How BRICS Drives Economic Growth and Innovation

The BRICS alliance, which includes Brazil, Russia, India, China, South Africa, and nations like Saudi Arabia, Egypt, the UAE, Ethiopia, Indonesia, and Iran, is emerging as a significant player in fostering a more equitable global landscape. With nearly 55% of the world’s population and accounting for roughly 40% of global GDP, surpassing the G7, BRICS is becoming a vital bloc for countries in the Global South to coordinate politically and diplomatically.

For India, BRICS acts as a crucial economic channel to reshape global economic governance. Indian industries leverage BRICS-driven initiatives to expand market access, enhance value chains in the region, and explore innovative financing solutions via entities like the New Development Bank. The BRICS framework aligns with India’s objectives of sustainability, digital leadership, and inclusive growth, positioning Indian enterprises as significant contributors to the bloc’s trajectory.

As BRICS transforms into a more structured and proactive platform, it is imperative for Indian industries to engage more deeply. Currently dominated by a few organizations, there is a pressing need for wider and more inclusive participation from various sectors across BRICS Business Council working groups.

Strategic Importance

India’s involvement in BRICS mechanisms provides a platform to advocate for a multipolar world and to push for reforms in global institutions like the WTO, IMF, and UN. Enhancing India’s voice in global governance translates to fairer trade rules, improved dispute resolution processes, and balanced development policies—all crucial for supporting Indian industries.

Through BRICS cooperation, there is a push for regional and inter-regional value chains, helping to reduce dependency on Western supply lines, particularly as Europe and the Americas make up around 32% of India’s imports.

As global trade patterns shift, BRICS opens new avenues for Indian exporters, granting access to developing markets beyond usual Western partners. This expanded reach is valuable for sectors like agri-tech, pharmaceuticals, automobiles, IT services, and textiles. Dialogue around sustainable food systems, rural development, and infrastructure aligns with India’s broader vision to boost its role in global value chains while fostering inclusive economic growth.

To bolster financial resilience and diminish reliance on dominant currencies, BRICS nations are deliberating on trade settlements in alternative currencies or through bilateral/multilateral escrow arrangements. This could significantly benefit India, as it looks to grow its trade footprint within BRICS, reducing transaction costs and enhancing trade reliability. Current intra-BRICS trade exceeds $600 billion, with strong potential for further expansion.

A synchronized BRICS customs system, including Mutual Recognition Agreements (MRAs) and the simplification of documentation, is essential for facilitating trade flows. This will particularly benefit Indian exporters, especially small and medium-sized enterprises (SMEs), by easing compliance and ensuring consistent access to BRICS markets.

With rising global skepticism towards the effectiveness of climate negotiations, particularly from developed nations, the BRICS coalition could consider establishing a self-sustaining climate fund and action plan. India can lead collaborative projects focused on climate resilience, green financing, and technology sharing, aligning these initiatives with its own sustainability commitments under the Panchamrit framework.

Upcoming, the BRICS Business Forum 2025, scheduled for July 5 in Rio de Janeiro, will serve as a pivotal platform for Indian industries to engage in dialogue, forge partnerships, and shape policy directions.

Published on July 3, 2025