INDIA'S DIPLOMATIC TIGHTROPE: MEDIATING THE WEST ASIA CRISIS IN AN EXPANDED BRICS

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Picture Courtesy:  THE HINDU

Context

As the 2026 BRICS Chair, India is facilitating discussions through the Sherpa channel to forge a common position on the West Asia crisis.

What is BRICS?

BRICS is an informal intergovernmental organization of major emerging economies that serves as a platform for the Global South to coordinate on global political and economic issues. 

Originally formed to challenge Western dominance in institutions like the IMF and World Bank, the bloc has recently expanded to include several new powerhouse nations. 

Membership

As of early 2026, the group consists of 11 full members and a newly established "partner country" category. 

• Original Members: Brazil, Russia, India, China (joined 2006) and South Africa (joined 2011).
• New Members (Joined 2024): Egypt, Ethiopia, Iran, and the United Arab Emirates (UAE).
• Addition (2025): Indonesia became the first Southeast Asian state to join as a full member in January 2025.
• Pending: Saudi Arabia has accepted an invitation but has delayed formalizing its membership as of early 2026.
• Partner Countries: In 2024, a "partner" category was created for countries like Vietnam, Malaysia, Thailand, Nigeria, and Turkey to participate in summits without full voting rights. 

Economic and Global Power

The expanded bloc, often informally called BRICS+, represents a shift in global power dynamics: 

• Population: Nearly 50% of the world's population.
• Economy: Approximately 37% of global GDP (PPP), surpassing the G7's share.
• Resources: Controls about 44% of global crude oil production and a significant portion of agricultural land. 

Key Institutions and Initiatives

To reduce reliance on Western systems, BRICS has established its own financial and technical frameworks: 

• New Development Bank (NDB): Headquartered in Shanghai, it funds infrastructure projects in emerging markets.
• Contingent Reserve Arrangement (CRA): A $100 billion framework to provide liquidity to members during currency crises.
• De-dollarization: The group actively promotes trade in local currencies (like the Yuan and Rupee) to lessen dependence on the U.S. dollar.
• BRICS Pay: Ongoing development of a digital payment platform as an alternative to the SWIFT system. 

Current Presidency

The presidency rotates annually among full members.

2026 Presidency: India is scheduled to take over the chairship in 2026 under the theme "Building for Resilience, Innovation, Cooperation and Sustainability". 

What are the challenges for India as BRICS Chair? 

Direct Conflict Between Members

Military Confrontation: In late February and early March 2026, Iran launched drone and missile strikes against infrastructure in the UAE and Saudi Arabia.

Targeting: Iranian officials stated the strikes targeted US military bases and assets within these Gulf nations, though reports also indicated damage to civilian areas, such as Zayed International Airport and oil-related infrastructure.

Paralysed Consensus: This conflict between new BRICS members has paralyzed the group's consensus-based decision-making. 

• The Ministry of External Affairs (MEA) noted that bridging the gap between members "directly involved" in the conflict has made forging a common position extremely difficult. 

Rejecting an "Anti-Western" Pivot

India’s Position: As the 2026 BRICS Chair, India has resisted pressure from Iran to lead a collective condemnation of US-Israeli strikes on Iranian territory.

Strategic Vision: New Delhi maintains that BRICS should remain a "non-Western" economic forum focused on development, rather than an "anti-Western" security alliance.

Diplomatic Balance: While Russia, China, and Brazil have individually condemned the US-Israeli strikes, India has focused on engaging all stakeholders through the Sherpa channel to maintain a neutral, facilitator role. 

Divergence at the UNSC

UNSC Resolution 2817: In March 2026, the UN Security Council adopted Resolution 2817, which condemned Iran’s "egregious" attacks on Gulf Cooperation Council (GCC) countries and Jordan.

India's Support: India co-sponsored and voted in favour of the resolution, signaling strong support for the sovereignty of its Gulf partners.

Russia and China’s Stance: BRICS permanent members Russia and China abstained. They argued the resolution was "one-sided" and failed to address the preceding US-Israeli strikes on Iran.

Failed Counter-Resolution: A rival resolution proposed by Russia, which called for a general ceasefire without naming specific parties, was rejected by the Council. 

How does West Asia Conflict Threaten India's Core National Interests?

The conflict in West Asia directly threatens India’s energy security, the safety of diaspora, and strategic connectivity projects, posing risk to macroeconomic stability.

Energy Security & The Hormuz Chokepoint

Extreme Vulnerability: India imports 85-90% of its crude oil and over 60% of its LPG, with most supplies transiting the Strait of Hormuz. 

• Iran's blockade of this chokepoint triggered severe domestic fuel shortages.

Macroeconomic Risks: A sustained oil price shock threatens India's key economic indicators. 

• It could widen the Gross Fiscal Deficit (GFD) due to higher import bills and subsidy burdens, and fuel imported inflation, potentially forcing the Monetary Policy Committee (MPC) to raise interest rates and stifle GDP growth.

Pragmatic Response: India rejected US calls to join a multinational military coalition. 

• India deployed the Indian Navy under Operation Sankalp to secure its own tankers and negotiated a "humanitarian window" with Iran to secure critical LPG supplies.

Diaspora Security & Economic Remittances

High Stakes: Over 10 million Indians reside in the Gulf region, contributing over $50 billion annually in remittances; vital for India's foreign exchange reserves (Source: World Bank).

Crisis Response: The Ministry of External Affairs (MEA) activated 24/7 control rooms and executed emergency evacuations to protect vulnerable Indian citizens caught in the conflict zone .

The Connectivity Dilemma: IMEC vs INSTC

IMEC Stalled: The India-Middle East-Europe Economic Corridor (IMEC), launched at the G20 summit in 2023 as an alternative to China’s BRI, has been derailed. 

• The war makes the corridor geographically impassable due to attacks on Israeli ports and a freeze in Arab-Israeli normalization.

Risky Pivot to INSTC: India is now more reliant on the International North-South Transport Corridor (INSTC) via Iran's Chabahar port. 

• However, this route faces risks from US sanctions and China's growing influence in Iran through its $400 billion strategic partnership.

Indian Diplomacy To Navigate West Asia Crisis 

India manages the contradictions through a policy of "strategic autonomy" => Participating in multiple, overlapping global networks to maximize national interest without ceding sovereign decision-making power to any single bloc.

Way Forward For India

Enhance Domestic Resilience

Implement the recommendations of the Kelkar Committee on Energy Security, which includes expanding Strategic Petroleum Reserves (SPR) beyond the current 5.33 MMT and accelerating energy diversification through initiatives like the Global Biofuels Alliance.

Institutionalize Proactive Diplomacy

Leverage the BRICS chairmanship to establish a formalized "BRICS Conflict Mediation Framework." This would transform India’s policy from passive neutrality to active peacemaking.

Conclusion

India’s management of the 2026 West Asia crisis demonstrates that "Networked Strategic Autonomy" is no longer just a defensive posture, but a proactive strategy where India leverages domestic resilience and multilateral leadership (via BRICS) to act as an indispensable, rule-setting pole in a multipolar world.

Source: THE HINDU