**Title: India’s Exports to BRICS Surge, Led by Growth in Trade with China**
India has experienced a significant increase in its exports to the BRICS nations—comprising Brazil, Russia, India, China, and South Africa—over the first five months of the current financial year. According to data from the Indian Commerce Ministry, exports to these four core BRICS partners surged by 34%, reaching $19.9 billion from $14.9 billion during the same period last year.
The growth has been particularly driven by a notable rise in engineering and electronics exports to China, which saw an impressive 39% increase, amounting to $9.6 billion. Industry experts attribute this surge to the heightened demand stemming from the global expansion of artificial intelligence and data center infrastructure. Pankaj Mohindroo, chairman of the Indian Cellular and Electronics Association, remarked that this trend indicates a growing credibility of Indian manufacturing within one of the world's most competitive global value chains.
The normalization of bilateral relations between India and China, which had been strained following a border skirmish in 2020, has also played a role in fostering this trade growth.
Among the BRICS nations, South Africa recorded the highest growth rate in exports from India, with shipments rising by 58%. Exports to Brazil and Russia also saw increases of 13% and 11%, respectively, with shipments to Brazil totaling $3.46 billion and those to Russia reaching $2.04 billion. The trade relationship between India and Russia has been particularly robust, with trade reaching $79 billion last year, as noted by Russian Economic Development Minister Maksim Reshetnikov. Both countries have set an ambitious trade target of $100 billion by 2030.
Despite this growth, India continues to face large trade deficits with both Russia and China. In the fiscal year ending March, India imported approximately $40.8 billion worth of Russian crude oil, making it the second-largest buyer of Russian oil. Additionally, imports from China during the same period amounted to about $131.6 billion.
While the US remains India's largest export destination, tensions have emerged recently over potential sanctions targeting Russia's top oil buyers under a newly enacted law. Nevertheless, Indian exports to the US have also seen growth, rising to $42.79 billion from $40.39 billion in the same timeframe last year. This figure is more than double the combined value of exports to the four other BRICS nations.
The data on India's exports comes on the heels of a recent BRICS summit held in New Delhi, where member countries discussed initiatives aimed at enhancing trade and investment. These measures include improving customs cooperation, strengthening supply chains, advancing digital services, and facilitating cross-border payments.
In addition to the BRICS nations, India is also focusing on expanding its export markets to other significant economies such as Japan, Italy, and South Korea. The Indian government is actively working on new and pending trade agreements that are expected to open up further opportunities for Indian goods in these markets.
Overall, the increase in exports to BRICS nations reflects India's strategic efforts to diversify its trade partnerships and enhance its presence in major emerging markets. As India continues to navigate the complexities of global trade dynamics, the growth in exports to BRICS serves as a promising indicator of its expanding economic footprint.