G7 vs BRICS: Which Bloc Holds More Power in 2026?

G7 vs BRICS comparison has become increasingly relevant in light of the shifting balance of power in the global arena beyond the existing Western hegemony. The G7 continues to be highly relevant in terms of global finance, advanced technologies, investments, and rules for institutions, while the BRICS has become increasingly relevant because of its massive population, emerging economy, energy resources, and call for a multipolar world. With the upcoming chairmanship of India in the BRICS and the preparation of the 18th BRICS summit, 2026 holds further relevance in this context.

What is G7 and BRICS?

Group of Seven (G7) is a discussion group that consists of the US, Canada, France, Germany, Italy, Japan and the UK. The European Union is involved in G7 discussions but is not counted among the seven G7 members. This group unites highly developed industrialized countries with considerable impact on global finances, technology, trade and security.

BRICS, initially created around Brazil, Russia, India and China, acquired a new member in 2011 — South Africa. Further development of the group resulted in acquisition of new countries, namely Egypt, Ethiopia, Iran, UAE and Indonesia. There are 11 member countries of BRICS listed in its official documents; however, there are also partner-countries.

Unlike G7, BRICS is characterized by political diversity. It comprises democratic, monarchic and authoritarian regimes. Its unity is based on economic cooperation, more representation of Global South and institutional reform of global governance institutions.

Economic Power of G7 vs BRICS

Which bloc has more economic power? The response is heavily dependent on the criteria for measuring economic power.

In the case of nominal GDP, G7 has a considerable advantage as it features the US – the largest economy in the world, alongside other high-income economies. Financial depth and strong capital markets, as well as a higher level of income, follow from that.

When it comes to PPP-based GDP, things get quite different since the GDP share of BRICS countries becomes substantially larger compared to nominal GDP due to the fact that the indicator takes into consideration the differences in domestic price levels and purchasing power.

IMF 2026 figures also emphasize the structural difference as the GDP per capita in advanced countries, such as those represented by the G7, is significantly higher than in emerging and developing economies.

Energy, Manufacturing, and Technology

BRICS is well endowed with regard to energy and natural resources. Russia, Iran, Saudi Arabia, and the United Arab Emirates have endowed BRICS with considerable clout in energy markets, whereas Brazil, China, India, among others, are endowed with agricultural, industrial, and manufacturing power.

The Chinese stand out due to their prominence in manufacturing, renewables value chain, electric vehicles, and mineral processing.

But the G7 has considerable clout regarding the top of global value chains. Countries like the US, Japan, and European countries are key centers for advanced semiconductors, aerospace, biotech, software, financial services, and high-level research.

Hence, BRICS is more empowered in several physical and industrial inputs, but G7 is more powerful in advanced technologies, finances, and high-value services.

Control Over Global Finance

This still is one of the main strengths of the G7.

The dollar continues to prevail in the official foreign exchange reserves. The IMF reports that the share of dollars in the global foreign exchange reserves made 57.13% in Q1 2026, and the euro still was the second largest reserve currency.

The depth of the capital market of the USA, the international nature of the dollar and Western financial institutions gives the G7 control over global finance.

BRICS actively supports the local currency settlements, alternative financial payment systems and development finance. The New Development Bank is a key institution of the BRICS. In addition, China’s Cross-border Interbank Payment System provides another channel for the financial operations across the borders.

But BRICS has not substituted the dollar-financial system. The very growth of the local currency trade can be treated as financial diversification and risk management.

Why Are BRICS Significant to India?

India enjoys a special place between both groupings, since India is a founding member of BRICS as well as a member of strategic partnerships that include the US and other G7 members.

For India, the BRICS forum is an avenue through which it can push its agenda on behalf of the Global South, including reforms of the international system and increased presence in global governance and development finance. However, at the same time, India’s relationships with Western economies also matter for its technological, economic, and military interests.

This way, India’s chairmanship of BRICS in 2026 offers an opportunity for cooperation without making BRICS an anti-Western bloc. The 2025 Rio Declaration officially endorsed India’s chairing of the 18th BRICS summit in 2026.

G7 vs BRICS: Which Bloc Has More Power?

The emerging global order is therefore less about G7 versus BRICS and more about competing centres of influence. Many countries seek investment, technology and security partnerships from the West while simultaneously strengthening economic ties with BRICS economies.