Xi takes centre stage at Modi’s Brics summit as Iran war deepens

[NEW DELHI] Indian Prime Minister Narendra Modi is set to kick off a Brics summit in New Delhi that faces the difficult task of forging common ground, as the escalating war in the Middle East threatens fresh divisions.

Chinese leader Xi Jinping landed in the Indian capital on Saturday (Sep 12), joining his fellow Brics leaders including Russia’s Vladimir Putin and Iran’s Masoud Pezeshkian, hours after Saudi Arabia closed a key alternative pipeline to the Strait of Hormuz following multiple attacks from Iran-backed militants.

The visit is Xi’s first to India since 2019 and comes as the two countries seek a reset in ties following years of strain. 

Iran, Saudi Arabia and the United Arab Emirates are also represented at the two-day Brics summit that kicks off on Saturday, alongside host India and other powers, underscoring the breadth of economic and strategic interests Modi must reconcile to secure an agreement.

The expanded bloc brings together countries with vastly different economic and strategic interests. On Friday, Iranian President Masoud Pezeshkian gave a defiant speech in New Delhi, saying the people of his country won’t surrender. 

Oil surged above US$107 a barrel after the Iran-backed Houthis struck Saudi Arabia’s oil infrastructure, spurring losses in Asian equities and bonds. 

Still, prospects for a joint declaration have improved. While negotiators initially struggled, differences over its language have narrowed in recent days, Bloomberg News has reported. 

Securing an agreement would mark a significant show of unity as the war sends fresh shocks through the global economy.

Oil above US$100 a barrel would add to inflation and import costs for major buyers India and Indonesia, while Brics producers including Russia and the UAE could benefit from higher export revenues. 

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Beyond the immediate challenge of the war, Modi is seeking to use the summit to advance a broader agenda for the so-called Global South, including greater trade in local currencies, closer cross-border payment links and reforms to institutions such as the International Monetary Fund and World Bank to give developing economies a greater voice.

The gathering is offering him a chance to shore up his image as a leader among Global South nations, as well as project India’s ability to maintain ties spanning different ideological camps – a strategic autonomy whose value has grown as relations with the US, New Delhi’s long-time partner, have frayed amid US President Donald Trump’s trade war. 

Saturday’s agenda includes a closed-door session on global governance and multilateralism and a series of bilateral meetings, including with China’s Xi. Leaders will also pose for a group photograph and plant trees. 

The day will conclude with a gala dinner hosted by Modi featuring a “Brics Symphony” with about 160 artistes, largely Indian dancers and musicians alongside performers from other Brics countries, according to the Press Trust of India.

Despite the broader show of unity, divisions remain within the group. India and China stay far apart on their longstanding border dispute, while India has resisted efforts by other nations to recast the informal grouping into an anti-US bloc. 

In the run-up to the summit on Friday, Modi sat down with Pezeshkian and reiterated New Delhi’s call for disputes to be resolved through dialogue, stressing the need to preserve regional peace, freedom of navigation and commerce, and the safety of seafarers. Modi also met Putin on Friday.

“The weekend will show India using diplomacy to restore the Indian government’s domestic image, elevate its international diplomatic standing and engage Russia and Iran without offending the US,” KC Singh, a former senior Indian diplomat, wrote in The Tribune newspaper. 

Singh cautioned against expecting too much from the summit.

“A few plurilateral summits may at best frame solutions but implementation requires visionary leadership.” BLOOMBERG