PM Modi highlights trade barriers, sea route disruptions at BRICS Business Forum

Published 2026-09-12 · Updated 2026-09-12 · 3 min · 502 words

UPSC CSE Context

Why in News

PM Modi highlighted rising trade barriers and sea route disruptions at the BRICS Business Forum during India's 2026 BRICS presidency.

Syllabus Connection

International Relations, Global Economic Governance, Trade Policy, Maritime Security.

Exam Relevance

Useful for questions on BRICS, de-dollarisation, trade barriers, and India's multilateral diplomacy.

Core Issue

BRICS leaders discuss trade barriers, sea route security, and de-dollarisation.

Key Development

India pushes cooperation networks and freedom of navigation amid global economic shifts.

Stakeholders

• Russia
• Iran
• BRICS members
• Global South

Static Knowledge

High-Value Background

• BRICS represents 50% of world population, 40% of global GDP, and over 25% of global trade.
• India has signed FTAs with around 40 countries since 2014.

Exam Linkage

• Relevant for GS Paper 2: Bilateral, regional and global groupings involving India.

Concepts in Context

• De-dollarisation: reducing dependence on the US dollar in international trade and finance.
• Secondary sanctions: penalties on third parties for dealing with sanctioned entities.

Institutions and Mechanisms

• BRICS Business Forum: platform for business leaders to discuss economic cooperation.
• BRICS Incubator Network, MSME Portal, Start-Up Innovation Fund: initiatives under India's presidency.

Dynamic Analysis

International Relations

• BRICS is positioning itself as a counterweight to Western-dominated economic order.
• India balances its strategic autonomy by engaging BRICS while maintaining ties with the West.
• Freedom of navigation emphasis aligns with India's Indo-Pacific strategy and maritime security concerns.

Economy

• Rising trade barriers globally contrast with India's push for FTAs and economic bridges.
• BRICS economic growth outpaces world average, shifting global economic power.
• Local currency trade could reduce transaction costs and dollar dependence but faces convertibility challenges.
• Initiatives like MSME Portal aim to integrate smaller economies into BRICS networks.

Security

• Sea lane security is critical for global trade; disruptions affect energy and goods supply.
• Secondary sanctions create compliance dilemmas for countries like India.

Governance

• BRICS cooperation networks in agriculture, health, skills, and smart grids reflect sectoral governance.
• India's presidency focuses on practical cooperation rather than just political statements.
• Need for institutional mechanisms to implement BRICS initiatives effectively.
• Balancing national interests with collective BRICS goals remains a governance challenge.

Prelims Takeaways

• BRICS countries represent 50% of world population and 40% of global GDP.

Mains Value Addition

Arguments

• BRICS offers a platform for emerging economies to voice concerns about global economic governance.
• De-dollarisation efforts reflect a desire for a multipolar financial system.
• Trade barriers and supply chain disruptions necessitate diversified economic partnerships.

Data Points

• BRICS GDP grew 4.5 times compared to global GDP growth of 2.5 times over the years.

Counterpoints

• BRICS lacks a unified agenda due to divergent national interests.
• Local currency trade faces practical hurdles like exchange rate volatility and limited convertibility.
• Secondary sanctions threat may deter countries from deeper BRICS engagement.

Way Forward

• Strengthen BRICS institutional mechanisms for trade facilitation and dispute resolution.
• Promote pilot projects for local currency trade settlements among willing members.
• Enhance maritime security cooperation through joint exercises and information sharing.
• Expand sectoral cooperation networks to include digital economy and climate finance.
• Balance BRICS engagement with other multilateral forums to avoid bloc politics.

Primary/reference source: Economy