In the current geopolitical and economic scenario, pragmatic multilateralism is the need of the hour. Post the G20 Presidency of 2023, India assumes the presidency of BRICS (a major grouping of developing countries and emerging economies) in 2026. This presidency is uniquely positioned at the intersection of the 20th anniversary of the bloc’s inception and a period of deep international trade volatility. The core challenge for India lies in utilising this leadership role to give guidance, building resilience, innovation, cooperation and sustainability. Steps are required for focusing on maintaining a moderate face, consolidating G20 gains and engineering structures that encourage global cooperation and trade.

What India's Focus Should Be

The 2026 presidency follows the XVII BRICS Summit in Rio de Janeiro, which established a clear mandate for the Global South to assert its voice in global governance. Under the theme of Strengthening Global South Cooperation for a More Inclusive and Sustainable Governance, the Brazilian presidency focused on climate finance, artificial intelligence (AI) governance, and the consolidation of the expanded BRICS+ configuration.

India’s task is to translate these broad thematic commitments into concrete, institutionalised frameworks that facilitate faster trade, secure supply chains, and sovereign-oriented financial settlement systems.

Some of the possible strategies for moving ahead cooperatively can be categorised into short-term gains and long-term focus areas.

BRICS Grain Exchange

Some of the critical short-term gains include the creation of a BRICS Grain Exchange. Currently, global grain prices are largely determined by Western exchanges and settled in US dollars, making developing nations vulnerable to speculative price shocks and currency fluctuations.

The proposed BRICS Grain Exchange would facilitate direct farmer-to-market links, allowing major producers such as Russia and Brazil to trade directly with large consumers such as India and Egypt.

Further, local currency pricing could reduce the transaction costs and exchange rate risks associated with dollar-based commodity trading. Predictable export markets could help governments hedge against food security crises triggered by geopolitical tensions or maritime blockades.

This exchange is viewed as a "geological and investment platform" that could eventually expand to other critical minerals and energy resources, further insulating BRICS economies from external shocks.

Trade And Logistics

India’s presidency offers an opportunity to shift the trade conversation from tariff policies to trade facilitation. Priorities could include harmonisation of customs procedures, mutual recognition of standards in selected sectors, expansion of paperless trade, and cooperation among customs authorities to reduce dwell times at ports and borders.

These reforms, while technical in nature, can yield substantive benefits in lowering transaction costs.

The grouping could pilot cooperation in a handful of sectors where complementarities are evident. These include pharmaceuticals, agri-processing, renewable energy components, digital services, and critical minerals processing. Such targeted initiatives would allow members to build trade relations incrementally while generating early wins.

BRICS summit statements stress boosting trade in a way that promotes “inclusive growth and sustainable development”.

To achieve this, India needs to push for the removal of barriers, besides modernising supply chains, streamlining logistics, and reducing transaction costs. Multilateral cooperation can help mitigate trade-restrictive measures.

International North-South Transport Corridor

Promoting infrastructure and boosting the transport of goods through alternative routes would enable smooth and seamless movements. The International North-South Transport Corridor (INSTC) – a 7,200 km multimodal route linking India with Russia and Europe via Iran – exemplifies India’s strategic path to Eurasian markets. Recent data show freight on the INSTC grew about 19% in 2024, to nearly 27 million tonnes.

Analysts note that the INSTC is roughly 30% cheaper and 40% faster than the traditional Suez Canal route, and is expected to boost bilateral trade between Mumbai, Moscow, Tehran, Baku, and other hubs. India should continue investing in these corridors.

Long-term strategies can work well with a wider time horizon and perspective. Currency alternatives are a possible strategy option. 

Currency Alternatives

India’s presidency could reframe the debate for a common BRICS Currency and de-dollarisation, by emphasising pragmatism over symbolism. The most realistic pathway lies not in creating a single currency, but in expanding the use of local-currency settlements for trade and investment among willing members. Bilateral and plurilateral arrangements, supported by central bank cooperation and risk-mitigation instruments, can gradually reduce foreign exchange exposure without destabilising domestic economies.

Equally important is the development of interoperable payment systems. India’s experience with digital public infrastructure (DPI) offers valuable lessons in building fast, low-cost payment rails at scale.

While no single model can be transplanted wholesale, BRICS could explore technical interoperability among domestic fast-payment systems, particularly for retail and SME transactions. Over time, this could lower costs and enhance financial inclusion across borders.

In practice, the BRICS Payment Task Force has already mapped a “technical report” for faster, low-cost transfers. India’s presidency can aim to finalise a roadmap. Key elements include agreeing on common message standards and governance rules for digital currencies, and expanding bilateral swap lines to buffer imbalances.  

India can advocate that the rupee, real, yuan and rand be added to the basket, and that eligible new members (such as Saudi Arabia or the UAE) be quickly admitted.

Leveraging New Development Bank (NDB)

Financing infrastructure and sustainable projects is crucial to realise the abovementioned ambitions, and the BRICS New Development Bank (NDB) is India’s principal instrument. As the founding member, India has been a leading advocate within NDB for sustainable infrastructure: clean energy, digital networks, and transport corridors – all pillars of India’s own development vision.  

It raised about US$16.1 billion in 2024 through global bond issuances, secured AAA ratings, and even issued renminbi and yen bonds at favourable rates. This liquidity surge means the NDB can now greatly accelerate lending in BRICS and beyond. With funding of 18 projects amounting to U$6.9 billion, India continues to have major stakes in funding by NDB.

The prevailing geoeconomic landscape offers India’s BRICS presidency a rare strategic opening to advance pragmatic multilateralism — strengthening global trade integration, deepening engagement with major economies, and shaping a cooperative framework resilient to volatility and fragmentation.

The Way Forward

India can lead the way, enable global cooperation inclusively, facilitate faster and more regulated cross-border transactions, and act as a moderating force that propels the way forward for the BRICS countries.

India’s presidency can enhance and strengthen the Rio Summit’s trade pillar, making it easier, cheaper, and fairer to move goods and services within the BRICS region.

(Rupa Dutta is a distinguished Indian Economic Service officer. Utsav Nayak is a Research Consultant at the Centre for Economy and Trade, Chintan Research Foundation. Views expressed are personal.)