'Brics has overtaken G7': Putin hails 'key partner India', growth of Global South

(Photo credit: PTI)

Russian President Vladimir Putin on Friday said that "Brics has overtaken the G7" in terms of economic size, while also praising India as a "key partner" for its leading role in the IT and software industry.Speaking at the annual St Petersburg International Economic Forum, Putin said that developing countries are playing an increasingly important role in the global economy, while the share of Western economies has been shrinking."If you look at the global GDP dynamics of the last five years, you will see that almost half of its annual growth, 49%, is accounted for by Brics countries, whereas the contribution of the so-called group of seven is estimated at 18%...,"Putin

said."The share of Brics and the world GDP based on purchasing power parity stands at 40%, whereas the G7 share is less than 29%," he said."So Brics has already overtaken the G7, and it did so back in 2020, but this gap is increasing. This gap is expected to grow in favour of Brics..." he added.

He also projected stronger growth for Brics economies compared to advanced nations. "The G7 is going to grow at best by 1.1 % per year, whereas Brics nations are going to grow by more than 4%," he said, adding that this trend is expected to continue.

Further praising India's role in the digital economy, Putin said, "Another of our key partners, India, is one of the leading players in the IT industry.""It accounts for a significant share of the global software market," he added.Brics currently comprises 10 full members, expanded from the original grouping of Brazil, Russia, India, and China formed in 2009, with South Africa joining later. Egypt, Iran, Ethiopia, the UAE joined as full members in 2024, followed by Indonesia in 2025. The bloc now includes 20 countries when associate members are counted. India is currently holding the Brics presidency this year.Putin’s remarks come amid continued tensions between Brics and the Western economies. Earlier last year, US President Donald Trump criticised the group, calling it a threat to the US dollar and warning of 100% tariffs if it attempts to launch a rival currency.Putin also accused the Western nations of weakening the global economy through unilateral sanctions.

"The sanctions and blocking of Russia's sovereign reserves have irreversibly impacted the standing of international currencies, the dollar and the euro," he said."Just like Russia, any other country could lose access to their legitimate assets in dollars or euros, as well as Western financial and payment systems," he added.He further said that high state debt and shifting global dynamics were undermining trust in Western institutions.

"The roots of the current global turbulence lie in the transition from a vertical, hierarchical model, which served the interests of a small number of states, to a more complex, distributed and multipolar one," he said. "Russia views global changes not only as a threat but also as immense opportunities. And to capitalise on them, we aim to act swiftly and pragmatically," the Russian president noted.The forum comes at a time when Russia’s economy faces pressure due to the ongoing conflict in Ukraine, with rising taxes and increased domestic borrowing used to manage the budget deficit, the AP reported.The St. Petersburg International Economic Forum is often compared to the World Economic Forum in Davos and is used by Russia to showcase its economic outlook and attract investment, although participation from Western leaders has declined since 2022.