Seventeen years into the BRICS project, its founding institutions like the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA) remain deeply tied to the western financial system they claim to challenge. Despite rhetoric regarding de-dollarisation and alternative financial architectures, the NDB largely issues bonds and loans in U.S. dollars and co-finances projects with the World Bank and IMF. Furthermore, the CRA has never been activated and requires an IMF program for large withdrawals. Consequently, BRICS functions more as a platform for a greater seat at the existing global table rather than a radical systemic alternative.
- The New Development Bank (NDB) relies heavily on U.S. dollars and co-financing with traditional western institutions rather than providing a true alternative.
- The Contingent Reserve Arrangement (CRA) has never been activated in its decade of existence and mandates prior IMF program entry for significant currency withdrawals.
- Declarations from BRICS summits increasingly avoid hard de-dollarisation stances due to member fears of western trade reprisals.
Chinese President Xi Jinping is set to visit India for the BRICS Summit in New Delhi, marking his first visit to the country in seven years. The visit comes amid renewed efforts to stabilize ties, following the 2024-25 thaw, and is seen as a step towards deeper engagement between the two Asian giants. Discussions will focus on trade, investment, regional security, and people-to-people exchanges, with an aim to manage differences and ensure a peaceful border situation. Both countries have been working to de-escalate tensions since the 2020 Galwan Valley clash through high-level talks and diplomatic engagements.
- Chinese President Xi Jinping is scheduled to visit India for the BRICS Summit in New Delhi after a gap of seven years.
- The visit marks a significant milestone in stabilizing India-China bilateral relations following the 2024-25 thaw.
- Discussions will center on trade, investment, regional security, and maintaining peace along the border.
The August 2026 visit of Japan's Defence Minister Shinjiro Koizumi to India marked a significant step in strengthening the India-Japan defence partnership. The visit coincided with the 2+2 Ministerial Dialogue and highlighted the expanding scope of cooperation beyond traditional areas, encompassing technology, research, and capacity building. Both nations emphasized a free, open, and rules-based Indo-Pacific, working together to counter coercion, ensure regional stability, and strengthen maritime security. The partnership builds on existing frameworks like the Quad and the bilateral 2+2 dialogue, aiming to deepen trust, interoperability, and long-term stability in the region.
- Japan's Defence Minister Shinjiro Koizumi visited India in August 2026 for key strategic talks.
- Both nations emphasized a free, open, and rules-based Indo-Pacific order.
- Cooperation expanded into advanced technologies, cyber security, AI, and defense manufacturing.
The recent visit of Japan's Defense Minister to India marks a significant milestone in elevating bilateral ties from a transactional relationship to a deeper operational partnership. Key agreements focus on joint defense manufacturing under the 'Make in India' framework, maritime domain awareness in the Indo-Pacific, and complex military exercises. By integrating technological capabilities and enhancing interoperability, both nations seek to build a resilient security architecture to counter regional challenges and maintain a free and open Indo-Pacific.
- India and Japan are advancing their defense partnership from basic dialogues to operational capabilities and joint technology development.
- Agreements include co-development of uncrewed systems, missile components, and exploring joint naval shipbuilding initiatives.
- Maritime domain awareness and information-sharing are critical pillars of cooperation in the Indo-Pacific to ensure freedom of navigation.
Maldives President Mohamed Muizzu has invited British Prime Minister Andrew Burnham for formal talks on the disputed Chagos Islands, expressing strong opposition to the UK's previous agreement to transfer sovereignty to Mauritius. The Maldives maintains that it holds the most legitimate claim to the archipelago based on proximity and historical maritime boundaries. While the UK had previously moved to cede sovereignty and lease the strategic U.S.-U.K. military base on Diego Garcia, domestic political shifts and international criticism have complicated the legislative process required to finalize the transfer.
- Maldives President Mohamed Muizzu invited British PM Andrew Burnham to discuss the disputed Chagos Islands.
- The Maldives opposes the UK's agreement to cede sovereignty of the Chagos Archipelago to Mauritius, asserting its own legitimate claim.
- The Chagos Islands host the critical U.S.-U.K. military base on Diego Garcia, vital for regional security.
The Houthi rebel group in Yemen launched a wave of drone and ballistic missile attacks on Saudi Arabia, targeting oil facilities, utilities, and economic infrastructure, including a major refinery in Jazan and an oil depot in Abha. The strikes resulted in multiple injuries, sparked massive fires, and temporarily suspended operations at several critical energy sites. The escalation has added pressure to global oil supplies and prompted strong retaliatory vows from the Saudi-led coalition, further intensifying the regional conflict involving Yemen, the Houthis, and broader geopolitical tensions.
- Houthi rebels launched coordinated missile and drone attacks targeting major Saudi oil facilities, utilities, and economic targets.
- The attacks caused fires at key infrastructure sites like the Aramco oil depot in Abha Bulk and a major oil refinery in Jazan.
- The strikes threaten global oil supplies by disrupting routes near the Strait of Hormuz and the Bab el-Mandeb waterway.
India has strongly reacted to the inclusion of the Line of Actual Control in a UN-endorsed map, asserting that the depiction of Arunachal Pradesh and Aksai Chin is incorrect and does not reflect ground reality. The map, published in July 2026, shows a boundary line that India has termed unspecified and unacceptable. The Ministry of External Affairs clarified that the map does not constitute a change in India's position and must not be interpreted as a reflection of the government's stance. India maintains that its sovereignty over Arunachal Pradesh and Aksai Chin remains firm, and the LAC is not a final boundary.
- India strongly reacted to the depiction of the LAC in a UN-endorsed map published in July 2026.
- The disputed regions include Arunachal Pradesh and Aksai Chin, which India considers an integral part of its territory.
- India maintains that the LAC is not a final boundary and the depiction does not reflect ground reality.
India and the Chinese armies held their first Corps Commander-level meeting in the Eastern Sector on Sunday, marking a significant expansion of the military dialogue mechanism beyond Ladakh. The talks, held at the Vacha-Damai Border Personnel Meeting Point in Arunachal Pradesh, focused on easing tensions, maintaining peace and stability, preventing further escalation, and promoting mutual trust along the Line of Actual Control. The meeting comes ahead of the upcoming BRICS Summit in New Delhi where Chinese President Xi Jinping is expected to attend, highlighting a diplomatic context alongside military engagements.
- India and China conducted their first Corps Commander-level meeting in the Eastern Sector of Arunachal Pradesh.
- The talks took place at the Vacha-Damai Border Personnel Meeting Point to address overlapping claims and differing perceptions along the LAC.
- Discussions aimed at easing tensions, maintaining border peace, preventing further escalation, and enhancing mutual trust.
BRICS nations are actively exploring alternative cross-border payment systems to reduce reliance on the U.S. dollar and mitigate transaction costs associated with Western-dominated networks like SWIFT. Driven by Russia's chairmanship and concerns over financial sanctions, member countries are discussing national currency settlements, digital currencies, and messaging frameworks. While the initiative aims to enhance financial autonomy and trade efficiency among emerging economies, analysts note significant technical, political, and logistical challenges in establishing a unified alternative system.
- BRICS nations are discussing alternative cross-border payment systems to reduce global reliance on the U.S. dollar.
- Current international transactions heavily rely on SWIFT and correspondent banking, leading to high fees and delays.
- Proposals include using central bank digital currencies (CBDCs) and bilateral local currency trade settlements.
The 26th Shanghai Cooperation Organisation (SCO) summit concluded in Bishkek, Kyrgyzstan, with member states strongly condemning military strikes on Iran and reaffirming support for its sovereignty. Prime Minister Narendra Modi, attending the summit, emphasized multilateral cooperation, counter-terrorism, and regional stability. Leaders also discussed the expansion of the BRICS-SCO nexus, economic connectivity via the International North-South Transport Corridor (INSTC), and diplomatic mechanisms to counter terrorism, separatism, and extremism in the region.
- The 26th SCO summit in Bishkek adopted a strong declaration condemning strikes on Iran and backing its sovereignty.
- Prime Minister Narendra Modi called for zero tolerance against terrorism and enhanced regional connectivity.
- Discussions highlighted economic corridors like the INSTC and cooperation among member states.
Thousands of opposition supporters in Bangladesh launched a nationwide long march, mounting severe pressure on the government over acute shortages of cooking gas, electricity, and fertilizer. Marking the first major street mobilization against the administration that took power six months ago, protesters marched from Dhaka toward Chittagong. Opposition leaders criticized the government's handling of the crisis, emphasizing that the movement aims to secure basic utilities and livelihood stability for every household across the country.
- Opposition supporters in Bangladesh began a massive long march over severe utility and energy shortages.
- The protests target acute shortages of cooking gas, electricity, and fertilizer affecting households.
- This marks the first major street mobilization against the government since it assumed power six months ago.
The U.S. military launched strikes against three Iranian oil tankers, describing them as part of a shadow fleet used to fund the Islamic Revolutionary Guard Corps (IRGC) and regional proxies. The action followed reported Iranian attacks on two U.S. Navy ships in the region. U.S. leadership stated its readiness to defend American forces and target Iran's exposed oil infrastructure if provocations continue. The escalation comes despite diplomatic efforts and previous attempts by the U.S. administration to minimize conflict, further aggravating geopolitical instability in the Middle East.
- The U.S. military struck three Iranian oil tankers following attacks on U.S. Navy ships.
- Washington justified the strikes by claiming the tankers belonged to a shadow fleet funding the IRGC.
- The U.S. reiterated its stance to protect its forces and target Iranian oil assets if necessary.
China is pushing forward with its massive 60 GW hydropower project on the Yarlung Zangbro river in Tibet despite safety and ecological concerns highlighted by a recent glacial collapse near the Nepal-China border. The project, including a massive reservoir and a 40-km tunnel, is part of China's 15th Five-Year Plan. India has expressed strong concerns regarding downstream water flows, storage, and broader ecological impacts in the Brahmaputra basin. While China maintains its projects are environmentally sound and beneficial, experts and downstream nations remain wary of hydrological transparency and ecological destabilization.
- China is advancing its 60 GW hydropower project on the Yarlung Zangbro river in Tibet.
- The mega project involves five power stations, a large reservoir, and a 40-km tunnel through the Great Bend.
- India remains deeply concerned about downstream water flows, ecological impact, and a lack of hydrological data sharing.
Iran launched missile and drone strikes against U.S. military targets in West Asia, including Kuwait's Ahmed al-Jaber Air Base, following renewed threats of strikes by U.S. President Donald Trump. While Kuwait intercepted attacks and condemned the breach of sovereignty, the Iranian Revolutionary Guards claimed responsibility, vowing to avenge casualties resulting from previous U.S. bombardments. U.S. Central Command confirmed no U.S. military targets were damaged, though regional allies expressed grave concern over the widening conflict, highlighting the escalating risk of a broader regional war.
- Iran launched missile and drone attacks targeting U.S. military bases across West Asia, including Kuwait.
- The Islamic Revolutionary Guard Corps vowed retaliation and revenge for casualties resulting from prior U.S. airstrikes.
- U.S. Central Command stated that U.S. military targets were unaffected, contrasting with Iranian claims of successful strikes.
Iran launched retaliatory missile and drone strikes against U.S. military targets across West Asia, hitting Kuwait's Ahmed al-Jaber Air Base, following extensive U.S. airstrikes in Iran that killed at least 19 Iranians. While Kuwait intercepted attacks and condemned the strike as a grave breach of international law, Iran's Islamic Revolutionary Guard Corps vowed further revenge. The escalation has intensified global concerns over a widening regional war, drawing in Gulf nations, threatening critical infrastructure, and prompting urgent international calls for de-escalation and the protection of civilians.
- Iran targeted U.S. bases in West Asia, including Kuwait's Ahmed al-Jaber Air Base, with missiles and drones.
- The strikes followed extensive U.S. bombing across Iran that resulted in at least 19 fatalities.
- Iran's Revolutionary Guards vowed further retaliation, raising fears of a broader regional conflict.
The 25th round of India-China talks in Beijing focused on an 'Early Harvest' in boundary negotiations to build trust without compromising essential issues. While an early harvest could address certain border sectors like Demchok and Depsang, experts warn against piecemeal agreements that could undermine long-term strategic interests. Key concerns include the status of the Siliguri Corridor, China's proposals regarding Bhutan, and the need to adhere to previous agreements like the 2005 Agreement on Political Parameters and Guiding Principles. India must prioritize territorial integrity and comprehensive settlement over short-term diplomatic gains.
- India and China discussed an 'Early Harvest' approach to boundary negotiations in Beijing.
- Experts caution that piecemeal agreements could create strategic vulnerabilities and compromise core interests.
- Key areas of concern include the Siliguri Corridor and third-country border implications.
The ongoing Russia-Ukraine conflict is escalating with long-range attacks, increasing the risk of a wider war in Europe. Russia is employing "gray zone" tactics, testing NATO's resolve through incidents like drone incursions and cyberattacks. Despite Russia controlling 20% of pre-2014 Ukrainian territory, its territorial gains have slowed, and Ukrainian long-range attacks are inflicting significant economic damage, particularly on Russia's energy sector. The article warns that further escalation could lead to an all-out war between nuclear-armed sides, emphasizing that Russia must opt for serious diplomatic engagement with Ukraine and the West to find a middle ground and ensure long-term regional stability.
- The Russia-Ukraine conflict is escalating, posing a significant risk of wider war in Europe.
- Russia's "gray zone" tactics are testing NATO's resolve and increasing regional instability.
- Despite territorial gains, Russia's advance has slowed, and Ukraine's long-range attacks are causing economic pain.
India and Uzbekistan have elevated their ties to a comprehensive strategic partnership, setting an ambitious target of $5 billion in annual trade by 2030. During PM Modi's visit, 11 agreements were signed, focusing on critical minerals, mining, defence, tourism, and digital public infrastructure, including UPI. A framework for long-term supply of Uranium from Uzbekistan to India was also established, aligning with civil nuclear energy cooperation. Both nations emphasized co-development and co-production in defence industries and committed to addressing terrorism and extremism. The visit also included an agreement for the restoration of Buddhist sites, reflecting a deepening engagement in Central Asia.
- India and Uzbekistan elevated their bilateral ties to a Comprehensive Strategic Partnership.
- They set a target of $5 billion in annual trade by 2030 and signed 11 agreements across various sectors.
- A framework was established for long-term supply of Uranium from Uzbekistan to India for civil nuclear energy cooperation.
India is committed to concluding a 'balanced and mutually beneficial' Comprehensive Economic Partnership Agreement (CEPA) with Chile this year. This commitment was reaffirmed during a meeting between Commerce Secretary Rajesh Agrawal and Chile's Vice-Minister Paula Estévez Weinstein in Santiago. Negotiations for the CEPA began in May, following the signing of the Terms of Reference in May 2025. Both nations, as members of the Global South, emphasized the importance of their growing relationship and the potential for enhanced economic cooperation in sectors like healthcare, pharmaceuticals, energy, minerals, agriculture, machinery, and engineering.
- India is committed to concluding a Comprehensive Economic Partnership Agreement (CEPA) with Chile this year.
- Negotiations for the CEPA began in May, following the signing of the Terms of Reference on May 8, 2025.
- The agreement aims to deliver equitable and commercially meaningful outcomes for businesses in both countries.
Turkiye will host the first ministerial meeting of a new regional defense grouping with Saudi Arabia and Pakistan on Monday in Istanbul. The Mecca Joint Defence Agreement, signed earlier this month, commits the three countries to mutual defense in case of attack. This pact emerges amidst heightened tensions between the United States and Iran, and ongoing attacks by Tehran-backed Houthi rebels in the region. The meeting will establish a 'political and defence strategic committee' involving Foreign and Defence Ministers and military chiefs, uniting NATO's second-largest army (Turkiye) with the Islamic world's only nuclear-armed state (Pakistan) and a leading Gulf power (Saudi Arabia).
- Turkiye will host the first ministerial meeting of a new regional defense grouping with Saudi Arabia and Pakistan.
- The Mecca Joint Defence Agreement commits the three nations to mutual defense.
- The pact is formed against the backdrop of US-Iran tensions and Houthi rebel attacks in the region.
Bangladesh's Minister of State for Foreign Affairs, Humayun Kobir, announced that a two-plus-two dialogue with China will commence 'very near future.' The announcement followed discussions with the Chinese Ambassador, Yao Wen, on various projects, including the Teesta River Comprehensive Management and Restoration Project. Kobir highlighted China as an important development partner and reaffirmed Bangladesh's commitment to the 'One China policy.' The dialogue, which will cover diplomacy and defense, is expected to begin at the Minister of State level before progressing to the Foreign Minister level.
- Bangladesh and China will soon begin a two-plus-two dialogue covering diplomacy and defense.
- The dialogue will initially involve Minister of State level officials before moving to Foreign Minister level.
- Discussions with the Chinese Ambassador included the Teesta River Comprehensive Management and Restoration Project.
Iran's Supreme Leader Mojtaba Khamenei has called for Muslim countries to unite against the United States and Israel, urging regional rulers to recognize and confront their 'real enemy.' In a written message, he emphasized unity of words, friendship, and cooperation among Muslims, stating that any division serves the enemies of Islam. Khamenei, who has the final say on major state policies, also called on Iranian officials and citizens to put aside differences and work together. He further advocated for the gradual de-dollarisation of the Iranian economy and boosting economic production amid US sanctions.
- Iran's Supreme Leader Mojtaba Khamenei called for Muslim unity against the United States and Israel.
- He urged regional rulers to recognize and confront their 'real enemy' and avoid divisions among Muslims.
- The call for unity comes six months after the start of the West Asia war, during which Iran targeted US military bases.
India and Uzbekistan have elevated their relationship to a comprehensive strategic partnership, setting a trade target of $5 billion by 2030. During PM Narendra Modi's two-day visit, 11 agreements were signed, covering critical minerals, mining, defense, pharmaceuticals, and digital public infrastructure, including UPI payments. Both nations agreed to establish a framework for long-term uranium supply and enhance cooperation in counter-terrorism. The leaders also agreed on the restoration and conservation of Buddhist sites, highlighting shared cultural heritage and commitment to a free, open, and rules-based international order.
- India and Uzbekistan have elevated their ties to a comprehensive strategic partnership.
- A bilateral trade target of $5 billion has been set for 2030.
- Eleven agreements were signed, including a framework for long-term uranium supply from Uzbekistan to India.
The catastrophic flash floods in Nepal on August 26 serve as a stark reminder for countries to strengthen disaster resilience. Nepal, highly vulnerable to Glacial Lake Outburst Floods (GLOFs), has experienced 26 such events since the 1970s. Globally, over 9,500 gigatonnes of glacier mass have been lost since 1975, with the Central Himalaya seeing a 20% decline in glacier area. The article presents data on increasing natural disasters, displaced populations, and billions in economic damages, underscoring that many low-income countries, including India and Nepal, are highly vulnerable and ill-prepared.
- Nepal experienced catastrophic flash floods on August 26, emphasizing the need for global disaster preparedness.
- Nepal is highly vulnerable to Glacial Lake Outburst Floods (GLOFs), with 26 events since the 1970s.
- Global glacier mass has declined by over 9,500 gigatonnes since 1975, and the Central Himalaya's glacier area has decreased by over 20% since 1990.