India views the expansion of BRICS as a significant platform for global trade and economic cooperation. However, recent statistics paint a different picture: although trade turnover between India and BRICS countries has reached record levels, the trade deficit is rapidly growing. The main reason for this growth is the increase in imports from China, which leads to a constant increase in India's deficit.
India's trade deficit with BRICS countries reached $226.1 billion. In 2025–26, India imported about $321.8 billion worth of goods from 10 BRICS partner countries, while exports to these countries amounted to approximately $95.7 billion. Thus, the total trade deficit grew to $226.1 billion, equivalent to approximately 19 lakh crore rupees. China contributed the most to this deficit, with India's trade deficit with it amounting to $112.2 billion, against a total trade volume of $155 billion between the two countries.
India remains significantly dependent on China in crucial sectors such as electronics, machinery, solar installations, and batteries.
Against the backdrop of the growing trade imbalance, BRICS countries are intensifying efforts to conduct settlements in national currencies. The goal of these measures is to reduce dependence on the dollar in international transactions and increase the flexibility of the payment system. Although no decision has been made yet to introduce a new common currency or system, discussions continue regarding simplifying trade and cross-border payments in local currencies among member states.
Work is also underway to facilitate digital payments between BRICS countries. Possibilities for compatibility between platforms such as India's UPI and Brazil's Pix are being discussed. Furthermore, options for accelerating and reducing the cost of cross-border payments through central bank digital currencies (CBDCs) are being studied. A common BRICS Pay system has not yet been launched, and current efforts are focused on improving interaction between various national digital payment systems.
BRICS countries are also taking steps to simplify access to financing for small and medium-sized enterprises (SMEs). Members of the bloc are working on new credit rating frameworks and invoice discounting options for export-oriented SMEs. The objective is to reduce the gap in trade finance for small entrepreneurs, allowing them to receive funding not only based on large collateral but also on their turnover and cash flow. Nevertheless, these initiatives are in the initial stages and require time for implementation.
India is also insisting on strengthening supply chain cooperation within BRICS. Efforts are increasing to enhance interaction between member countries in sectors such as pharmaceuticals, agriculture, and food security to reduce the risk of excessive dependence on one country or region. Simultaneously, work is being done to simplify cross-border digital services. This could create new business opportunities for Indian IT companies and digital service providers in other BRICS countries. Thus, BRICS is evolving beyond being solely a platform for goods trade; member countries aim to steer economic relations in a new direction by expanding cooperation in trade, payments, supply chains, and digital services. The main challenge for India will be how to balance the trade deficit amid growing trade volume.