India’s trade with BRICS countries is booming.

Table of Contents

But there is a huge imbalance.

India imported $321.8 billion from BRICS countries in FY2025-26—but exported only $95.7 billion.

The result:

A $226.1 billion trade deficit.

The gap has more than tripled from $74.5 billion in FY2020-21, according to analysis by the Global Trade Research Initiative (GTRI).

For India, this is a serious trade challenge.

But for manufacturers, exporters and MSMEs, there is another way to look at it:

Where are the business opportunities hidden inside this massive trade gap?

📊 India’s BRICS Trade at a Glance

India’s Trade With BRICS	FY2025-26
🇮🇳 Exports	$95.7 billion
📦 Imports	$321.8 billion
🔴 Trade Deficit	$226.1 billion

The big story is simple:

India’s imports from BRICS have grown much faster than its exports.

China, the UAE and Russia are the major drivers of the imbalance.

Why Is the Deficit So Large?

🇨🇳 China: Manufacturing Dependence

China remains a major source of industrial products, technology, machinery and manufacturing inputs for India.

For Indian businesses, this highlights a long-term challenge:

Can India build stronger domestic supply chains in areas where it can genuinely compete?

🇷🇺 Russia: The Energy Factor

India’s purchases from Russia have increased sharply, particularly because of energy imports.

Energy is essential to India’s economy and cannot simply be replaced overnight.

The bigger challenge is:

How can India sell more products to Russia to make trade more balanced?

India is also continuing efforts to expand trade engagement with Russia and the Eurasian Economic Union.

🇦🇪 UAE: More Than Just a Market

The UAE is one of India’s most important commercial partners.

But it is also something more valuable:

A gateway to global trade.

Indian companies can use the UAE’s business ecosystem to explore opportunities across the Middle East, Africa and international markets.

Is a $226 Billion Trade Deficit Automatically Bad?

No.

India needs imports such as:

Energy
Raw materials
Advanced machinery
Industrial components
Technology

The goal should not be to stop importing.

The smarter strategy is:

Import what India needs. Build what India can competitively produce. Export more to the world.

That is where MSMEs and manufacturers come into the picture.

The $226 Billion Opportunity Question

India imported $321.8 billion worth of goods from BRICS countries.

Obviously, Indian businesses cannot replace everything.

Nor should they try.

But imagine this:

What if Indian companies could competitively manufacture even a small share of suitable products currently being imported?

At the same time, Indian exporters have another opportunity:

Find products that BRICS markets are already buying—and see whether India can supply them competitively.

That is where data becomes more useful than guesswork.

How to Find BRICS Business Opportunities Using Government Trade Data

This is probably the most practical part of the story.

Instead of reading headlines and guessing which products may have export potential, businesses can study actual trade data.

India’s Department of Commerce provides trade statistics through TradeStat.

Here’s a simple way to use the data.

Step 1: Choose a Country

For example:

UAE
Russia
Brazil
South Africa
Egypt

Step 2: Check What India Already Exports

Look at India’s exports to that market.

Ask:

Which Indian product categories are already selling successfully there?

Existing exports can provide clues about established demand.

Step 3: Study What the Country Imports

Look for large and growing import categories.

Then ask:

🔍 Can my business supply this product?

🔍 Does India already manufacture it competitively?

🔍 Who are the major suppliers?

🔍 Is demand growing?

Step 4: Check the Competition

This is where trade intelligence becomes extremely useful.

Government trade data can show the bigger picture.

But before investing money, businesses should also research:

Active overseas buyers
Existing suppliers
Shipment activity
Competitor markets
Product demand

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Three Big Opportunity Areas for Indian Businesses

1️⃣ Import Substitution

Some of India’s large import categories may create opportunities for Indian manufacturers—but only where they can compete on:

Cost
Quality
Technology
Scale
Reliability

Areas worth researching include:

Industrial components
Engineering goods
Machinery parts
Electrical equipment
Electronics supply chains
Chemicals
Auto components
Renewable-energy supply chains

⚠️ Important: A large import number does not automatically mean a profitable manufacturing opportunity.

Always check the economics before investing.

2️⃣ New Export Markets

India exported only $95.7 billion to BRICS countries during FY2025-26.

That leaves significant room to expand exports.

Indian businesses already have strengths in areas such as:

Pharmaceuticals
Engineering goods
Chemicals
Textiles
Processed food
Automobiles and components
Technology and business services

The trick is not to export everything everywhere.

Find the right product for the right market.

3️⃣ Supply Chain Opportunities

The biggest opportunity may sometimes be invisible.

Instead of selling directly to consumers, an MSME could become a supplier to:

Manufacturers
Distributors
International brands
Regional supply chains

A small Indian company supplying one specialised component can sometimes build a more sustainable export business than a company trying to sell dozens of unrelated products.

Which BRICS Markets Should MSMEs Watch?

🇦🇪 UAE — Gateway Opportunity

Worth exploring for:

Consumer products
Food
Pharmaceuticals
Engineering goods
Textiles

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🇷🇺 Russia — A Market India Wants to Balance

India-Russia trade has grown strongly, but imports—especially energy—dominate the relationship.

Potential sectors worth researching:

Pharmaceuticals
Food products
Engineering goods
Machinery-related products

India is also exploring deeper trade engagement with the Eurasian Economic Union.

🇧🇷 Brazil — A Major Emerging Market

Brazil offers access to one of the world’s largest emerging economies.

Indian exporters can research opportunities in:

Pharmaceuticals
Chemicals
Engineering products
Automotive products

🇿🇦 South Africa — A Gateway Into Africa

South Africa remains an important business hub for companies looking towards African markets.

Potential sectors to research include:

Pharmaceuticals
Machinery
Engineering goods
Automotive components

🇪🇬 Egypt — Strategic Location, Growing Potential

Egypt’s location makes it strategically interesting for companies targeting North Africa and nearby markets.

Potential areas include:

Food products
Pharmaceuticals
Engineering goods
Consumer products

The BRICS Opportunity Matrix

Opportunity	What MSMEs Should Do
🏭 Import substitution	Identify products India can competitively manufacture
📦 Export markets	Find countries with proven demand
⚙️ Supply chains	Become a supplier to larger companies
🔍 Trade intelligence	Research buyers, competitors and shipments
💰 Trade finance	Prepare working capital before accepting orders

What Should an Indian MSME Do Now?

1. Find a Product

Choose a product where you have a genuine advantage.

Don’t chase a trend simply because imports are high.

2. Find a Market

Study:

Demand
Competition
Pricing
Regulations
Certifications

3. Find Real Buyers

Google can help you discover companies.

But it doesn’t always tell you whether they are actively importing your product.

Shipment and trade intelligence can help businesses research active buyers and suppliers.

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4. Calculate Your Export Profit

Getting an export order is exciting.

But an order is useful only if it makes money.

Before quoting a buyer, calculate:

Product cost
Packaging
Freight
Insurance
Bank charges
Documentation costs
Commission
Currency risk

📊 Don’t guess your export margin.

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5. Start Small

Test the market.

A smaller shipment can teach you about:

Actual demand
Logistics
Documentation
Pricing
Buyer behaviour

Then scale intelligently.

Can BRICS Make Cross-Border Payments Easier?

India is pushing for greater interoperability between BRICS payment systems, including proposals involving links between central bank digital currencies.

The objective is to make international transactions easier and faster.

But major political and technical hurdles remain.

For now, exporters should focus on:

Reliable banking channels
Secure payment terms
Buyer verification
Currency-risk management

What India Needs to Do

A $226 billion trade gap cannot be solved with one policy.

India needs:

🔹 More competitive manufacturing

🔹 Better technology access

🔹 Stronger domestic supply chains

🔹 Better market access

🔹 More MSME trade finance

🔹 Greater participation in global value chains

The ultimate objective is simple:

Buy globally when necessary. Build competitively in India. Sell more to the world.

The Bottom Line

India’s $226.1 billion BRICS trade deficit is a warning sign.

India’s trade relationship with BRICS is expanding—but imports are growing far faster than exports.

But inside that imbalance lies opportunity.

For manufacturers:

Find products India can competitively make.

For exporters:

Find BRICS markets where India can sell more.

For MSMEs:

Use data before making decisions.

Don’t chase every country.

Don’t chase every product.

Find one good product. Find a market with real demand. Find genuine buyers. Calculate your profit.

That is how a small business can turn a massive global trade story into a practical business opportunity.

📌 Related BusinessZindagi Resources

📊 Key Numbers

Indicator	FY2025-26
India’s BRICS exports	$95.7 billion
India’s BRICS imports	$321.8 billion
India’s BRICS trade deficit	$226.1 billion

🤖 AI Transparency

This article was researched and drafted with the assistance of artificial intelligence and then reviewed and edited by the BusinessZindagi Editorial Team.

AI was used to help analyse information, organise the article and simplify complex trade concepts. All important facts, figures and claims should be checked against the cited sources before publication.

📝 Editorial Note

BusinessZindagi focuses on practical business information for Indian entrepreneurs, MSMEs, exporters and importers.

This article is intended for information and educational purposes. Trade opportunities, product demand, regulations, prices, tariffs and market conditions can change.

Businesses should conduct their own market research, financial analysis and professional due diligence before making investment, manufacturing or export decisions.

💼 Affiliate Disclosure

Some links in this article are affiliate links.

This means BusinessZindagi may earn a commission if you purchase or subscribe through an affiliate link, at no additional cost to you.

Our affiliate recommendations are intended to highlight tools that may be useful for exporters and businesses researching international markets.

🌍 Looking for international buyers and trade intelligence?

👉 Explore Volza for buyer, supplier and shipment research

📚 Sources & References

India’s BRICS Trade Deficit — GTRI analysis reported by The Economic Times

The BRICS Trade Boom Has a $226 Billion Hole for India

BRICS Summit and latest developments

Reuters: India Hosts BRICS Summit

BRICS cross-border payments proposal

Reuters: India Pushes BRICS Digital Currency Link

India-Russia and EAEU trade discussions

India’s EAEU Trade Discussions

Official Indian trade data

TradeStat — Department of Commerce, Government of India

Trade figures are based on the latest available FY2025-26 reporting and may be revised when official trade statistics are updated.