Strategic Alliances in a Multipolar World: Navigating RIC Convergence for Emerging Market Investments

The global economic landscape is undergoing a profound transformation, driven by the re-emergence of the Russia-India-China (RIC) trilateral partnership. As the U.S.-led unipolar order faces challenges from multipolar dynamics, investors must recalibrate their strategies to account for the shifting centers of power and capital. The RIC convergence, bolstered by the Shanghai Cooperation Organisation (SCO) summit in Tianjin and the broader BRICS+ framework, represents a strategic recalibration with significant implications for emerging markets.

The RIC Trilateral: A New Axis of Economic Power

The RIC bloc’s combined GDP of $53.9 trillion in 2025 underscores its growing economic clout, rivaling traditional Western-dominated systems [1]. This convergence is not merely a geopolitical maneuver but a deliberate effort to reshape global trade, finance, and technology ecosystems. For instance, the recent border agreement between India and China at the SCO summit has eased a critical barrier to RIC cohesion, enabling deeper economic integration [1]. Meanwhile, Russia’s deepening energy and defense ties with China—bolstered by record-high bilateral trade—have created an asymmetrical partnership that India is struggling to match [2].

Investors should note that the RIC trilateral is increasingly leveraging BRICS+ mechanisms to bypass U.S. dollar dominance. Initiatives like the BRICS Customs Union and the proposed transnational submarine cable project aim to enhance digital and economic interoperability, reducing reliance on Western infrastructure [4]. These developments signal a shift toward localized trade networks and alternative financial systems, which could redefine capital flows in emerging markets.

India’s Strategic Balancing Act

India’s role in the RIC framework is pivotal yet complex. While its economic relationship with the U.S. remains robust—U.S. consumers purchased $77.5 billion of Indian goods in 2024 [1]—New Delhi is simultaneously deepening ties with Moscow and Beijing. This balancing act is evident in India’s participation in the Quad (a U.S.-led Indo-Pacific alliance) alongside its engagement with RIC and BRICS+. The challenge for investors lies in assessing how India navigates these competing priorities without compromising its strategic autonomy.

A key risk is the unresolved border disputes between India and China, which could disrupt trade and investment flows. However, the 2024 de-escalation agreements in Ladakh and the resumption of mutual patrolling rights suggest a pragmatic approach to managing tensions [1]. Investors should monitor India’s ability to leverage its demographic dividend and digital infrastructure to attract capital, even as it aligns with RIC’s multipolar vision.

Strategic Asset Allocation in a RIC-Driven World

The RIC convergence demands a nuanced approach to asset allocation. Traditional emerging market benchmarks, which have long been dominated by U.S. dollar-linked assets, may underrepresent the opportunities in RIC-led corridors. For example, the BRICS Climate Finance Framework and the SME Plan (2025–2030) are creating new avenues for green investments and small-business growth in the Global South [4]. Similarly, the RIC Strategic & Economic Corridor—encompassing energy pipelines and digital infrastructure—offers high-growth potential for sectors like renewable energy, cybersecurity, and cross-border e-commerce [4].

Investors should also consider the risks of geopolitical fragmentation. While the RIC trilateral promotes a “no limits partnership” between China and Russia [3], India’s alignment with the U.S. and Quad could create friction. This asymmetry necessitates a diversified portfolio that balances exposure to RIC-led initiatives with hedging against U.S.-centric markets.

Conclusion: Reimagining Emerging Market Investing

The RIC convergence is not a fleeting trend but a structural shift in global economic power. As the bloc advances its vision of a decolonized, multipolar order, investors must adapt by prioritizing assets that align with RIC’s strategic priorities. This includes infrastructure projects, digital ecosystems, and green technologies that underpin the BRICS+ agenda. However, success will depend on navigating the inherent complexities of India’s balancing act and the unresolved tensions within the RIC framework.

In this new era, strategic asset allocation requires a dual lens: one focused on the opportunities unlocked by RIC’s economic convergence and the other on the risks posed by geopolitical rivalries. By integrating these insights, investors can position themselves to thrive in a world where power—and capital—are increasingly distributed.

Source:
[1] Russia, India, China: Can the old troika deliver new gains? [https://m.economictimes.com/news/economy/foreign-trade/russia-india-china-ric-troika-sco-summit-2025-modi-putin-xi-jinping-relations-trade-global-power-shift-geopolitics-indo-pacific/articleshow/123557588.cms]
[2] Partners or Rivals? Areas of Convergence and Divergence of Interests in the Indo-Pacific [https://www.fpri.org/article/2025/08/partners-or-rivals-areas-of-convergence-and-divergence-of-interests-in-the-indo-pacific/]
[3] Russia-India-China troika on display; PM Modi, Putin, Xi share warm moments at SCO summit [https://timesofindia.indiatimes.com/india/always-a-delight-russia-india-china-troika-on-display-pm-modi-putin-xi-share-warm-moments-at-sco-summit/articleshow/123624627.cms]
[4] Strengthening RIC for a Stronger BRICS+ [https://eng.globalaffairs.ru/articles/ric-brics-sarma/]