India Must Boost Exports To BRICS To Tackle Trade Deficit: Shastri

(MENAFN- AsiaNet News)

India needs to strengthen exports to BRICS economies as high energy imports have left the country running a trade deficit with most members of the grouping, BRICS Chamber of Commerce and Industry Chairman Sameep Shastri said.

“Currently, India is in a trade deficit with most of the BRICS nations because we are primarily importing energy sources. With our consumption very high and a population of 1.4 billion, we need to make sure that every household has LPG and every car is running on petrol,” Shastri told ANI.

Strengthening Exports and Manufacturing

He said India was making progress in manufacturing and improving product standards, which could support exports.

“So we were all about quantity earlier; now it is about quality and quantity, and our standards are being approved and accepted even in pharmaceuticals,” he said.

Shastri said greater focus was needed on exports, complementarities between BRICS economies and technology sharing.

“We do have to focus more on the export part. We do have to focus on how we complement each other further, and technology sharing is something which really needs to be done,” he said.

De-dollarisation and Digital Payments

On de-dollarisation, Shastri backed greater use of local currencies and digital payments in trade, arguing that businesses face additional conversion and transaction costs when dealing through the US dollar.

“I don't see any other solution rather than dealing with local currency and with digital transactions taking place,” he said, while pointing to India's Unified Payments Interface as an example of digital payment infrastructure.

Referring to the United States, Shastri said,“de dollarization started when America invested in crypto themselves they de dollarized themselves rather than blaming it on other countries.”

Logistical Challenges and New Routes

He also flagged logistical challenges to deeper intra-BRICS trade because member countries are spread across different regions.

“Logistical challenges are immense because of the geopolitical situation and geographical reasons,” Shastri said, adding that India, China and Russia were exploring new routes, including the Arctic route.

Progress on Trade Agreements

On trade agreements within BRICS, Shastri expressed hope for progress involving India and Russia.

“We are hoping a Russian trade deal to come forward, which is one of the first amongst the BRICS nations,” he said.

India is currently negotiating a free trade agreement with the Eurasian Economic Union, of which Russia is a member.

India and Russia have also set a target of taking bilateral trade above USD 100 billion by 2030, while seeking to increase Indian exports and make trade more balanced.

During India's BRICS chairship this year, member countries have also discussed expanding trade and building more resilient and diversified supply chains.

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

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