India needs to increase exports to BRICS economies to address its trade imbalance with several member countries, much of which is driven by energy imports, BRICS Chamber of Commerce and Industry Chairman Sameep Shastri said, as per media reports.
Speaking ahead of the BRICS Summit in New Delhi, Shastri said India’s large energy requirements and population of 1.4 billion contribute to high imports from several BRICS economies. Strengthening exports would therefore be important to make these trading relationships more balanced.
He said India has been making progress in manufacturing and improving product standards, which could support higher exports. Indian standards are also gaining greater acceptance in sectors including pharmaceuticals.
Shastri also called for greater cooperation between BRICS economies in areas where their capabilities complement each other, alongside a stronger focus on exports and technology sharing.
Local Currencies And Digital Payments
Shastri backed greater use of local currencies and digital payment systems for trade between BRICS countries. He said businesses face additional conversion and transaction costs when transactions are routed through the US dollar.
India’s Unified Payments Interface (UPI) was cited as an example of digital payment infrastructure that could facilitate such transactions. Greater use of local currencies and digital payments also forms part of the wider discussion around reducing dependence on the dollar in international trade.
Logistics Remain A Challenge
Shastri also flagged geographical and geopolitical challenges to expanding trade between BRICS economies, which are spread across different regions.
India, China and Russia are exploring alternative trade and transport routes, including the Arctic route, as part of efforts to strengthen connectivity and facilitate trade.
India-Russia Trade In Focus
On trade agreements within BRICS, Shastri indicated that progress on trade arrangements involving India and Russia could help deepen economic ties.
India is currently negotiating a free trade agreement with the Eurasian Economic Union, of which Russia is a member. India and Russia have also set a target of taking bilateral trade above USD 100 billion by 2030, alongside efforts to increase Indian exports and make trade between the two countries more balanced.
During India’s BRICS chairship this year, member countries have also discussed expanding trade and developing more resilient and diversified supply chains.