BRICS Trade's Modest Global Share

Intra-BRICS merchandise trade grew sharply, from $84 billion in 2003 to $1.17 trillion in 2024. This growth outpaced global trade expansion, showing the bloc's rising economic importance. However, intra-BRICS trade is still only about 5% of total global commerce. This share is smaller compared to blocs like the European Union or ASEAN, where regional trade often makes up a larger part of their global trade. This difference suggests that while BRICS nations trade more with each other, their integration does not yet match their combined economic size, leaving much room for improvement. Emerging economies are viewed with cautious optimism, with 2026 growth forecasts depending on global stability and commodity prices.

Boosting Trade: Focus on MSMEs and Supply Chains

The 2nd BRICS Contact Group on Trade and Economic Issues (CGETI) meeting in Gandhinagar focused on practical ways to unlock this trade potential, under the theme “Building for Resilience, Innovation, Cooperation and Sustainability.” Discussions centered on strengthening the global trade system, especially important given current global trade challenges. A key focus was helping small and medium-sized businesses (MSMEs) trade internationally, aiming to boost employment by helping them access new markets and supply chains. This initiative seeks to solve a common problem, as MSMEs often face major hurdles like financing and paperwork when trading across borders. Making global supply chains stronger and more varied was also a priority, in response to recent global supply chain issues. India, currently holding the BRICS Chairship, is promoting a plan for more balanced trade and expanding opportunities in the services sector, which is key for broad economic growth. Past Indian chairmanships focused on development finance and cooperation, but achieving deeper trade integration has always been difficult.

Obstacles to Deeper BRICS Trade

Major challenges remain for deeper BRICS trade integration. Global geopolitical tensions and protectionism disrupt trade routes and raise costs, potentially undoing progress. Inflation is also a worry for many emerging economies, affecting demand and business investment. The bloc's share of global trade is still small compared to more integrated regions, showing structural issues that need more than talk to fix. Unlike blocs such as the EU with strong institutions, BRICS struggles to align different rules and trade practices among member nations. Helping MSMEs trade globally is a good goal, but it needs major investment in digital tools and simpler customs rules to work across these diverse economies. Previous BRICS efforts have often been slow to implement and struggled to achieve broad economic results for all members.

Path to Future Growth

Unlocking BRICS' trade potential requires practical plans beyond yearly meetings. Analysts are cautiously optimistic, noting that progress needs strong political commitment to implement agreements, especially on digital trade and services. It will be vital for the bloc to manage geopolitical issues and offer a stable trade and investment alternative. India's chairmanship offers a chance to push for action, but long-term success depends on ongoing commitment from all members and their ability to adapt to global changes.