Intra - BRICS trade & its implications for India

Intra - BRICS trade & its implications for India

The significance of international trade was highlighted by the leaders of the BRICS group of countries as they met for their Sixth Summit in Fortaleza, Brazil in July, 2014. The BRICS group, made up of Brazil, Russia, India, China and South Africa, came together calling for an Action Plan for advancing its work on trade and investment.

With a cumulative global trade of 20 per cent and generating more than 40 per cent of global economic growth, the BRICS countries, and India specifically as a prominent global leader in trade, are poised to strengthen their relationship through intra-BRICS trade.

This Discussion Paper, using a series of a nalytical tools, illustrates the trends in trade and competitiveness between the BRICS countries as well as its implications for India. Tellingly, the results indicate a complementarity in export and import products with low levels of competition, which can provide opportunities for enhanced intra-BRICS trade.

A greater openness between the BRICS countries has the potential to yield gains for all five of the member countries. Specifically for India, which showed a comparative advantage in certain products, it should re-orient its Focused Market and Focused Product initiatives in light of its "new trade policy" , which is expected to be announced in August 2014, to ensure greater and closer trade with its fellow BRICS members.

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