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India’s trade relationship with BRICS has expanded sharply over the last five years. In FY 2025–26, India’s total goods trade with its BRICS partners reached approximately $417.5 billion, more than double the $203.1 billion recorded in FY 2020–21. However, much of this growth has been driven by imports.
According to data cited by the Global Trade Research Initiative (GTRI), India exported around $95.7 billion worth of goods to BRICS countries in FY 2025–26, while imports stood at approximately $321.8 billion. This resulted in a trade deficit of about $226.1 billion, compared with $74.5 billion in FY 2020–21.
These numbers are important not only from a trade-policy perspective. They also show where India is buying heavily from international markets and where foreign businesses may find opportunities to build a local presence.
Table of Contents
- What is BRICS and why is it important for businesses?
- India–BRICS Trade Growth and Its Importance for Foreign Investors
- What India’s BRICS Trade Gap Means for Foreign Companies Entering India
- Manufacturing and Business Expansion Opportunities in India for Foreign Investors
- India’s BRICS Strategy: Focus on Trade, Investment and Global Supply Chains
- Why might foreign companies consider investing in and expanding in India?
- Business Structures Available for Foreign Companies Setting Up in India
- Company Formation and India Market Entry Support for Foreign Businesses
What is BRICS and why is it important for businesses?
BRICS is a group of major emerging or we can say developing economies that works to strengthen economic cooperation, trade, investment and coordination among its members.
The name originally came from Brazil, Russia, India, China and South Africa. The group has since expanded and currently includes Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, the UAE, Indonesia and Saudi Arabia.
Together, these economies represent significant global markets, manufacturing capacity, energy resources, consumers and international trade flows. For foreign businesses considering India, developments within BRICS can therefore provide useful insights into India’s trade relationships, supply chains and emerging business opportunities.
India–BRICS Trade Growth and Its Importance for Foreign Investors
BRICS currently includes 11 economies: Brazil, China, Egypt, Ethiopia, India, Indonesia, Iran, Russia, Saudi Arabia, South Africa and the UAE.
India’s trade with the group has grown quickly, but imports have increased much faster than exports. Between FY 2020–21 and FY 2025–26, India’s exports to BRICS increased by 48.8%, while imports rose by 131.8%. BRICS partners accounted for around 41.5% of India’s merchandise imports in FY 2025–26, compared with 35.2% five years earlier.
China remains India’s largest BRICS import source, while Russia has also become a major supplier, particularly due to energy purchases. The UAE, meanwhile, was India’s largest export destination within BRICS in FY 2025–26.
What India’s BRICS Trade Gap Means for Foreign Companies Entering India
A large trade deficit should not be treated as an investment incentive by itself. It does not automatically provide foreign investors with tax benefits, subsidies, or regulatory relaxations.
However, the trade pattern can provide an important market signal.
When a country imports large volumes of goods, it can indicate strong domestic demand, dependence on overseas supply, or gaps in local production. For some international companies, this can make it worthwhile to explore whether manufacturing, assembly, sourcing, distribution, technology partnerships or other operations can be developed within India.
For example, a foreign company already supplying customers in India from overseas may assess whether establishing an Indian presence could bring it closer to customers, suppliers and business partners. The commercial viability will, of course, depend on the industry, costs, regulations and the company’s long-term strategy.
Manufacturing and Business Expansion Opportunities in India for Foreign Investors
India’s high level of imports from BRICS countries can help international businesses identify sectors where substantial domestic demand already exists.
For foreign companies, establishing operations in India may create opportunities to participate more directly in the Indian market through local manufacturing, assembly, distribution, sourcing arrangements or partnerships.
This does not mean that every imported product represents an immediate investment opportunity. Businesses need to evaluate market demand, competition, operating costs, sector-specific regulations and India’s foreign investment framework before making an investment decision.
However, the growing scale of India’s international trade provides foreign companies with useful information when assessing their India market entry or business expansion strategy.
India’s BRICS Strategy: Focus on Trade, Investment and Global Supply Chains
The development is particularly relevant as India holds the BRICS Chairship in 2026. At the BRICS Trade Ministers’ Meeting held in August 2026, India highlighted the importance of balanced and expanding trade, stronger trade in services, and resilient and diversified global value chains.
Indian exporters have also called for greater market access, investment, technology partnerships and deeper participation in production and sourcing networks across BRICS economies.
For international businesses, this direction is worth watching. India is not simply looking to increase trade volumes. There is also a focus on strengthening domestic capacity, supply chains, exports and participation in global value chains.
Why might foreign companies consider investing in and expanding in India?
India’s growing trade relationships, large domestic market and increasing participation in international supply chains can make the country relevant for foreign businesses considering long-term expansion.
A foreign business already trading with India may consider whether having a local entity can support its commercial objectives. Depending on the business model, an Indian presence may help a company work more closely with customers, suppliers, employees and business partners.
However, entering India requires careful planning around the proposed business activity, ownership structure, foreign investment rules, taxation and regulatory compliance.
Business Structures Available for Foreign Companies Setting Up in India
Foreign investors can establish a presence in India through different structures depending on their proposed activities. These may include an Indian company through a wholly owned subsidiary or joint venture, an eligible LLP, or a branch, liaison or project office for permitted activities.
However, the applicable route depends on India’s FDI framework, FEMA requirements, sector-specific conditions, investment limits and approval requirements.
Choosing the appropriate business structure is therefore an important step for any foreign company planning to start or expand a business in India. To know more, click here and fill in your basic details. One of our professionals will get back to you within 24 hours.
Company Formation and India Market Entry Support for Foreign Businesses
Identifying an opportunity in India is only the beginning. Setting up the appropriate legal, tax and compliance structure is equally important.
At Mercurius, we assist foreign businesses looking to establish or expand their presence in India. Our support covers company formation in India, entity structuring, FDI and FEMA-related compliance, accounting, taxation and ongoing regulatory requirements.
Whether you are considering a wholly owned subsidiary, joint venture, LLP or another permitted business presence, our team can assist you through the setup and compliance process.
India’s growing BRICS trade demonstrates the scale of its connection with some of the world’s major emerging economies. For foreign businesses, the opportunity is not the trade deficit itself—it is the demand, supply-chain requirements and potential for deeper participation in the Indian market that the numbers can reveal.
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