BRICS Indore Declaration and Institutional Framework for Prelims – Prelims Specific

Introduction

The Indore Declaration is a strategic policy roadmap adopted by BRICS member nations to facilitate deeper cooperation in economic and digital governance. It signifies a transition from periodic summit-level rhetoric to institutionalized policy implementation, aiming to address the developmental bottlenecks of the Global South.

Why in News?

• BRICS has formally adopted the Indore Declaration to streamline collaborative efforts across four core priority areas: economic resilience, digital infrastructure, inclusive development, and institutional transparency.
• The declaration serves as a framework to leverage the collective expertise of member nations for cross-border regulatory harmonization.

Static Link

• The topic falls under International Relations, specifically regarding global groupings and multipolarity.
• BRICS (Brazil, Russia, India, China, South Africa, plus new members) serves as a platform for South-South Cooperation.
• UPSC often tests the evolution of such blocs, their impact on the existing Western-led global order (like G7 or IMF), and India’s strategic positioning within them.

Institutional Link

• New Development Bank (NDB): Originally established by the Fortaleza Declaration (2014), it is the primary multilateral financial institution of the BRICS grouping. It supports infrastructure and sustainable development projects in BRICS and other emerging economies.
• Contingent Reserve Arrangement (CRA): A framework launched by BRICS to provide mutual support and liquidity during short-term balance-of-payment pressures.

Core Prelims Facts

• BRICS member nations collectively represent over 40 percent of the global population and a significant share of global GDP.
• The Indore Declaration promotes the development of interoperable digital frameworks and shared sustainability standards.
• Focus areas include reducing dependency on traditional Western-dominated financial gateways through local currency trade.

Important Terms and Concepts

• Multipolarity: A system of global governance where power is distributed among several major centres rather than being concentrated in one.
• South-South Cooperation: A term used to describe the exchange of resources, technology, and knowledge between developing countries.
• Digital Public Infrastructure (DPI): Foundational digital systems (like India’s UPI or Aadhaar) that enable public service delivery and economic integration.

Bodies / Organisations / Institutions

• BRICS: An intergovernmental organization comprising major emerging economies.
• New Development Bank (NDB): A multilateral development bank focused on the Global South, headquartered in Shanghai.
• IMF and World Bank: Bretton Woods institutions often compared against BRICS financial structures in UPSC questions.

Schemes / Laws / Reports / Conventions

• Fortaleza Declaration: Established the New Development Bank.
• BRICS Plus: The expanded framework of the grouping incorporating additional nations to enhance representation.

Possible UPSC Prelims Traps

• NDB Membership Trap: NDB is not exclusive to BRICS nations; it is open to other developing countries.
• Founding Trap: NDB was established under the Fortaleza Declaration, not the Indore Declaration.
• Headquarter Trap: The NDB is headquartered in Shanghai, not in one of the rotating presidency capitals.
• Expansion Trap: Assuming that all BRICS decisions are binding on all members without consensus; BRICS operates on a consensus-based model.
• Function Trap: Confusing the mandate of the CRA (liquidity support) with the mandate of the NDB (long-term development/infrastructure funding).

One-Minute Revision Notes

• Indore Declaration: Focuses on digital infrastructure and economic integration.
• NDB: Established by Fortaleza Declaration; based in Shanghai.
• CRA: Designed to tackle balance-of-payment crises.
• Membership: Includes original members plus newer entrants under BRICS Plus.
• Objective: Promoting South-South cooperation and reforming global governance.

Practice MCQ for Prelims

1. With reference to the New Development Bank (NDB), consider the following statements:

1. It was established under the provisions of the Indore Declaration.

2. Its membership is restricted to the original five BRICS countries only.

3. It aims to fund sustainable development and infrastructure projects.

Which of the statements given above is/are correct?

A) 1 and 2 only

B) 3 only

C) 2 and 3 only

D) 1, 2 and 3

Answer: B

Explanation: Statement 1 is incorrect because the NDB was established under the Fortaleza Declaration. Statement 2 is incorrect because the NDB is open to other emerging economies, not just the original BRICS members. Statement 3 is correct.