Intra-BRICS trade accounts for just 5% of global trade: Comm secy, Pg11

Key Highlights:

• Intra-BRICS merchandise trade increased 13-fold from $84 billion in 2003 to $1.17 trillion in 2024.
• Intra-BRICS trade accounts for approximately 5% of global trade, indicating potential for growth.
• Commerce Secretary Rajesh Agrawal addressed the 2nd Meeting of the BRICS Contact Group on Trade and Economic Issues in Gandhinagar, Gujarat on May 14-15.
• India has assumed the BRICS Chairship for the fourth time, after 2012, 2016, and 2021.
• BRICS includes 11 developing countries: Brazil, China, Egypt, Ethiopia, India, Indonesia, Iran, Russia, Saudi Arabia, South Africa, and the United Arab Emirates.

Detailed Insights:

• The BRICS platform facilitates consultation and cooperation on global and regional issues, including global political and economic governance.
• Despite significant growth in intra-BRICS trade, there remains substantial untapped potential for deeper trade integration and stronger value-chain linkages.
• Discussions during the meeting included promoting more balanced trade and exploring new opportunities in the services sector.
• The expansion of BRICS to include new members like Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE aims to enhance its global influence and economic cooperation.
• India's chairmanship focuses on strengthening collaboration among BRICS nations to address shared economic and developmental challenges.

Key Concepts Involved:

• BRICS: An intergovernmental organization of leading developing economies, aiming to promote multilateral cooperation.
• Value-Chain Linkages: The interconnected activities, functions, and processes that transform raw materials into a finished product.
• Trade Integration: The process of reducing trade barriers between countries to promote increased trade and economic cooperation.