India BRICS Trade Deficit
India’s trade with BRICS countries is booming.
But there is a huge imbalance.
The result:
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 Trade With BRICS | FY2025-26 |
|---|---|
| 🇮🇳 Exports | $95.7 billion |
| 📦 Imports | $321.8 billion |
| 🔴 Trade Deficit | $226.1 billion |
The big story is simple:
China, the UAE and Russia are the major drivers of the imbalance.
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?
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:
India is also continuing efforts to expand trade engagement with Russia and the Eurasian Economic Union.
The UAE is one of India’s most important commercial partners.
But it is also something more valuable:
Indian companies can use the UAE’s business ecosystem to explore opportunities across the Middle East, Africa and international markets.
No.
India needs imports such as:
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.
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:
That is where data becomes more useful than guesswork.
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.
For example:
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.
Look for large and growing import categories.
Then ask:
This is where trade intelligence becomes extremely useful.
Government trade data can show the bigger picture.
But before investing money, businesses should also research:
Instead of sending emails to hundreds of random companies, you can research businesses using import-export shipment intelligence.
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Some of India’s large import categories may create opportunities for Indian manufacturers—but only where they can compete on:
Areas worth researching include:
⚠️ Important: A large import number does not automatically mean a profitable manufacturing opportunity.
Always check the economics before investing.
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:
The trick is not to export everything everywhere.
Find the right product for the right market.
The biggest opportunity may sometimes be invisible.
Instead of selling directly to consumers, an MSME could become a supplier to:
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.
Worth exploring for:
India-Russia trade has grown strongly, but imports—especially energy—dominate the relationship.
Potential sectors worth researching:
India is also exploring deeper trade engagement with the Eurasian Economic Union.
Brazil offers access to one of the world’s largest emerging economies.
Indian exporters can research opportunities in:
South Africa remains an important business hub for companies looking towards African markets.
Potential sectors to research include:
Egypt’s location makes it strategically interesting for companies targeting North Africa and nearby markets.
Potential areas include:
| 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 |
Choose a product where you have a genuine advantage.
Don’t chase a trend simply because imports are high.
Study:
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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Getting an export order is exciting.
But an order is useful only if it makes money.
Before quoting a buyer, calculate:
👉 Calculate your export profit with BusinessZindagi’s Export Profit Calculator
Test the market.
A smaller shipment can teach you about:
Then scale intelligently.
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:
A $226 billion trade gap cannot be solved with one policy.
India needs:
The ultimate objective is simple:
Buy globally when necessary. Build competitively in India. Sell more to the world.
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.
Find products India can competitively make.
Find BRICS markets where India can sell more.
Use data before making decisions.
Don’t chase every country.
Don’t chase every product.
That is how a small business can turn a massive global trade story into a practical business opportunity.
👉 DGFT Source from India: How Indian Exporters Can Find Foreign Buyers
👉 How to Find International Buyers Without Visiting Trade Fairs
👉 Export Profit Calculator Pro
👉 First Export Order Guide: Proforma Invoice, CHA, Shipping Bill and Port Choice
👉 DGFT Official Website: How to Identify Fake Websites and Avoid Export Scams
| 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 |
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.
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.
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.
👉 Explore Volza for buyer, supplier and shipment research
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.
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