India's exports to its core BRICS partners have jumped 34% in the first five months of the current financial year, driven largely by growth in engineering and electronics exports to China. According to Indian Commerce Ministry data, shipments to China, Russia, Brazil, and South Africa rose to $19.9 billion in the April-August period, up from $14.9 billion a year ago. This growth comes as New Delhi faces renewed trade pressure from Washington.
Indian exports to China rose 39% to $9.6 billion, with industry executives attributing some of the increase to demand from the global build-out of artificial intelligence and data centers. Pankaj Mohindroo, chairman of the Indian Cellular and Electronics Association, noted that this growth shows Indian manufacturing is beginning to win credibility in one of the world's most competitive global value chains.
South Africa recorded the fastest growth rate, with shipments climbing 58%, while exports to Brazil and Russia increased 13% and 11%, respectively. Shipments to Brazil stood at $3.46 billion, and those to Russia at $2.04 billion. This growth in exports to BRICS nations comes as India and China have been rapidly normalizing bilateral ties, which had largely frozen following a border skirmish in 2020.
India and Russia have a trade target of $100 billion to be achieved by 2030, with India-Russia trade rising to $79 billion last year. However, India still runs large trade deficits with Russia and China. India, the second-largest buyer of Russian crude, imported about $40.8 billion of Russian oil in the year ended March, while importing about $131.6 billion worth of goods from China in the same period.
Despite the growth in exports to BRICS nations, the US remains India's largest export destination. Indian goods exports to the US reached $42.79 billion in April-August, up from $40.39 billion a year earlier, more than double the combined value of shipments to the four other BRICS members. This comes as tensions have risen recently over possible sanctions on Russia's top oil buyers under a recently passed law.
The growth in India's exports to BRICS nations is part of a broader trend of India seeking to diversify its export markets. Shipments to all BRICS members rose 13% year-on-year to $34.5 billion in April-July, compared with $30.5 billion in the same period last year. India is also seeking to widen access for Indian goods through new and pending trade agreements with other major markets like Japan, Italy, and South Korea.
The recent growth in India's exports to BRICS nations comes after BRICS leaders met in New Delhi, where members advanced measures aimed at improving trade and investment, including customs cooperation, supply chains, digital services, and cross-border payments. These efforts are expected to further boost India's exports to the region in the coming months.
Key points
- India's exports to BRICS nations surge 34% in April-August.
- China drives growth with 39% increase in Indian exports.
- India and Russia aim for $100 billion in trade by 2030.
