India Calls for Action on Trade Deficits at BRICS Summit Amid China’s Call for Unity and Cooperation

India calls for Trade Balance Within BRICS Bloc as Tariffs Escalate

New Delhi – India’s External Affairs Minister S. Jaishankar on Monday voiced concerns regarding trade deficits wiht fellow BRICS member states, as the group convened against a backdrop of escalating tariffs imposed by the United States. The discussions reflect shifting global economic dynamics and a growing assertiveness from emerging economies.

Jaishankar highlighted that India experiences its largest trade imbalances with its BRICS partners – Brazil, Russia, China, and South Africa. This call for addressing these imbalances occurred during a virtual summit where several nations expressed frustration with Washington’s trade policies. Brazil specifically accused the U.S. of “blackmail,” while China cautioned against “hegemonism, unilateralism, and protectionism.”

Rising Trade Tensions and Geopolitical Alignment

The United States has levied substantial tariffs, reaching as high as 50% on goods from Brazil and india, substantially impacting their economies. Notably, the timing of these discussions coincides with increased diplomatic engagement between India and China, exemplified by Prime Minister Narendra Modi’s recent attendance at the Shanghai Cooperation Institution summit. This move signaled a potential warming of relations between the two Asian giants, at a time when ties with Washington are strained.

china’s imports to India have seen a consistent increase, culminating in a record trade deficit of $99.21 billion for India in the fiscal year concluding March 2025. data released by Chinese customs authorities on Monday revealed a $77.7 billion trade surplus for China with India, a 16% increase year-over-year. India’s trade with Russia also surged, reaching $68.7 billion in fiscal year 2025, fueled by increased oil imports, resulting in a $59 billion deficit for India.

Did You Know? BRICS nations collectively represent over 40% of the world’s population and approximately 26% of global GDP, making it a significant economic force.

U.S.-India relations: A Complex Landscape

The U.S. has imposed a 50% tariff on Indian goods, surpassing the 30% tariff on Chinese imports, leading to a deterioration in relations. Trade negotiations between the two countries have stalled, centered around U.S. concerns regarding India’s oil purchases from Russia and accusations of protectionist practices within India’s agricultural and dairy sectors. New Delhi maintains that it is being unfairly targeted.

However, recent statements from both U.S. President Donald Trump and Prime Minister Modi suggest a potential softening of tensions. Trump stated that India and the U.S. share a “special relationship,” while Modi reciprocated these sentiments, indicating a willingness to improve bilateral ties. This shift comes despite earlier accusations and economic pressures.

Country	india’s Trade Deficit (Fiscal Year 2025)
China	$99.21 Billion
Russia	$59 Billion
Other BRICS nations	Data not Specified

Experts suggest that while India views BRICS primarily as an economic partnership, China and Russia perceive it as a more strategically focused geopolitical alliance. The divergent perspectives add complexity to the group’s overall dynamics.

Pro Tip: diversifying trade partners and fostering regional economic agreements can help nations mitigate the risks associated with reliance on single markets.

Looking Ahead: The Future of BRICS

jaishankar underscored that the BRICS bloc has a duty to review trade flows among its members, advocating for “expeditious solutions” to address existing trade deficits. The organization’s ability to navigate these challenges and foster equitable trade relationships will be pivotal in shaping its future role on the world stage.

What role will BRICS play in challenging the established global economic order? How will the relationship between India and the U.S. evolve in the face of these emerging geopolitical shifts?

The BRICS economic alliance, originally conceived as BRIC in 2001, has consistently adapted to changes in the global economic landscape. From its initial focus on investment opportunities, it has evolved to address issues of trade imbalances, geopolitical strategies, and the advocacy for a multipolar world order. The inclusion of South Africa in 2010 solidified its status as a major force in international affairs. Ongoing discussions about expanding BRICS membership to include nations like Argentina, Egypt, Ethiopia, iran, Saudi Arabia, and the United Arab Emirates highlight its growing influence and attractiveness as a platform for emerging economies. The long-term success of BRICS will depend on its ability to translate its collective economic weight into meaningful political and diplomatic influence.

Frequently Asked Questions About BRICS Trade

1. What is BRICS? BRICS is an acronym for Brazil, Russia, India, China, and South Africa – a grouping of leading emerging economies.
2. What are the main trade concerns within BRICS? India has highlighted significant trade deficits with its BRICS partners, especially China and Russia.
3. How are U.S. tariffs affecting BRICS nations? The U.S. has imposed substantial tariffs on goods from Brazil and india,impacting those economies.
4. What is India’s stance on the BRICS alliance? India views BRICS primarily as an economic initiative,focusing on trade and investment.
5. What is the meaning of the recent India-China engagement? It signals a potential warming of relations between the two nations amid broader geopolitical shifts.
6. what is the role of the US in BRICS advancement? The US tariffs and trade policies create pressure on BRICS to seek more balanced and independent trade agreements.
7. How can BRICS address trade imbalances? By reviewing trade flows, implementing fair trade practices, and fostering economic cooperation among member states.

Share your thoughts on the evolving dynamics of BRICS and the future of global trade in the comments below!

What specific actions is India requesting from China to address the $80 billion trade deficit?

The Core of the Dispute: India’s Trade Concerns

At the recent BRICS summit, India has taken a firm stance, urging fellow member nations – Brazil, Russia, China, and South Africa – to address the growing trade deficits it faces, particularly with China. This call for action highlights a persistent economic imbalance within the BRICS economic bloc. India’s concerns aren’t new; for years, New Delhi has voiced frustrations over the significant gap between its exports to China and its imports. This imbalance impacts India’s manufacturing sector and overall economic growth.

Key Issue: A substantial trade deficit with China,exceeding $80 billion in the fiscal year 2024.

Indian Demand: Increased market access for Indian goods and services within China.

Focus Areas: Pharmaceuticals, agricultural products, and IT services are key sectors India wants to see expanded access for.

China’s Response: Emphasizing BRICS Unity

While acknowledging the concerns, China has countered with a call for greater unity and cooperation within BRICS. Beijing emphasizes the importance of maintaining a cohesive front,especially in the face of global economic uncertainties and geopolitical tensions. China’s position centers around strengthening intra-BRICS trade through existing mechanisms and exploring new avenues for collaboration.

This approach reflects China’s broader strategy of positioning itself as a leader within the BRICS framework, advocating for a multipolar world order.the emphasis on unity is also seen as a way to deflect direct criticism of its trade practices.

China’s Stance: Prioritizing overall BRICS economic cooperation over individual trade disputes.

Proposed Solutions: Strengthening the BRICS Business council and exploring digital trade facilitation.

Geopolitical Context: China’s call for unity is viewed as a response to increasing Western pressure and a desire to present a united front.

The Broader BRICS Economic Landscape

The BRICS nations, representing over 40% of the world’s population and approximately 26% of global GDP, hold significant economic weight. Though, internal trade within the bloc remains relatively low compared to their trade with other regions. This is a key point of contention,as many beleive that greater intra-BRICS commerce could boost economic growth for all members.

Intra-BRICS trade Statistics (2023-2024)

| Country | Exports to BRICS | Imports from BRICS |

|—|—|—|

| Brazil | $25 Billion | $30 Billion |

| Russia | $18 Billion | $22 Billion |

| India | $15 Billion | $45 Billion |

| China | $120 Billion | $80 Billion |

| South Africa | $8 Billion | $10 Billion |

source: BRICS Business Council Report, 2024

Implications for US Leadership

As highlighted by the world Economic forum https://www.weforum.org/stories/2015/10/what-do-the-brics-mean-for-us-leadership/, the rise of BRICS presents a challenge to customary US economic leadership. India’s assertive stance on trade deficits, coupled with China’s push for a more multipolar world, signals a potential shift in the global economic order. The US is closely monitoring the BRICS dynamic, particularly its implications for trade, investment, and geopolitical influence.

US Concerns: The potential for BRICS to create option financial and trade systems that bypass US dominance.

US Strategy: Strengthening relationships with individual BRICS members while also promoting its own economic and security interests.

Impact on Dollar Dominance: Increased discussion within BRICS about reducing reliance on the US dollar for trade settlements.

Potential solutions and Future outlook

Several potential solutions are being discussed to address India’s trade deficit concerns:

1. Bilateral Trade Agreements: India and China could negotiate a more complete bilateral trade agreement that addresses specific market access issues.
2. Harmonization of Standards: Aligning product standards and regulations could facilitate smoother trade flows.
3. Investment Promotion: Encouraging greater Chinese investment in India’s manufacturing sector could help reduce the trade imbalance.
4. Digital Trade Facilitation: Leveraging digital technologies to streamline customs procedures and reduce trade barriers.

The outcome of these discussions will be crucial in shaping the future of BRICS and its role in the global economy. The summit’s emphasis on both unity and addressing individual concerns suggests a willingness to find common ground, but significant challenges remain. The next BRICS summit will be a key indicator of whether the bloc can effectively address its internal economic imbalances and present a unified front on the world stage. Key search terms include: BRICS summit 2025, India China trade, trade deficit solutions, BRICS economic cooperation