UNCTAD report Two decades of intra-BRICS trade: Trends, patterns and policies reveals that intra-BRICS trade grew 13-fold over two decades, reaching $1.17 trillion in 2024. The BRICS members collectively accounted for 27% of global GDP (68% of global South’s GDP).
Despite this rapid expansion, the bloc's internal trade represents only 5% of world trade and 20% of South-South trade, signalling significant untapped potential hindered by economic heterogeneity and the lack of a formal trade agreement. The analysis identifies a structural reliance on primary product exports among most members, contrasted by China's successful transition to high-tech manufacturing.
To unlock further growth, UNCTAD proposes a "Trade+" Strategy, which advocates for a BRICS-wide trade agreement and the integration of trade with macro-finance, digital transition, and industrial policy to move beyond informal cooperation.
Key Pillars of the Intra-BRICS "Trade+" Strategy
Comprehensive Trade Agreement: Initiating a formal bloc-wide framework to reduce non-tariff barriers and promote industrial diversification.
Policy Workstream Reform: Introducing a "Troika" approach for technical discussions and voluntary dispute settlement procedures to ensure consistent policy action.
Cross-Sectoral Integration: Establishing task forces to link trade outcomes with green transition, food security, and digital finance standards.
Institutional Capacity Building: Creating a centralized knowledge-sharing hub to address gaps in regulatory and research capacities among newer members.
Tariff Rationalization: Continuing the downward trend of bilateral tariffs, which have dropped from peaks exceeding 14% in 2003 to a current range of 2-11%.
Value Chain Development: Shifting the trade mix from primary commodities toward medium- and high-tech manufactured goods through shared industrial clusters.
Deep Dive: India’s Role and Trade Evolution
The report recognises India as one of the fastest-growing members of the bloc, with an average annual growth rate of 6.4% and a significant expansion in its BRICS-facing trade portfolio.
Trade Scale and Dependency: India’s exports to BRICS members grew from $10.5 billion in 2003 to $81.7 billion in 2024. While its exports are relatively diversified across global markets, its imports are heavily concentrated within the bloc, with BRICS members providing 42% of India’s total imports by 2024.
Industrial Upgrading: India shows moderate progress in export diversification; medium- and high-tech exports (pharmaceuticals, automotive, electronics) rose from 26% to 43% of its intra-BRICS trade share. Simultaneously, the share of labor-intensive and primary products declined from 59% to 49%.
Tariff Transformation: India has undertaken a massive mechanical reduction in tariffs. In 2003, average tariffs on BRICS imports exceeded 14% (peaking at 66% for Indonesia); by 2021, these were rationalized to a 2-11% range.
Bilateral Corridors: The India-China trade corridor is one of the largest within the bloc, with Chinese exports to India reaching $120 billion in 2024, alongside significant growth in the India-UAE corridor.
Policy Divergence: The report notes that India’s stance on initiatives like the RCEP and Investment Facilitation for Development (IFD) differs from other members, reflecting its unique developmental priorities and institutional expectations.
What is the "Trade+" Strategy? The Trade+ Strategy is an operational framework designed to move the BRICS bloc from informal diplomatic cooperation to an integrated economic partnership. It involves a "Trade Plus" approach where traditional tariff reductions are mechanically linked with broader policy areas like industrial development and digital infrastructure. By integrating these diverse workstreams, the strategy seeks to create a predictable environment for long-term investment and high-tech trade, bypassing the institutional constraints of a rotating presidency and the absence of a permanent secretariat.
Policy Relevance: India’s Emerging Market Leadership
Operationalizing Global Value Chains: India’s growth in high-tech exports acts as a primary mechanic for the Ministry of Commerce to further integrate the "Make in India" initiative into BRICS value chains, particularly in automotive and electronics.
Internalizing Import Diversification: The heavy reliance on BRICS for 42% of imports serves as a functional prompt for the Department for Promotion of Industry and Internal Trade (DPIIT) to evaluate supply chain vulnerabilities and promote domestic manufacturing.
Bypassing Institutional Gaps: The proposed BRICS-wide trade agreement provides a blueprint for India to utilize its Global System of Trade Preferences (GSTP) membership to negotiate better market access for its services sector.
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