China goes shopping in India as exports jump 39% and BRICS trade picks up
India's exports to the four "core" BRICS economies (China, Russia, Brazil, and South Africa) rose 34% year-on-year to USD 19.9 billion in April-August of 2026-27, up from USD 14.9 billion in the same period of 2025-26
Exports to China grew the fastest among the core group in absolute terms, rising 39% to reach USD 9.6 billion, led by mineral fuels, electronics, and aluminium
South Africa recorded the highest percentage growth at 58%, while Brazil and Russia grew 13% and 11% respectively
The combined share of these four economies in India's total exports rose from 8.1% to 9.2% over the period
Exports to non-BRICS markets including Japan, Italy, and South Korea also posted strong growth in the same period
BRICS — Origin, Expansion, and India's Role
BRICS began as an informal grouping of Brazil, Russia, India, and China (the "BRIC" acronym coined by Goldman Sachs economist Jim O'Neill in 2001), holding its first formal summit in 2009; South Africa joined in 2010, making it "BRICS." In January 2024, the bloc expanded to admit Egypt, Ethiopia, Iran, and the UAE as full members (Saudi Arabia was invited but has not completed formal accession), roughly doubling its membership and economic weight.
Key Details
- First BRIC summit: Yekaterinburg, Russia, 2009; South Africa admitted 2010
- January 2024 expansion: Egypt, Ethiopia, Iran, UAE joined as full members
- Expanded BRICS represents roughly 46% of world population and about 36% of global GDP (PPP terms)
- BRICS operates without a binding charter or permanent secretariat; India hosted/chaired BRICS activities in past cycles under a rotating presidency model
- New Development Bank (NDB), headquartered in Shanghai, is BRICS's principal joint financial institution, established in 2015
The article's reference to "core BRICS" (the four founding-plus-South-Africa economies excluding the 2024 entrants) reflects how trade data tracking distinguishes original BRICS members from the expanded bloc, relevant when interpreting India's stated trade diversification strategy toward BRICS partners.
India-China Trade — Complementary Trade Amid Strategic Tensions
Despite unresolved boundary tensions along the Line of Actual Control (LAC) since 2020, India-China bilateral trade has remained economically significant, with China a major source of India's imports (electronics components, active pharmaceutical ingredients, machinery) and, per this data, an increasingly important export destination as well. This reflects the broader GS2/GS3 theme of economic interdependence persisting alongside strategic competition.
Key Details
- India's exports to China in April-August 2026-27: USD 9.6 billion (39% year-on-year growth)
- Key export sectors driving growth: mineral fuels, electronics, aluminium
- India runs a substantial and long-standing trade deficit with China overall, driven by high machinery and electronics imports
- Institutional mechanism for trade friction: WTO dispute settlement and bilateral trade dialogues; India has also used trade remedy measures (anti-dumping duties) on specific Chinese goods under the Customs Tariff Act, 1975
A sharp rise in exports to China, even amid broader strategic caution, illustrates how bilateral trade flows can move independently of diplomatic and security tensions — a distinction useful for GS2 mains answers on India-China relations.
India's Export Diversification Strategy and Trade Promotion Framework
India's Foreign Trade Policy (FTP) 2023, administered by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry, aims to diversify export markets and products, reduce dependence on any single destination, and support exporters through schemes like the Remission of Duties and Taxes on Exported Products (RoDTEP).
Key Details
- Foreign Trade Policy 2023: replaced the FTP 2015-20; introduced a dynamic, industry-hub approach (e.g., "Towns of Export Excellence")
- RoDTEP scheme: refunds embedded taxes/duties not otherwise rebated (e.g., VAT on fuel, mandi tax), replacing the earlier MEIS scheme found WTO-inconsistent
- Nodal body: DGFT, under the Ministry of Commerce and Industry
- Rising export shares to BRICS, Japan, Italy, and South Korea in this data reflect market diversification consistent with the FTP's stated objective of reducing over-reliance on traditional markets (US, EU)
The broad-based rise in India's exports across BRICS and other markets simultaneously (not just China) supports the policy narrative of diversification, a recurring GS3 theme on strengthening India's external trade resilience.
- India's exports to core BRICS (China, Russia, Brazil, South Africa), April-August 2026-27: USD 19.9 billion (up 34% from USD 14.9 billion a year earlier)
- Exports to China: USD 9.6 billion (39% growth) — largest absolute contributor
- Exports to South Africa: 58% growth (highest percentage growth among core BRICS)
- Exports to Brazil: 13% growth; Exports to Russia: 11% growth
- Core BRICS share of India's total exports: rose from 8.1% to 9.2%
- BRICS expanded in January 2024 to include Egypt, Ethiopia, Iran, and the UAE, roughly doubling its membership