At the recent BRICS summit, India’s External Affairs Minister S. Jaishankar urged member nations to address trade imbalances, stating that India’s largest trade deficits are with BRICS partners notably China.
- The deficit with China hit a record $99.21 billion in FY ending March 2025.
- Chinese imports to India rose 16% year-over-year, with a $77.7 billion surplus as of August.
China’s Push for Bloc Unity President Xi Jinping responded with a call for BRICS solidarity, warning against “hegemonism, unilateralism, and protectionism.”
- Xi criticized global tariff regimes implicitly targeting U.S. policies, and urged BRICS to resist external economic pressure.
- He emphasized that trade wars “severely disrupt the world economy.”
U.S. Tariff Backdrop The summit unfolded amid escalating U.S. tariffs under President Trump, with levies up to 50% on Indian and Brazilian goods.
- Brazil accused the U.S. of “blackmail,” while India maintained a more measured tone.
- Modi’s recent visit to China signaled a thaw in bilateral ties, contrasting with rising U.S.–India friction.
Strategic Divergence Within BRICS
- India views BRICS primarily as an economic platform, focused on trade and development.
- China and Russia lean toward geopolitical alignment, using BRICS as a counterweight to Western influence.
(source CNBC)
—Agencies
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