A recent report indicates that China and India are spearheading a substantial expansion within the BRICS economic bloc, with intra-bloc trade witnessing remarkable growth. This surge in commerce among member nations is bolstering the case for greater economic integration and the development of alternative cross-border payment mechanisms facilitating transactions in local currencies.
BRICS' Expanding Global Economic Footprint
The BRICS group, which originally included Brazil, Russia, India, China, and South Africa, has expanded its membership to incorporate Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates. This enlarged bloc collectively accounted for approximately 25% of global merchandise exports in 2025, underscoring its growing weight in international trade.
China remains the largest economy within the grouping, with its 2025 GDP estimated at around $19.63 trillion, ranking second globally. India's economy is valued at roughly $3.92 trillion, making it the seventh-largest worldwide. Other significant economic contributors include Russia ($2.59 trillion), Brazil ($2.28 trillion), and Indonesia ($1.45 trillion). This combined economic strength provides BRICS with a broad trading presence across Asia, Europe, the Middle East, Africa, and Latin America.
Intra-Bloc Trade Gathers Pace
Trade within the BRICS bloc has intensified considerably over the past decade, with intra-BRICS exports quadrupling. China alone exported over $500 billion to other BRICS members in 2024. India, Indonesia, Russia, and the UAE also recorded substantial exports to fellow BRICS countries, with individual trade flows ranging from approximately $80 billion to $180 billion.
This growing interconnectedness through trade fosters opportunities for enhanced cooperation in supply chains, investment, and financial settlements. The report also highlights a rising dependency among several members on fellow BRICS economies for imports; for instance, Iran sources over 65% of its imports from BRICS countries, while Ethiopia's dependence is close to 45%.
Push for Alternative Payment Mechanisms
The escalating intra-BRICS commerce is also accelerating discussions about reducing reliance on the U.S. dollar for international transactions. Currently, cross-border trade often involves multiple currency conversions and correspondent banks, with the dollar frequently serving as an intermediary.
Developing a cross-border payment system that facilitates transactions in national currencies could significantly lower conversion costs and streamline settlements. Russia's trade patterns exemplify this shift; following the 2022 invasion of Ukraine and subsequent Western sanctions, its imports from BRICS countries increased sharply between 2020 and 2023.
With China and India providing significant economic momentum and trade within the bloc continuing to expand, BRICS is gaining increasing importance not only in global merchandise trade but also in shaping the future architecture of international payments.