India’s BRICS Chairmanship: Balancing Moral Leadership with Trade Imperatives

Today India’s Ministry of Commerce announced the fourth round of bilateral trade talks with Canada will be held in Delhi, targeting a deal before Prime Minister Narendra Modi’s scheduled visit. The talks mark a rapid acceleration after six months of negotiations, contrasting with a stalled 12‑year effort and reflect broader strategic ties amid global trade tensions. Officials hope to seal a pact covering sectors that generate over 200,000 jobs and attract $10 billion of Canadian investment.

•India’s assumption of the BRICS chairmanship in 2026 has reignited debates about its role as a voice for the Global South while navigating complex trade imbalances within the bloc.
•As former Prime Minister Manmohan Singh’s legacy of principled diplomacy resurfaces, New Delhi faces pressure to reconcile its strategic autonomy with economic pragmatism, particularly amid criticism over its handling of regional crises and trade disparities.

India’s assumption of the BRICS chairmanship in 2026 has reignited debates about its role as a voice for the Global South while navigating complex trade imbalances within the bloc. As former Prime Minister Manmohan Singh’s legacy of principled diplomacy resurfaces, New Delhi faces pressure to reconcile its strategic autonomy with economic pragmatism, particularly amid criticism over its handling of regional crises and trade disparities.

Historical Foundations of India’s Global South Leadership

India’s claim to leadership in the Global South traces back to its post-Independence foreign policy, marked by solidarity with anti-colonial movements and opposition to apartheid in South Africa. The country’s role in the Korean War and its consistent advocacy for reforming global governance institutions like the World Trade Organization (WTO) underscore its long-standing commitment to multipolarity. However, the Congress party’s recent critique highlights a perceived erosion of this moral authority, citing India’s limited engagement during the West Asia conflict and its tepid response to South Africa’s diplomatic isolation.

▸India opposed apartheid in South Africa in the 1980s, aligning with UN resolutions against racial segregation.
▸Its support for decolonisation in Africa and Southeast Asia shaped early Non-Alignment movement strategies.
▸The Foreign Exchange Management Act 1999 and Bilateral Investment Treaty (BIT) framework reflect India’s evolving economic diplomacy within multilateral forums.

Trade Imbalance and the Push for Market Access

BRICS accounts for 19.6% of global merchandise trade, yet India’s trade relationship with the bloc remains skewed. The Congress has urged the government to leverage the chairmanship to address this imbalance, demanding greater market access for Indian goods and services while tackling non-tariff barriers. Canadian High Commissioner Christopher Cooter noted that India-Canada trade, despite $80 billion in Canadian investments, remains modest, underscoring the urgency of finalizing the Comprehensive Economic Partnership Agreement (CEPA).

▸Canada is India’s ninth-largest trading partner, with bilateral trade valued at $5.6 billion in 2023.
▸Indian exports to BRICS nations totaled $135 billion in 2023, while imports reached $210 billion, widening the trade deficit.
▸The Trade Related Aspects of Intellectual Property Rights (TRIPS) agreement complicates India’s access to affordable medicines, a recurring friction point in WTO disputes.

Did You Know? India’s first post-liberalisation trade agreement was with Singapore in 1991, predating the WTO by over a decade. This early move laid the groundwork for India’s current focus on bilateral FTAs like CEPA.

Diplomatic Tightrope: Iran, Palestine, and Strategic Clarity

The Congress’s criticism of India’s “inadequate support” for South Africa and its silence on Iran’s position in the West Asia conflict reflects deeper concerns about India’s diplomatic coherence. While BRICS condemned the Pahalgam terror attack, it notably avoided addressing the Israel-Iran tensions, prompting calls for a more assertive stance on Palestine. Former Foreign Minister Khurshid emphasized that India must balance “strategic clarity” with its national interests, echoing Manmohan Singh’s approach during the 1998 Pokhran tests.

▸India abstained from UN votes on Gaza in 2024, citing “humanitarian concerns” while avoiding explicit condemnation of Israel.
▸The Maneka Gandhi Judgment (1978) established India’s commitment to due process, a principle mirrored in its multilateral engagement.
▸BRICS’ 2024 summit resolution on “non-interference” aligns with India’s resistance to external pressure on Kashmir and Palestine.

The CEPA Gambit and Investment Diplomacy

India’s renewed push for a CEPA, after 12 years of stalled negotiations, signals a recalibration of its trade strategy. Canadian investors, including pension funds, have long viewed India as a high-growth market, with $80 billion in cumulative investments. The upcoming fourth round of talks in Delhi aims to finalize the agreement by December, coinciding with a potential Modi-Carney summit. This move could set a precedent for faster FTA negotiations with other BRICS members like Russia and Brazil.

▸Canada’s $80 billion investment in India spans sectors like mining, energy, and financial services.
▸The Nuclear Power Corporation of India collaborates with Canadian firms on small modular reactors, part of India’s clean energy transition.
▸India’s 2024 Foreign Trade Policy prioritizes “data localization” rules, complicating CEPA’s digital trade provisions.

The Road Ahead: Leadership Without Hegemony

India’s BRICS chairmanship offers an opportunity to redefine its global role, blending moral leadership with economic assertiveness. However, balancing solidarity with the Global South and addressing domestic trade deficits requires navigating competing pressures. As New Delhi finalizes CEPA and addresses WTO reform stalemates, its success will hinge on translating rhetoric into actionable policies that safeguard both strategic interests and economic growth.