India’s insistence on addressing trade deficits within BRICS highlights a key internal tension for the bloc, even as its members collectively criticize external protectionism. This internal friction complicates BRICS’s broader ambition to reshape global economic power dynamics, posing a strategic challenge for New Delhi’s foreign policy in a fragmented global economy.
Indian External Affairs Minister S. Jaishankar recently emphasized that India’s most significant trade imbalances are with fellow BRICS nations. This statement came amid the bloc’s unified criticism of US President Donald Trump’s tariffs, which have reached 50% on certain goods, impacting India and Brazil. New Delhi seeks urgent solutions for these imbalances, particularly with China, whose trade surplus with India hit $99.21 billion last fiscal year. India’s deficit with Russia also expanded due to increased oil imports, leading to record bilateral trade of $68.7 billion.
While India advocates for an economic agenda within BRICS, promoting initiatives like the New Development Bank, China and Russia increasingly prioritize a broader geopolitical front. President Xi Jinping has publicly opposed “hegemonism and protectionism,” implicitly challenging US trade practices. Despite India’s efforts to boost exports to BRICS markets, reports from institutions like Natstrat suggest it has not fully capitalized on the bloc’s import growth over the past decade.
Concurrently, India’s bilateral ties with the United States have faced challenges, including a 50% US tariff on Indian goods. Negotiations stalled partly due to India’s Russian crude purchases and alleged agricultural protectionism. However, recent positive overtures from President Trump, who called India a “special partner” and praised Prime Minister Narendra Modi, suggest potential diplomatic recalibration. Modi’s affirmation on X reinforces that underlying strategic alignments—in defense, technology, and counter-China efforts—may outweigh current trade frictions.
The resolution of these intertwined economic and geopolitical tensions, within BRICS and between India and the US, holds considerable implications for international markets and the global economic order. The BRICS bloc seeks to solidify its position as a counterweight to existing power structures, with India’s internal economic concerns critical to its strategic evolution.
Oliver brings 12 years of experience turning intimidating financial figures into crystal-clear insights. He once identified a market swing by tracking a company’s suspiciously high stapler orders. When he’s off the clock, Oliver perfects his origami… because folding paper helps him spot market folds before they happen.