Roadmap for Answer Writing 1. Introduction Briefly introduce the Indo-Pacific Economic Framework for Prosperity (IPEF). Mention its launch by the United States and its aim to enhance economic cooperation in the Indo-Pacific region. Highlight the four key pillars: Trade, Supply Chains, Clean Economy, and ...
Model Answer Introduction The expansion of BRICS with the inclusion of new members such as Egypt, Iran, Saudi Arabia, the UAE, and Ethiopia at the 15th BRICS Summit marks a significant phase in the group's evolution. This expansion is an attempt to enhance BRICS' global influence, but it also bringsRead more
Model Answer
Introduction
The expansion of BRICS with the inclusion of new members such as Egypt, Iran, Saudi Arabia, the UAE, and Ethiopia at the 15th BRICS Summit marks a significant phase in the group’s evolution. This expansion is an attempt to enhance BRICS’ global influence, but it also brings challenges related to differing national interests and governance systems.
Strengths of BRICS in the Present Scenario
1. Demographic and Economic Weight
BRICS now accounts for almost 46% of the global population, offering immense demographic leverage. Economically, its share of world GDP at purchasing power parity (PPP) has increased from 31.6% to over 35.6%, strengthening its global economic clout.
2. Strengthened Global Governance
With BRICS countries holding three consecutive G20 presidencies (India in 2023, Brazil in 2024, and South Africa in 2025), the bloc can push its agenda more effectively in global governance.
3. Voice of the Global South
The expansion is seen as a step towards promoting solidarity and strategic partnerships in the Global South, advancing multilateralism and inclusive global governance.
4. Reducing Dependence on the US Dollar
BRICS aims to reduce its reliance on the US dollar by encouraging the use of local currencies in international trade and financial transactions.
Weaknesses of BRICS in the Present Scenario
1. Heterogeneous Group
The group is ideologically and economically diverse. While some members, like Russia and China, have current account surpluses, others like India and South Africa face deficits. Additionally, the political regimes within BRICS vary, with some members being democracies and others authoritarian.
2. Limited Trade Integration
Despite the bloc’s large share in global exports (25%), intra-BRICS trade is limited, accounting for only 3.7% of global trade in 2021.
3. Fragile Geopolitical Unity
Geopolitical tensions, such as the ongoing India-China territorial disputes, create divisions within the bloc, affecting its ability to act cohesively on global issues.
4. Dominance of China
China’s overwhelming economic influence, contributing to over 50% of BRICS’s GDP, risks overshadowing the goals of other members and may lead to prioritizing China’s geopolitical interests.
Conclusion
BRICS represents both a powerful collective force and a complex coalition. While it enhances global influence, the group must navigate internal divisions and differing interests to make a meaningful impact on global governance.
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Model Answer India's participation in the Indo-Pacific Economic Framework for Prosperity (IPEF) brings numerous strategic and economic advantages across various sectors. The IPEF, launched by the United States, aims to promote sustainable growth, peace, and prosperity in the Indo-Pacific region throRead more
Model Answer
India’s participation in the Indo-Pacific Economic Framework for Prosperity (IPEF) brings numerous strategic and economic advantages across various sectors. The IPEF, launched by the United States, aims to promote sustainable growth, peace, and prosperity in the Indo-Pacific region through its four key pillars: trade, supply chains, clean economy, and fair economy. Although India has observer status in the trade pillar, it is actively involved in the other three.
Diversification from China
One of the significant benefits for India is the diversification away from China. The Supply Chain Resilience Agreement aims to reduce dependency on China, mitigating risks of disruptions from supply chain shocks. India, with its growing manufacturing sector, can position itself as an alternative global sourcing hub. In 2022, India’s trade deficit with China exceeded $100 billion, underscoring the need for this shift in trade dynamics .
Manufacturing and Infrastructure Growth
India stands to gain from the potential relocation of production centers in critical sectors. This shift will bolster domestic manufacturing capacities and attract investments, supporting India’s Aatmanirbhar Bharat (Self-Reliant India) initiative. Enhanced infrastructure and industrial growth would create job opportunities and strengthen India’s economic position.
Innovation in Clean Technologies
The Clean Economy Agreement under IPEF presents an opportunity for India to attract inward investments in clean technologies. This could lead to the development of low-cost climate technologies, new export avenues, and additional employment. The IPEF partners have pledged $33 million in initial funding for the Clean Economy Agreement, supporting sustainable growth.
Strengthened Anti-Corruption Measures
India also benefits from the Fair Economy Agreement, which aims to enhance cooperation on anti-corruption measures, tax reforms, and cross-border investigations. This will aid in tackling issues like corruption, money laundering, and terror financing, improving the transparency and security of India’s economic environment.
Enhancing Economic and Security Resilience
Finally, increased cooperation under IPEF helps India collaborate on addressing shared challenges such as natural disasters and cybersecurity threats, enhancing both economic and security resilience in the region.
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