The Trade Picture: Big Numbers, Deeper Questions
On the surface, the trade statistics for the BRICS nations are impressive. Merchandise trade among members surged from just $84 billion in 2003 to a staggering $1.17 trillion by 2024, a thirteen-fold increase. This rate of growth significantly outpaces
the expansion of global trade overall. The bloc now accounts for roughly 24% of the world's total merchandise exports. However, digging deeper reveals a more nuanced reality. Despite the bloc's massive collective GDP — representing about 40% of the global economy on a purchasing power parity basis — intra-BRICS trade still only accounts for about 5% of total global trade. This suggests that while members are trading more with each other, their primary commercial relationships often remain with countries outside the bloc. A major factor in this is the dominant role of China, which serves as the central hub for both exports and imports within the group, often tying trade to its vast global supply chains.
The Investment Gap
A true economic bloc is built not just on trade, but on deep, cross-border investment. This is where the BRICS ambition faces a significant hurdle. While the member nations have become major destinations for global foreign direct investment (FDI), translating that into more investment among themselves has proven challenging. Analysts point to the absence of strong institutional, telecommunications, and business links, especially among smaller and medium-sized industries, as a key limiting factor. For many businesses, setting up shop in another BRICS nation is not yet as seamless as operating within more established economic unions. For India, the picture is particularly complex; its trade deficit with the BRICS bloc more than tripled in recent years, largely driven by a surge in imports from China and Russia. This highlights an imbalance where India is a growing market for BRICS goods but isn't yet seeing a comparable rise in its own exports to the bloc.
De-Dollarisation: Evolution, Not Revolution
Perhaps the most talked-about BRICS initiative is the push to reduce reliance on the US dollar. This 'de-dollarisation' effort is not about creating a common BRICS currency, an idea that is widely seen as impractical due to the vast economic differences between members and which India, the 2026 chair, has publicly opposed. Instead, the focus is on a more pragmatic goal: increasing the use of national currencies for bilateral trade. This trend has been accelerated by geopolitical tensions and Western sanctions, which have pushed countries like Russia to seek alternatives. Some reports suggest that over two-thirds of intra-BRICS trade was conducted in local currencies in 2025. However, the US dollar's global dominance remains secure for now. It is still on one side of nearly 90% of all foreign exchange trades, and its share of global reserves remains above 57%, while the Chinese renminbi's share is around 2%.
The New Development Bank's Practical Role
The most concrete achievement of BRICS cooperation may be the New Development Bank (NDB). Far from being just a political statement, the NDB has become a functioning financial institution. As of early 2026, it had approved nearly $43 billion for 139 projects across member nations. Its mandate focuses on financing infrastructure and sustainable development, with a portfolio that includes projects in clean energy, water and sanitation, and digital infrastructure. By funding projects in local currencies, the NDB also plays a direct role in the bloc's goal of reducing dollar dependence. It represents a tangible, brick-and-mortar outcome of the group's ambitions, offering an alternative source of development finance to traditional Western-led institutions.
The Road Ahead: Pragmatism Over Politics
The evidence in 2026 shows that the BRICS trade and investment push is real, but it is a slow, methodical process rather than a sudden shift in the global order. The key challenge is not a lack of economic weight, but the difficulty of translating that collective power into deeper, institutionalised integration. The bloc's diversity, which is a source of strength, also creates complexity due to differing political systems and economic priorities, such as the strategic rivalry between India and China. Under India's 2026 presidency, the strategy has been to focus on practical goals: linking national payment systems, cooperating on digital public infrastructure, and finding common ground on energy and supply chains. This approach acknowledges that consensus on everything is not necessary for progress to be made.
