BRICS vs. G7: India's Diplomatic Balancing in a Shifting World Order

In a world where shifts in geopolitics are growing from the established Western-led order to the emerging economies of a multipolar vision. This rebalancing is driven by the emerging economies of the global south, in particular. Forums like BRICS have emerged as a rising force against the West-led informal group, the G7. The BRICS bloc positions itself as an advocate for a more inclusive international order, to reflect the interests of emerging economies. As the relative influence of traditional Western powers moderates, rising nations have significantly increased their share of global GDP, contributing to a more multipolar economic landscape.

This highlights a significant global economic realignment that is being fueled by the rapid expansion of developing nations. This aspiration for autonomy, coupled with BRICS's advocacy for non-Western development models and emphasis on sovereignty, underlines a profound ideological divergence from the G7's traditional role.

The BRICS Bloc: A Voice for the Global South 

BRICS has emerged as a formidable group hoping to increase its recognition against the Western-centric international order. Its recent expansion to include Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates signifies a profound shift, amplifying its economic weight, demographic reach, and geopolitical influence. Argentina initially accepted the invitation but later rejected it due to its foreign policy shifts towards the West under President Javeir Milei, and Saudi Arabia has not yet finalized its membership. Recently, Indonesia became the 10th member of BRICS in January 2025. More than 30 countries are in line to join the Bloc. Furthermore, some countries like Vietnam, Senegal, Turkey, Colombia and Nigeria are aspiring or considering joining the bloc very soon. All this indicates a shift in the global order, with the rising popularity of BRICS due to its inclusive nature and its voicing of concerns from developing nations. 

The expanded BRICS (often referred to as BRICS+) now accounts for a significant portion of the world's population (45%) and a growing share of global GDP (35%), particularly when measured by Purchasing Power Parity (PPP) and producing 30% of its oil. Nations are rushing to join the bloc due to the sanctions imposed by Western countries.

Indeed, the rush to BRICS+ is also about countries seeking to avoid the painful impacts of sanctions and instead access the multitude of economic benefits on offer from BRICS+, including development finance, trade and investment. Various other groupings, such as the SCO, OPEC, African Union, and Mercosur (the Southern Common Market), are already moving towards multipolarity. The grouping is actively attracting Southeast Asian nations like Thailand and Malaysia, which have expressed their interest in joining the bloc.

The grouping is consistently exploring alternatives to Western-dominated financial infrastructure, including initiatives like the New Development Bank (NDB) and discussions around de-dollarisation. With more than 40% of the world's industrial sector, the BRICS nations are crucial to the global supply chain. A key component of global food security, the BRICS nations produce 42% of the world's wheat, 52% of its rice, and 46% of its soybeans.

The G7: Contemporary Relevance and Challenges

The group remains a significant force in global governance, formed in the 1970s in response to economic crises. Its primary aim has been to coordinate economic policies, promote financial stability, and address pressing global challenges.

Crucially, the G7 influences traditional multilateral institutions like the UN Security Council, WTO, IMF, and World Bank, shaping policies through its combined economic and diplomatic power. This "soft power" of norm-setting is a key strength, but also makes it resistant to reforms sought by BRICS. G7 countries are at the forefront of global research and development, investing heavily in cutting-edge technologies like AI, robotics, and green energy, which drive global innovation and economic growth.

Challenges

The rapid growth of emerging economies, particularly within BRICS, means the G7's share of global GDP (especially in PPP terms) is shrinking, diminishing its relative economic power. The G7 faces criticism for its limited membership, as it represents countries from the European continent in major roles while countries from the African and the South American continents have remained unrepresented, which are increasingly important emerging countries. This raises questions about its legitimacy and ability to represent the diverse interests of the global community. Trump criticised Russia’s ousting and blamed it for the war in Ukraine, which shows the split in the G7 ideology.  

Differences between members on issues like trade policies, economic strategies, and responses to international conflicts can hinder effective coordination and present a less unified front. The rise of more inclusive forums like the G20, which includes major emerging economies, poses a challenge to the G7's exclusive role in global economic governance.

Recent setbacks

There are internal disagreements, particularly over America’s tariff policies, that are straining relations within the G7. Countries such as Japan, Canada, and the EU have been affected by U.S. tariffs on goods like aluminium, steel, and cars. Analysts have warned that this may contribute to a slowdown in economic growth. Additionally, the concern of G7 nations regarding the blockade of the important chokepoint, i.e., Strait of Hormuz, through which one-third of the world's seaborne oil passes and would directly impact the G7 economies.

Outcomes of G7 Summit 2025

The G7 Leaders Summit 2025 was held in Kananaskis, Alberta, Canada, from June 15 to 17, chaired by Prime Minister Mark Carney. The Theme "fostering partnerships of the future" reflects the G7's implicit recognition of the need to adapt to a multipolar world and engage more effectively with non-Western powers, signalling a shift from sole leadership to collaboration.

The Summit yielded several outcomes, such as a UK-US trade framework. The summit was held against the backdrop of several conflicts like the Russia-Ukraine war, the Iran-Israel war and bombings in Gaza, escalating competition with China and the USA’s trade policies raise a concern. Economic issues included energy transition and climate action, with new pledges for renewables and a Clean Energy Infrastructure Fund. However, the $100 billion climate finance pledge for developing countries remains unmet. AI and digital ethics were prominent, leading to a Tech Ethics Council, with India showcasing its Digital Public Infrastructure model.

On the sidelines of the G7 Summit, Indian Prime Minister Narendra Modi held a bilateral meeting with Canadian Prime Minister Mark Carney. This marked a significant diplomatic breakthrough, as both leaders agreed to resume the exchange of High Commissioners and restore full diplomatic ties. The development comes in the wake of strained relations following the Nijjar controversy and concerns related to Khalistani extremism.

India's Balancing Position

India, a founding member of BRICS and a frequent invitee to G7 summits, finds itself in a unique and strategically crucial position. Possessing a rapidly growing economy, a burgeoning population, and a strong commitment to strategic autonomy, India is meticulously balancing its relationships with both blocs. India is actively engaged with Western-led institutions like the G7, QUAD, and WTO, which allows India to maintain strategic autonomy in decision-making. India is managing the contemporary conflicts skillfully, such as deep ties with Russia, the USA, Israel, Iran, etc. India is maintaining the policy of Non-alignment 2.0 by engaging with various groupings to serve its strategic goals, often termed as multi-alignment. With a second Trump administration, India seems to be managing the geopolitical disruptions and maintaining the strategic aspirations between India and the U.S.A. By engaging with various international forums and alliances, India not only strengthens its position but also contributes to global peace and stability.

Conclusion

The increasing power of BRICS+ is a significant change in the manner in which the world is governed. As more nations of the Global South unite to get heard, the power tilt is shifting away from the traditional Western-centric system. Though the G7 remains dominant, particularly in technology and finance, it's gradually coming to realise the necessity of coexisting in a diverse, evolving world.

Meanwhile, BRICS+ is providing the developing nations a new way—a way that's more centred on justice, progress, and respect for national preferences. India, with cooperation from both sides, demonstrates that nations can remain independent but still gain advantage from all alliances. This moment is less about competition and more about reshaping the rules together. A more equitable international order is no longer a vision; it's already being built.