What Is BRICS? Meaning, History, Members, and Why It Matters in 2026

You have probably seen headlines about BRICS summits, BRICS expansion, BRICS Pay, or countries wanting to join BRICS or even analysts frequently referring to BRICS. But what exactly is BRICS? Why are so many countries interested in becoming members? And why do economists, policymakers and investors pay close attention to this group? Here's a simple explanation.

What Is BRICS?

BRICS is a group of major emerging economies that cooperate and collaborate on trade, investment, development and global economic issues. The name BRICS comes from the initials of its original members, Brazil Russia India China South Africa

The group was created to give large developing economies a stronger voice in global affairs. Many BRICS countries believe that institutions such as the IMF and World Bank are heavily influenced by developed Western nations and should be reformed to better reflect today's economic realities.

Over the years, BRICS has grown from a small grouping of five countries into a much larger international bloc.

Why Is It Called BRICS?

Interestingly, BRICS did not begin as a political organisation. The term was first coined in 2001 by economist Jim O'Neill while working at Goldman Sachs. He used the term ‘BRIC’ to describe four rapidly growing economies: Brazil, Russia, India, and China. He believed these countries would become major drivers of global growth in the coming decades.

Back then, South Africa was not part of the group. When South Africa joined in 2010, the acronym changed from BRIC to BRICS.

What started as an economic concept has now evolved into a formal platform for cooperation among member countries. What started as an investment concept soon became a political idea.

In 2006, the foreign ministers of Brazil, Russia, India and China met informally during the UN General Assembly in New York. The discussions continued, which led to deeper cooperation. The first official BRICS Summit was held in Yekaterinburg, Russia, in June 2009.

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How Did BRICS Begin?

What started as an investment concept soon became a political idea. In 2006, the foreign ministers of Brazil, Russia, India and China met informally during the UN General Assembly in New York. The discussions continued, which led to deeper cooperation. The first official BRICS Summit was held in Yekaterinburg, Russia, in June 2009.

The timing was important. The world had just experienced the 2008 Global Financial Crisis. Confidence in Western financial institutions had weakened, and many emerging economies wanted greater influence over global economic decision-making.

Since then, BRICS has expanded its agenda beyond economics to include development finance, trade, technology, energy, and international governance.

Who Are the BRICS Members in 2026?

BRICS has expanded significantly in recent years. The original members were:

• Brazil
• Russia
• India
• China
• South Africa

New members added during the recent expansion include:

• Egypt
• Ethiopia
• Iran
• United Arab Emirates
• Indonesia

As a result, BRICS today has moved from a five-country grouping to a broader bloc spanning Asia, Africa, South America, and the Middle East.

The bloc has also created a partner-country framework that allows several other nations to participate in selected activities without becoming full members.

Why Is BRICS Important?

BRICS matters because of its economic size. According to International Monetary Fund (IMF) 2025 data and various international economic reports, the expanded BRICS bloc has a significant presence in the global economy

BRICS by the Numbers

According to International Monetary Fund (IMF) data and various international economic reports, the expanded BRICS bloc has a significant presence in the global economy,

• Around 45% of the world's population lives in BRICS countries, which is roughly 3.8 to 4 billion people.
• About 36% of the world's land area is covered by BRICS member nations.
• Approximately 41% of global GDP (measured by Purchasing Power Parity or PPP) comes from BRICS economies, according to IMF estimates.
• The bloc's share of global GDP (PPP) is now larger than the G7's roughly 28% share.
• BRICS countries are major producers of oil, natural gas, agricultural commodities, minerals and manufactured goods. This gives the group considerable influence over global trade and supply chains.
• BRICS also serves as a forum where member countries can discuss common challenges and coordinate positions on global issues.

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What Is the New Development Bank?

One of BRICS's most significant achievements is the creation of the New Development Bank (NDB). Established in 2014, the NDB finances infrastructure and sustainable development projects in member countries and other emerging economies.

The bank was created to provide an additional source of development funding alongside existing institutions such as the World Bank and the IMF. Projects funded by the NDB include transportation networks, renewable energy initiatives, urban infrastructure and water-management systems. For India, the NDB has become an important source of financing for various infrastructure projects.

What Is BRICS Pay?

Another initiative attracting attention is BRICS Pay. The idea is to create a payment system that makes international transactions easier among member countries. It does not intend to replace existing payment systems overnight. Instead, it aims to simplify trade and financial transactions between participating nations. As trade among BRICS countries continues to grow, payment infrastructure is seen as a vital enabler of this cooperation.

What Does BRICS Have to Do With the US Dollar?

One of the most discussed BRICS topics is ‘de-dollarisation’. Member countries are continuously making efforts to reduce their dependence on the US dollar for international trade and financial transactions. They want to settle trade in their own currencies rather than the US dollar. However, it is important to understand that BRICS is not trying to eliminate the dollar from the global financial system. The focus of BRICS is largely on expanding options rather than replacing the existing system.

Why Should Indians Care About BRICS?

For India, BRICS is more than just a diplomatic forum. India is one of the founding members and plays an important role in shaping the group's agenda. BRICS discussions often involve topics such as,

• Trade and exports
• Infrastructure financing
• Energy security
• Technology cooperation
• Global economic reforms

These issues can influence India's long-term economic growth. For investors, BRICS-related developments can affect sectors such as infrastructure, banking, energy, logistics and digital payments. For businesses, stronger economic ties between member countries may create new trade and investment opportunities.

Does BRICS Challenge the G7?

BRICS and the G7 are often compared, but they are very different groups. The G7 consists mainly of advanced developed economies such as the United States, Germany, Japan, France, the United Kingdom, Italy, and Canada. BRICS, on the other hand, represents major emerging economies. Rather than being direct rivals, the two groups reflect different perspectives within the global economy. Many analysts view BRICS as a platform through which developing nations can seek greater influence in international institutions and decision-making

Frequently Asked Questions

What does BRICS stand for?

BRICS stands for Brazil, Russia, India, China, and South Africa.

Who created the term BRICS?

The term was coined by economist Jim O'Neill in 2001 while working at Goldman Sachs.

Is BRICS a political alliance?

No. BRICS is primarily an economic and cooperation platform rather than a military or political alliance.

What is the main goal of BRICS?

The group aims to promote cooperation among emerging economies and support a more balanced global economic system.

What is the New Development Bank?

The New Development Bank is a multilateral development bank established by BRICS countries to finance infrastructure and sustainable development projects.

Why is BRICS important for India?

BRICS gives India a platform to engage with other major emerging economies and discuss trade, investment, infrastructure, and global economic reforms.