India needs export push to cut BRICS trade gap

New Delhi [India]: India must bolster its exports to BRICS nations, according to Sameep Shastri, Chairman of the BRICS Chamber of Commerce and Industry. The country is running a trade deficit with most of its BRICS counterparts due to high energy imports. With a population of 1.4 billion and high energy consumption, Shastri emphasized the need to ensure every household has LPG and every vehicle runs on petrol.

While India is making strides in manufacturing and improving product standards, Shastri stressed the importance of transitioning from quantity to quality and quantity in exports. The focus now should be on both enhancing exports and leveraging complementarities between BRICS economies, particularly in technology sharing, he added.

Shastri advocated for greater use of local currencies and digital payments in trade to reduce conversion and transaction costs. He pointed to India's Unified Payments Interface as an example of a robust digital payment infrastructure. Regarding de-dollarization, Shastri supported the use of local currencies and digital transactions, comparing de-dollarization by the United States to their investment in crypto.

Logistical challenges to deeper intra-BRICS trade, due to differing geopolitical situations and geographical dispersion, were also highlighted by Shastri. He noted that India, China, and Russia were exploring new routes, including the Arctic route. Shastri expressed optimism about progress in trade agreements involving India and Russia, with the latter aiming to increase bilateral trade to over USD 100 billion by 2030.

During India's BRICS chairmanship this year, discussions around expanding trade and creating more resilient supply chains were also high on the agenda.