The Geopolitics of BRICS 25thousands of listed companies. Adding to this is the fact that it has a strong
culture of entrepreneurship and investment. On the negative side is the fact
that when investors try to bring capital into the country they are often
overwhelmed with red tape.
As mentioned above, there are clear indications that India’s growth is
slowing down. Also, despite the fact that the percentage of the country’s
population deemed to be in poverty has declined from 42% to 33%
between 2005 and 2010 (a reduction of over 100 million people), the
country still has an estimated third of the world’s poor. Thus, poverty and
hunger remain a serious challenge in the country.^21
Since independence India has had a strong diplomatic tradition of
nonalignment. In the present day, these notions of nonalignment may seem
dated since it was established at a time when India was seeking
equidistance between the USSR and US. However, although nonalignment
allowed India to assert its sovereignty, with specific regard to its
relationship with China and the US, it maintained a high level of strategic
cooperation with the USSR, notably more so after the 1962 Sino-Indian
War and the 1960 Sino-Soviet split.^22
India needs to contain its partner-rival relationship with China. The
country can no longer maintain a strategic relationship with a weak Russia
but has to do so with the USA. This scenario goes against the BRICS
objective of countering Western hegemony. However, India needs to
balance this relationship with the US so as to enhance its economic
development, to counter China and still not become a proxy of the USA.
Historically it has been shown that powers which establish formal
alliances with the US tend to experience the erosion of their strategic
autonomy. As such, it would be more advantageous for both the US and
India if they remain friends rather than allies.^23
India wishes to maximize its options regarding its international
relationships. Thus, for the Indians, nonalignment means that they need
not be dependent on anyone. However, for India, the most important
relationships continue to be with the US and China. As a result, the
significance of BRICS is diminished. It is likely that India is utilizing the
developing BRICS relationship as a means of managing its relationship
with China. Thus, many analysts believe that BRICS is a by-product of a
global strategy to contain China’s rise without becoming part of the US
(^21) Black, “BRICS Spectacular Rise, Not so Spectacular after All.”
(^22) Khilnani et al., “Nonalignment 2.0: A Foreign and Strategic Policy for India in
the Twenty First Century.”
(^23) Khilnani et al., “Nonalignment 2.0: A Foreign and Strategic Policy for India in
the Twenty First Century.”