The BRICS summit in India concluded with a joint communiqué that outlined efforts to strengthen cooperation across the expanded membership. BRICS now represents a larger share of global output than the G7 on a PPP basis, while accounting for close to half of the world's population, underscoring its growing economic weight.
Key takeaways from the discussions, include, firstly expressing strong opposition to tariffs, trade fragmentation, and sanctions, which were viewed as being inconsistent with WTO principles. This was also taken as an opportunity to push for deeper integration amongst Global South countries, besides pursuing supply chain diversification and open trade.
Second, on climate and energy, the declaration adopted a pragmatic approach. Amid heightened West Asia tensions, there was a recognition that fossil fuels will continue to play an important role for emerging economies in the immediate term, but without losing sight of the need to support investment in renewables, hydrogen, storage technologies, and critical mineral value chains over the coming years.
Next, as anticipated, rather than focusing on a common currency, the group highlighted potential initiatives, which included payment interoperability led by the BRICS Payment Task Force, local-currency trade settlement, a potential BRICS grain exchange, startup and innovation funding mechanisms, infrastructure financing, and an expanded role for the New Development Bank.
Lastly, the group called on multilateral agencies like IMF, World Bank and WTO to increase weightage of emerging markets and in effect, raise the representation of the Global South. At the same time, in there was also near-term steps towards cooperation over financial infra to reduce long-term dependence on traditional Western financial channels.
Overall, the direction of travel for the BRICS group will be towards incremental progress towards alternative financial channels, rather than an overhaul of the existing architecture. Part of this messaging will need to be followed up by material changes in cross-border payment mechanisms, setting up local currency targets and use case of NDB increasing local currency loans, which will help reinforce the shift in direction and gradually lower reliance on the major currencies.
As we highlighted here, the summit did not carry market-moving announcements, though emphasised on a great role for cross border payment mechanisms, push to translate economic weight to higher representation over global institutions and balance near term energy needs with medium term shift towards clean energy goals. BRICS must also balance competing strategic interests and divergent economic priorities among its members with the need for cooperation and integration. Arriving at a common ground will eventually dictate the depth and speed of achievements. 
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