The 18th BRICS Summit, which commenced in New Delhi on Saturday, highlights trade as a pivotal aspect of the bloc’s ambitions for economic collaboration. According to data from UNCTAD, intra-BRICS merchandise trade reached $1.17 trillion in 2024, marking a rise of over 13 times since 2003. This substantial growth indicates a burgeoning expansion in trade ties among the member nations.

The reported figure of $1.17 trillion concerns trade exclusively between BRICS countries and does not reflect the total value of their global trade. Furthermore, the larger context reveals that in 2025, BRICS members collectively exported goods worth $5.67 trillion, which accounted for 21.6 per cent of world exports, while their imports totalled $4.58 trillion, contributing to 17.3 per cent of global imports.

Despite the impressive figures, there remains a notable gap in the overall trade conducted by BRICS countries with each other, suggesting that there is significant potential for further growth in intra-bloc trade.

Trade Dynamics and Imbalances

Current statistics reveal a complex trade dynamic within BRICS. Data from the Global Trade Research Initiative indicates that BRICS nations exported approximately $1.1 trillion worth of goods to each other, constituting only 18.8 per cent of their total exports. Conversely, the bloc imported around $1.4 trillion from fellow member states, representing 29.5 per cent of their total imports.

The disparity becomes more pronounced when these figures are contextualised in relation to global trade. Notably, intra-BRICS exports account for merely 4.1 per cent of global exports, and intra-BRICS imports account for 5.4 per cent of total world imports. This unveils the extent to which BRICS members are significant global trading entities, yet highlights the underdeveloped nature of their trade relations with one another.

China is a central player in this network, exporting $550.8 billion worth of goods to other BRICS countries while importing $464.9 billion from them. This concentration also extends to other major players within the group, notably India, which faces its own challenges in balancing trade with fellow BRICS members.

India’s Trade Deficit Within BRICS

India’s trade with BRICS has more than doubled from Rs 203.1 billion in FY2021 to Rs 417.5 billion in FY2026. However, this growth is skewed heavily towards imports. Indian exports to BRICS increased by 48.8 per cent, from Rs 64.3 billion to Rs 95.7 billion, while imports surged by 131.8 per cent, escalating from Rs 138.8 billion to Rs 321.8 billion. This led to a widening trade deficit of Rs 226.1 billion, up from Rs 74.5 billion five years prior.

The bulk of India’s imports arises from China, which accounted for Rs 131.6 billion. Additionally, imports from Russia jumped significantly, primarily due to energy purchases, increasing from Rs 5.5 billion to Rs 55.4 billion. Consequently, China, the UAE, and Russia collectively constituted nearly 84 per cent of India’s total imports from BRICS.

This pronounced imbalance in trade poses a significant hurdle for India, as merely increasing trade volumes does not address the issue of sustaining higher export levels in comparison to imports. Addressing this imbalance will be key to enhancing India’s trade relationships within the bloc.

Future Prospects and Recommendations

The BRICS member countries are exploring ways to increase intra-bloc trade through expanding into non-traditional sectors such as services and digital trade. An industry report states that global trade in digitally delivered services has surpassed $4.5 trillion, highlighting a potential growth area for BRICS members with varying strengths.

Additionally, the bloc is aiming to facilitate smoother cross-border payments and enhance market access, which the Indian GTRI emphasises as necessary for achieving balanced trade dynamics. Suggestions include actions to improve India’s access to the markets of China, Russia, and Indonesia, alongside addressing non-tariff barriers.

As the BRICS 2026 Summit unfolds, the primary challenge ahead lies in translating the current trade figures into a more balanced, mutually beneficial trading environment across member nations. The collective economic strength of BRICS, representing about half of the world’s population and approximately 40 per cent of global GDP, could pave the way for expanded markets for Indian exports and sustainable economic partnerships moving forward.

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