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Former Indian Ambassador to the United States Meera Shankar shared her analysis of the BRICS Summit, India-China relations, and global geopolitical dynamics during an interview. Highlighting India's approach toward multilateral forums, Shankar stated, "we want BRICS to be a non-Western group rather than an anti-Western group." She explained that India must maintain a strategic balance to provide developing nations a stronger voice in global governance without enabling Chinese dominance. Shankar highlighted that BRICS members prefer local currency trade settlements rather than replacing the US dollar with the yuan. Addressing ties with Washington and Moscow, she noted that preserving strategic autonomy and securing energy needs remain essential for India. Ahead of bilateral talks between Prime Minister Narendra Modi and Chinese President Xi Jinping, Shankar pointed out that bilateral relations will stabilize significantly only if both sides achieve substantive progress on unresolved border disputes and address critical trade imbalances.

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00:00I also want to bring into this conversation Ambassador Meera Shankar, India's former ambassador to the United States of America.
00:07Ambassador Shankar, welcome.
00:10Your take on this iconic backdrop and what the Prime Minister said, the Ramanathiswami temple,
00:17the civilizational ties, as Pranay was also indicating, between India and China, and of course the Prime Minister's message.
00:26Well, certainly it emphasizes the civilizational links between India and China over the centuries,
00:37but it also looks to the future, to new maritime trade routes, let's say, between Vali Vostok and Chennai.
00:47So it's not just something which is reiterating age-old civilizational ties,
00:54but looking at how we can modernize them using our ancient civilizational understandings
01:05and coupling that with economic trade and investment.
01:12Yes. And the Prime Minister ambassador also referred to, you know, initially when he said BRICS,
01:20an idea that started 20 years ago, now it's celebrating its 20th anniversary.
01:26It's like, you know, someone has now matured. There are responsibilities.
01:31Now you need to take it forward.
01:33Do you see a roadmap that the Prime Minister is now talking about how BRICS can now start delivering on
01:41ideas
01:41that it's deliberated upon for 20 years?
01:44Well, BRICS is now, you know, a much larger group.
01:51It has endured for 20 years, despite geopolitical differences between many of the members.
01:59And it operates in the space of geopolitics and security, not so much,
02:08but more in the area of trade, investment, finance, sustainability, and people-to-people ties.
02:28For instance, we want BRICS to be a non-Western group rather than an anti-Western group.
02:38We wanted to create additional space for developing countries to pursue their own policies
02:49without the pressure which may come from one bloc or the other.
02:55And at the same time, we want to reform the existing systems of international governance.
03:04So this is something where BRICS now plays a larger role because they account for nearly 50% of the
03:13world's population,
03:15over 40% of world GDP, and over 25% of global trade.
03:22So the bloc certainly carries more weight.
03:27And as somebody says, their combined GDP probably now is higher than that of the G7.
03:35In fact, the Russian president remarked about it, that the combined GDP of G7 countries is 18%
03:41and BRICS is now 40% and rising.
03:44But tell me this, Ambassador, how would the Western bloc be looking at this BRICS summit in New Delhi?
03:52Would they look at it as an alliance of sorts of anti-West countries?
03:57Or would they look at it as a non-West alliance?
04:00Would they look at it with suspicion?
04:02I think there is a mix of both.
04:06You know, because it hasn't really been that effective.
04:10And now, in the past, and now you have countries like Egypt, UAE, Iran,
04:17Iran, which don't necessarily see eye to eye.
04:22You have countries like India, which has good links with the West.
04:28You have countries like China and Russia, which may want a slightly more overt posture against the West.
04:38So you have different interests.
04:40And I think India's skill will lie in balancing these interests and ensuring that BRICS moves forward in a practical
04:49way,
04:49which serves the interests of all the countries.
04:54Secondly, I think for India, it's a balancing act also because while you want to create space for developing countries,
05:05get them more voice in international institutions, including international financial institutions of governance,
05:15at the same time, India has to be cautious that it does not become a vehicle for expanding or accelerating
05:25Chinese dominance.
05:26So I think this balancing act is something which we have to do.
05:32And I'm sure that we'll see that in terms of the outcome.
05:38This BRICS summit is looking at, you know, trade, creating networks of trade, investment and finance.
05:49Specifically, there have been proposals for, you know, settlement of trade accounts and local currencies.
05:58Secondly, there is this proposal to, you know, expand the sphere of lending of the new development bank,
06:09which was set up, which has a hundred billion dollars contributed by all the countries.
06:15And there are proposals to set up, you know, some new infrastructure, financial institution,
06:24or one which could also look at climate change.
06:27But at the end of the day, we'll have to see what concrete decisions emerge from the summit, because everybody...
06:36Ma'am, for a moment, I want to focus on these images that are coming in.
06:40The prime minister and the Chinese president, Xi Jinping, spent some time at this iconic backdrop of the pillars at
06:49the Sri Ramanathya Swami temple at Rameshwaram.
06:54You know, is that perhaps an effort to tell the Chinese about the historic ties?
06:59Because there is conversation around this a little longer than with the others.
07:05Well, it's certainly, you recall, Xi Jinping's visit to India.
07:11It began in Mahabalipuram with the backdrop of the ancient architecture.
07:18So, it's signaling that India, too, is an ancient civilization with its own history and culture, which is very rich.
07:27But as I said, it's also looking at future links through the oceans.
07:37Yes, you know, you referred specifically to the Chennai-Bladivostok link.
07:41We've been talking about India seeking to invest or tie up more with Russia on the Arctic, you know, seafaring
07:49route in times to come.
07:51Shipbuilding is one area where India is really trying to focus on very extensively.
07:56Now, when you look at the BRICS architecture, is that an apprehension only in India or among other members that
08:04you cannot, while everyone's saying you cannot let America dominate the world order,
08:10at the same time, nobody would want China to dominate or to be the replacement power either.
08:16So, are there effective countermeasures being put in place to ensure America is not replaced by China and same pressures
08:23work on the world?
08:24You know, like, let's say, if you look at the trade settlement issue, see, BRICS countries at the moment prefer
08:35trade in local currencies,
08:36settlement in local currencies, rather than looking at a common currency, because the strongest currency would be the yuan.
08:46And actually domination by one currency, you know, replacing the dollar with the yuan may not be something that, you
08:56know, many countries are comfortable with.
08:59Certainly India is not, because we want this to be a more, you know, leveled structure where you don't have
09:09a pinnacle of authority and then, you know, the rest.
09:14So, I think it's important, as I said, for India to do this delicate balancing act.
09:22And we're the only ones who can actually do it at this point of time.
09:26But, of course, India, Russia, China, they're being seen as an alternate power structure.
09:34How would you respond to the criticism that India coming too close to Russia and China would, you know, alienate
09:42us?
09:42Or as some analysts seem to argue, America will not be too happy about it.
09:47Well, you know, I think for India, it's important to preserve its strategic autonomy.
09:53And the U.S. has been exerting unpredictable and sometimes irrational pressure on India.
10:02So, I think for India, it's important to preserve space for its own national goals, whether it is energy security,
10:15which at the moment, you know, because of the conflict in the Gulf, has been badly impacted.
10:22So, we have to import quite a lot from Russia.
10:26And the Russians have, in fact, shown a willingness to expand exports to India.
10:33So, it's coming at a very critical time for India.
10:38Ambassador, if I may, for a moment, while everyone's also talking about BRICS and BRICS outcomes,
10:43there's a lot of conversation around the story of the day, as some put it, is, you know,
10:49the conversation between Prime Minister Narendra Modi and the Chinese President Xi Jinping
10:54in about two hours and 30 minutes from now, a reset of sorts, the fact that he's flown in for
11:00the BRICS summit,
11:01is it only because he expects India also to come and join BRICS summit in China?
11:06Or do you see a genuine effort to reset ties?
11:12I think both countries have been making an effort to reset ties, despite the constraints,
11:20because we don't know if the Chinese position on the border has shifted.
11:25In fact, recently, there was some account of border skirmishes in Arunachal.
11:31Taxing Arunachal.
11:33So, the border remains unresolved.
11:38On the trade side, China has a huge surplus with India.
11:44And India's dependency on Chinese inputs in many critical sectors has grown,
11:51whereas Chinese imports from India are very, very low.
11:56So, I think these, then I think China has put a block on sharing technology with India in critical sectors,
12:05including most recently battery technology for electric vehicles.
12:10So, I think that these are all issues which should be on the table when the two leaders meet.
12:19But the countries are trying to progress the relationship step by step.
12:26But Adi's multiple false starts, you know, I don't even want to go back to the Hindi-Chini bhai-bhai
12:33era in 62.
12:34If we were to talk about only the Narendra Modi government in the past 12 years,
12:382014, Prime Minister Narendra Modi invited Chinese President Xi Jinping to India to Ahmedabad.
12:43There was tension at the borders.
12:45Then, the 73-day Dolom standoff.
12:48Then, the Wuhan summit, the informal dialogue.
12:52Then, again, tensions at the borders.
12:54Then, Mamalapuram 2019, Galwan 2020.
12:57And that tension remained high till Kazan 2024.
13:01And then Tianjin and now here.
13:04So, multiple times we see the relationship go up, come down, go up, come down.
13:07Will this time be any different?
13:11Well, I think the relationship will stabilize much more if both sides are able to really, you know, have substantive
13:24movement on the border.
13:26Because as the border, till the border remains undefined, with conflicting claims from both sides, the possibility of border tensions
13:37remains.
13:38So, there is a kind of expectation that there may be some direction by the leaders to continue the process
13:54or accelerate it.
13:55Let's see, because the process of, you know, trying to restore some stability on the border after the Galwan tensions
14:08started when President Xi Jinping and Prime Minister Modi had met.
14:16At Kazan.
14:17Yes.
14:19And post-Kazan, then Tianjin and now New Delhi.
14:22The fact that he's come to New Delhi.
14:24This conversation.
14:25And we'll be keeping an eye on what happens at 5.30.
14:28And subsequently, the delegation that he's got along with him.
14:31Ambassador, stay with me.
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