Russian President Vladimir Putin declared on Friday that the BRICS group of nations has overtaken the Group of Seven (G7) in terms of economic size, while also lauding India as a key partner in the information technology and software sectors. Speaking at the annual St. Petersburg International Economic Forum, Putin emphasized the growing importance of developing countries in the global economy, contrasting it with the shrinking share of Western economies.
BRICS vs G7: Economic Dominance Shift
Putin presented data showing that BRICS nations now account for 40% of global GDP based on purchasing power parity, compared to less than 29% for the G7. He noted that BRICS surpassed the G7 in 2020, and the gap continues to widen. According to Putin, BRICS countries contribute 49% of annual global GDP growth, while the G7 contributes only 18%. He projected that BRICS economies would grow at over 4% annually, whereas G7 growth would be limited to 1.1%.
India's Role in IT and Software
Putin specifically praised India, calling it a key partner and a leading player in the IT industry. He highlighted India's significant share of the global software market, underscoring its importance in the digital economy. India currently holds the BRICS presidency for the year.
BRICS Expansion and Membership
BRICS originally formed in 2009 with Brazil, Russia, India, and China, later adding South Africa. In 2024, Egypt, Iran, Ethiopia, and the United Arab Emirates joined as full members, followed by Indonesia in 2025. The bloc now includes 20 countries when associate members are counted. This expansion strengthens the group's economic and political weight.
Criticism of Western Sanctions
Putin accused Western nations of weakening the global economy through unilateral sanctions, particularly targeting Russia. He argued that sanctions and the blocking of Russia's sovereign reserves have damaged trust in the dollar and euro. He warned that any country could face similar asset freezes, undermining confidence in Western financial systems.
He also criticized high state debt and shifting global dynamics, stating that the current turbulence stems from a transition from a hierarchical model favoring a few states to a multipolar world order. Russia views these changes as both a threat and an opportunity, aiming to act swiftly and pragmatically.
Context and Forum Significance
The St. Petersburg International Economic Forum, often compared to the World Economic Forum in Davos, serves as a platform for Russia to showcase its economic outlook and attract investment. However, Western participation has declined since 2022 due to the conflict in Ukraine. The forum occurs as Russia's economy faces pressure from the ongoing war, with rising taxes and increased domestic borrowing to manage budget deficits.
Putin's remarks also come amid tensions between BRICS and Western economies. Former US President Donald Trump previously criticized BRICS as a threat to the US dollar, warning of 100% tariffs if the group attempts to create a rival currency.
