expressed concerns regarding the deteriorating human rights situation in India. 

• The region containing and surrounding the Indian Ocean is known as Indian Ocean Region. 
• Indian Ocean Region has 51 coastal and landlocked states. Hence, it is a vast region.

• The Indian Ocean has become the lifeline of world trade (& has been so since time immemorial). The Indian Ocean is important for commerce as
  • 2/3rd of world oil shipments pass through the Indian Ocean.
  • 1/3rd of bulk cargo passes through the Indian Ocean. 
  • It hosts nearly 40% of the world’s population. 

• The Indian Ocean has the world’s most important choke points,  notably the Straits of Hormuz, Malacca and Bab el Mandeb. As these choke points are important for global trade, a number of extra-regional states maintain a naval presence in the Indian Ocean. Eg
  • US: 5th Fleet in Bahrain & uses the island of Diego Garcia as an air-naval base.  
  • France: Naval bases in Djibouti, Reunion Island and Abu Dhabi

• Growing Economies: The economies of many Indian Ocean countries, such as India, Malaysia, and Tanzania, are growing rapidly and are attracting huge investments.

• Indian Ocean Region (IOR) is rich in natural resources containing
  • World’s 40% oil exploration
  • Nearly 15% of total fishing in the world
  • Mineral and natural resources like iron, copper, Zinc, manganese, gold and silver 

• China’s aggressive soft power diplomacy and Maritime Silk Road (MSR) Policy have been the most crucial element in shaping the Indian Ocean strategic environment. The US and other nations like Japan, India and Australia are also trying to counter Chinese initiatives. 

• Security issues:  Indian Ocean Region (IOR) faces many security issues, such as piracy, illegal migration, drug trade etc. 

• Indian Ocean Region is the centre stage of 21st-century politics  & India stands geographically right in the middle. South Africa, Iran, Indonesia & Australia are also part of the Indian Ocean RIM family, but none has centrality & attraction like that of India. 
• India is positioning itself as the “net security provider” in the broader Indian Ocean region.
• Due to its strategic location and capabilities, India can play a pivotal role in this region. Till now, India has played a positive role and, in the time of need, has readily helped smaller countries of the region such as Maldives (Operation NEER), Srilanka, Bangladesh etc.

1. Geostrategic Importance

• India is situated right in the middle of the Indian Ocean. 
• It is important to secure Indian Ocean Region to protect Indian ships from piracy and stop human trafficking and drug smuggling.
• 90% of Indian trade passes through the Indian Ocean. Hence, it is vital to protect our Sea Lines of Commerce (SLOC).
• Energy Security: Most of our oil supplies come from Indian Ocean Rim countries.

2. Protection of assets and islands

• Its security is important to protect Indian assets and islands situated in the Indian Ocean
  1. Islands: Andaman & Nicobar and Lakshadweep
  2. Assets: Like Bombay High 

3. Economic Importance

It is the source of resources like

1. Fishing and aquaculture
2. Deep sea mineral exploration 
3. Petroleum reserves like Bombay High 

4. Cultural Importance

• India has cultural relations with IOR countries dating back centuries.
• India has been the centre stage of Indian Ocean trade, corroborated by texts like Periplus Maris Erythraei, Jataka Stories, Sangam Poetry etc.

5. Diaspora

• A large Indian diaspora lives in Indian Ocean Rim Countries and Small Island Nations like Mauritius, Maldives, South Africa etc.

6. Countering China’s influence

• China’s aggressive soft power diplomacy has been seen as arguably the most critical element in shaping the IOR environment, transforming the entire region’s dynamics. 

7. Other

• Monsoon Mechanism: The Indian Ocean plays a vital role in keeping the Monsoon mechanism in favour of India.

Necklace of Diamonds

To counter String of Pearls, India is also making ports. India’s counter-strategy is often described as the “Necklace of Diamonds”

Making Alliances

Apart from that, India is trying to contain China by making alliances with like-minded nations. These include

• Making an alliance with Vietnam (Vietnam, too, has issues with China in the South China sea).
• Malabar practice with US & Japan.
• Formation of Quad by USA, Japan, Australia and India.

Military Modernisation

• Agni, Sukhoi, Nuclear submarines, and Aircraft Carriers-Vikramaditya and Vikrant, are not meant for Pakistan but to fight against a powerful nation like China.

Iron Curtain Policy  to counter Chinese String of pearls

• It is the term given by naval analyst Zang Ming according to which Andaman & Nicobar islands can be used as a metal chain to block Chinese access to the Strait of Malacca.
• Japan is also helping India to develop Andaman and Nicobar.

Project Mausam

• It was launched in June 2014.
• It is a Ministry of Culture project.
• Aim :
  1. The project tries to see how the monsoon winds helped maritime trade historically between Indian Ocean-connected countries. 
  2. How winds influenced local economies, scientific quests, modern statecraft, religion, politics and cultural identity

Cotton Route

• ‘Cotton Route’ has been started to strengthen economic ties between countries in the Indian Ocean rim. 

Spice Route

• The Spice Route has been started to revive old links between 31 countries in Asia and Europe with India, particularly spice-rich Kerala.

SAGAR Initiative

• Announced by the PM of India, the Sagar initiative aims at Security And Growth for All in the Region.

MAHASAGAR Policy

• Announced in 2025, 10 years after SAGAR Initiative.
• It builds on SAGAR. It extends the reach of the policy to the Indo-Pacific region.

• The capacity of the Indian defence industry to supply naval and military equipment to India and its allies is challenged by the experts. Achieving the status of net security provider can put enormous strain on the country’s finite resources and calls for a manifold increase in existing military hardware. 
• More focus on territorial boundaries: Due to its pending territorial disputes with China and Pakistan, India is forced to focus on its territorial boundaries.
• China challenges India’s status in the Indian Ocean through its Belt and Road Initiative and String of pearls.
• Opposition from other countries. E.g.:
  1. Seychelles parliament has opposed the lease of Assumption Island to India.
  2. Past Experience of Overseas Deployment of Armed Forces: The recipe of net security provider does encompass ‘Overseas Deployment’ as a vital ingredient. However, the experiences in Sri Lanka continue to have a dragging effect on any thought process involving overseas deployment.