Xi Returns to India for a BRICS Summit Tested by the Iran War

Chinese President Xi Jinping will make his first trip to India in seven years for the BRICS summit¹. China’s foreign ministry said he will attend the 18th BRICS Summit in New Delhi on September 12 and 13¹⁰, arriving on September 12⁹. Global Times reported the visit as Xi’s first to India in seven years, and carried his argument that India-China cooperation matters not only for bilateral relations but for the Global South and the world as a whole².

India’s External Affairs Ministry confirmed that President Vladimir Putin, Xi Jinping and Egyptian President Abdel Fattah El-Sisi are among those attending³. Iranian President Masoud Pezeshkian and South Africa’s president are also on the guest list⁶. Prime Minister Narendra Modi said preparations were all set, with Putin due to arrive within hours⁶. Delhi has gone into a security lockdown, with heavy cover at the Maurya and Taj hotels¹³.

Why it matters to investors

The bloc’s cohesion is the story. Coverage carried by KFGO framed the summit as a test of unity amid the Iran war, with China alongside host India at the centre of the effort, and noted that Saudi Arabia’s role in the grouping remains ambiguous⁴. DW reported that India is looking to steer BRICS away from an anti-Western turn, and that unlike last year both Putin and Xi are expected to attend⁵.

There is friction inside the bloc as well. Xi will not hold a bilateral meeting with Putin at the summit, following an unresolved gas dispute between Moscow and Beijing⁷. India’s own agenda with Russia is resource-led: the Modi and Putin talks are set to cover critical minerals and rare earths⁸.

What to watch

Payments are on the agenda. Discussion of a BRICS Pay system modelled on India’s UPI is drawing attention as a possible alternative to the US dollar’s dominance, with the 18th summit commencing on Saturday¹¹. The counterargument came from Martin Wolf, who said BRICS can trade more in local currencies but the dollar is not going away, and that the dollar’s dominance in international exchange and finance is unlikely to change quickly¹².

Beijing is placing weight on the trip. The South China Morning Post reported that Xi’s visit comes as Beijing puts greater emphasis on ties it says serve both countries and the Global South¹. For investors the readout to watch is narrow: whether the summit produces anything concrete on settlement and local-currency trade¹¹, and whether the Moscow and Beijing gas dispute stays unresolved⁷.