India-BRICS Trade Deficit Reaches $226.1 Billion as Imports Outpace Exports in FY26

India’s merchandise trade with its 10 BRICS partners recorded a significant imbalance in 2025-26 (FY26), with imports substantially exceeding exports. India imported goods worth $321.8 billion from the grouping, compared with exports of $95.7 billion, resulting in a trade deficit of $226.1 billion.

As New Delhi prepares to host the 18th Brics Summit on Saturday and Sunday, deepening intrabloc trade and strengthening global value chains (GVCs) are likely to be among the top agenda items.

India’s BRICS Trade Shows Wide Import-Export Gap

India’s 10 BRICS partners accounted for nearly 42 per cent of India’s merchandise imports in 2025-26 (FY26), while their share of India’s exports stood at 22 per cent.

The country imported goods worth $321.8 billion from these partners against exports of $95.7 billion, leaving India with a $226.1 billion trade deficit.

The deficit with BRICS members represented nearly 68 per cent of India’s overall merchandise trade deficit of $334.3 billion recorded in the last financial year.

China, UAE and Russia Drive Most of the Deficit

The trade imbalance was concentrated among a small number of countries. China, the United Arab Emirates (UAE), and Russia accounted for nearly 84 per cent of India’s trade deficit with the 10 BRICS partners.

Together, these countries supplied goods worth $250.9 billion, equivalent to nearly a third of India’s merchandise imports in FY26. China, the UAE and Russia are also among India’s top import sources.

China Accounts for Nearly Half of BRICS Trade Deficit

China alone contributed nearly half of India’s BRICS trade deficit. India’s imports from China stood at $131.6 billion, compared with exports of $19.5 billion, resulting in a deficit of $112.2 billion in FY26.

Union Commerce Minister Piyush Goyal is expected to discuss the widening deficit with his Chinese counterpart on the sidelines of the two-day summit.

Russia’s Trade Deficit Expanded After 2022

Russia was the second-largest contributor to India’s trade deficit among the BRICS partners. India imported $55.4 billion worth of goods from Russia while exporting $4.5 billion, resulting in a trade gap of $50.9 billion.

India’s trade deficit with Russia expanded only after the start of the Russia-Ukraine war, which began in February 2022, when Moscow began offering crude oil at a discounted price.

UAE Trade Gap Linked to Crude Oil Imports

The UAE was another major contributor to India’s trade imbalance, partly due to a large quantity of crude-oil imports.

India imported goods worth nearly $64 billion from the UAE while exporting $37.4 billion, resulting in a $26.5 billion deficit in FY26.

India and the UAE also have a free-trade agreement (FTA). Despite the trade deficit, the UAE is India’s top export destination among the Brics members.

India Records Surpluses With Three BRICS Partners

India recorded trade surpluses with only three partners — Egypt, Ethiopia and Iran — in FY26.

The trade data shows that while BRICS has become a significant pillar of India’s trade, its expansion has so far been accompanied by a predominantly import-led relationship. The trade gap remains concentrated among a few major partners.

India’s BRICS Trade Basket in FY26

BRICS Expansion

BRICS was formed in 2006 as an informal grouping, with its first formal summit held on June 16, 2009.

The grouping has since expanded and now comprises 11 countries: Brazil, China, Egypt, Ethiopia, India, Indonesia, Iran, Russia, Saudi Arabia, South Africa and the United Arab Emirates.