Goyal broadens BRICS trade push through payment links

India's Commerce and Industry Minister Piyush Goyal has encouraged BRICS members and allied nations to establish payment system interconnections, boost local-currency trading, and widen markets in order to enhance economic integration among the group. Speaking at the BRICS Business Forum in New Delhi, Goyal suggested that better connectivity among national payment networks, including systems akin to India's Unified Payments Interface, could reduce cross-border commerce complexities and encourage greater usage of participating nations' own currencies.

His recommendations aligned with the economic focus of the BRICS summit, where leaders endorsed continued efforts to facilitate trade and investment settlements using local currencies and enhance interoperability between payment systems. While the proposal does not propose a unified BRICS currency, it emphasizes practical linkages between current financial infrastructures.

BRICS authorities urged the New Development Bank to broaden local-currency financing and diversify its funding sources, complementing initiatives to expedite, reduce costs, and enhance safety in cross-border transactions. Goyal noted that UPI processes over 250 billion transactions annually and is recognized in 11 countries, urging BRICS economies to consider linking their payment networks, promoting trade using each other's currencies, and expanding digital commerce in tandem with cooperation in emerging technologies.

The minister paired the payments proposal with a demand for smoother market access, stating that BRICS economies should open their markets to one another's goods, including raw materials and crucial minerals, while streamlining regulatory procedures and expediting the clearance of shipments. He argued that robust supply chains necessitate reciprocal trade rather than one-sided flows.

Goyal highlighted non-tariff barriers as a significant issue, costing more in export expenses than tariffs in 88 percent of countries, making regulatory barriers and customs delays a major concern for firms aiming to trade across BRICS markets. The push is occurring as intra-BRICS commerce has surged. Commerce Secretary Rajesh Agrawal reported that trade among BRICS nations increased from $84 billion in 2003 to nearly $1.2 trillion in 2024, highlighting the bloc's market size and the possible benefits from lowering transaction and financing expenses.

Agrawal also pointed out the global trade-finance deficit, estimated at around $2.5 trillion, and stated that BRICS should improve access to affordable working capital for exporters. The Jaipur Consensus, agreed upon by BRICS trade ministers in August, laid the groundwork for exploring a common mechanism to assist small enterprises in obtaining finance based on confirmed orders and reliable payment histories.

Trade ministers have also advanced a 2026-2030 plan for global value chains, encompassing BRICS Connect, business-to-business alliances, digital trade documentation, and potential platforms for strategic supply chains and investment promotion. These actions aim to foster more diversified and disruption-resistant trade flows. Goyal identified agriculture, pharmaceuticals, engineering, electronics, automobiles, auto components, and services as sectors with potential for intensified cooperation.

He advocated for stronger links between startup ecosystems and encouraged agricultural technology firms to collaborate on solutions for farmers and food security. Services trade was another priority, with Goyal advocating for simpler procedures for professionals to cross borders and work towards wider acceptance of professional credentials, arguing that services markets needed to become more readily accessible.

External Affairs Minister S. Jaishankar, addressing the same forum, emphasized that supply-chain connectivity, trade facilitation, and innovation had become central to BRICS cooperation. He also noted digital public infrastructure, artificial intelligence, financial technology, and advanced manufacturing as areas offering prospects, alongside issues of standards, security, and trust.

Russia's Economic Development Minister Maxim Reshetnikov separately backed stronger alternative payment methods, citing a substantial decline in the share of Russia's export settlements conducted in dollars and euros over the past three years. He also advocated for work on a proposed BRICS grain exchange and closer cooperation among special economic zones.