BRICS: exchanging investment, resources, and ideas
Last year saw the largest expansion of BRICS so far, with the UAE, Egypt, Iran, and Ethiopia joining the group. Currently, BRICS countries are home to about 45% of the world’s population, and their share of global GDP by purchasing power parity is approaching 37%. BRICS members now use their own national currencies for over 30% of mutual settlements (65% in Russia’s case).
The Global Clout of the New BRICS (BRICS countries' share of global GPD, population, oil production and goods exports)
Sources: IMF, UN Population Division, Energy Institute, WTO
Georgy Toloraya,
Director of the National Committee on BRICS Research:
The economic objectives of BRICS were outlined in the 2024 Kazan Declaration. From our perspective, most notable among these are the areas of financial development that include establishing a fair financial architecture, managing debt, creating a BRICS investment platform based on the New Development Bank, expanding interbank cooperation, and increasing the use of national currencies to support the economic interests of member and partner countries.
In the following article, we join with the experts to explore how BRICS helps companies develop international trade.
Key BRICS institutions for business
The BRICS Business Council, established in 2013, serves as the primary platform for addressing the bloc’s economic, trade, and investment issues. This council is the source of key initiatives tailored to the needs of companies from member states and designed to develop and enhance business relations. It consists of several working groups, each responsible for a specific area such as industry, finance, agriculture, transportation, digital economy, and so on.
Last year, the council produced around 40 recommendations. One of the goals BRICS pursues is fostering dialogue between the business community and government structures. Entrepreneurs can engage with the council through their country’s national body, such as the council’s Russian or Indian branch.
In 2024, a new subgroup on transport and logistics was established within the council to oversee the development of transportation and logistics corridors. Additionally, the council is promoting business financing through the NDB and has issued relevant recommendations for banking institutions.
The New Development Bank is the main institution within BRICS responsible for business investment, basically functioning as an alternative to the World Bank and the IMF. According to Alexey Kupriyanov, Head of the Centre for the Indo-Pacific Region at IMEMO RAS, though the NDB readily provides loans to larger companies for transportation and social projects, it offers minimal funding to develop digital infrastructure.
At the end of last year, the NDB announced plans to expand lending to private businesses in national currencies. Priority will be given, among others, to projects connected with sustainable development and renewable energy. At the Kazan summit, BRICS countries agreed to significantly increase the NDB’s investment portfolio (currently worth over $30 billion) in the coming years. India is the leader in terms of the number of NDB projects being considered.
New initiatives
One of the key achievements by BRICS last year was the creation of an industrial competence centre to facilitate the exchange of best technological practices and the integration of manufacturing companies across member states. Russia, China, and India have expressed their readiness to finance the project, with the UAE also joining the initiative.
Since 2020, the BRICS Solutions Awards have been held to recognise best practices. Private companies, public institutions, and non-profit organisations are all eligible to participate, presenting ideas and practices that can be replicated across other member countries. In 2024, there were nine award categories, including artificial intelligence, biotechnology, energy, and the creative economy.
“We advise companies to submit their proposals to the ministries and agencies responsible for implementing government policies, projects, and development programmes in BRICS countries, as well as to the Business Council,” says Georgy Toloraya.
“The initiative to identify BRICS best practices is a tool for supporting projects and ideas aimed at improving people’s quality of life, fostering the exchange of advanced experience, and creating a pool of joint projects.”
Alexey Kupriyanov,
Head of the Centre for the Indo-Pacific Region at IMEMO RAS:
The various avenues available include business conclaves, industrial innovation competitions, and the agricultural knowledge exchange platform. Companies seeking to leverage BRICS resources to expand their business to other member countries should keep an eye on the agenda of events held within the bloc. These events can be helpful in finding partners and investors, provided the company is prepared to negotiate terms and adapt to the existing circumstances.
Last year, work began on developing the BRICS Bridge platform for conducting international transactions in national digital currencies. This solution is expected to significantly reduce dependence on third countries and the number of intermediaries involved while increasing the speed and transparency of payments. Test transactions are planned for this year, initially focusing on payments for energy resources before expanding into the consumer goods sector.
This tool is needed primarily by banks and exporting companies. The unit of account will likely be a gold-backed stablecoin. Experts believe that the new mechanism could increase trade turnover between BRICS countries by as much as 10% following its implementation, with transfer fees at least halving. The new system is a continuation of the BRICS Pay project, which aimed to integrate three payment systems — Russia’s MIR, China’s UnionPay, and India’s RuPay.
“Indian companies mostly carry out international transactions in convertible currencies, unless there is an agreement in place to trade in national currency, such as with Russia, the UAE, and others,” says Nandan Unnikrishnan, Vice President of the Observer Research Foundation (ORF).
Private sector projects are also regularly launched within BRICS. For example, in autumn 2024, the Astana International Financial Centre in Kazakhstan developed the BRICS+ Investment Club, an online crowdfunding platform which provides financial tools for entrepreneurs from Russia, Brazil, India, China, South Africa, and other countries engaged in international trade.
Looking to the future
At present, BRICS accounts for 16% of global trade, but experts predict that by 2030 this share will more than double to 35%. Nandan Unnikrishnan notes that BRICS has not yet reached its full economic potential, with its latent energy exceeding its kinetic energy. This in turn presents vast opportunities for companies doing business with member states.
Georgy Toloraya,
Director of the National Committee on BRICS Research:
It’s worth highlighting the potential for BRICS member and partner states to cooperate in streamlining the work of industrial competence centres as well as improving energy security and digital data management. Both public and private BRICS institutions, guided by agreements between heads of state, are addressing these objectives based on the principles of mutual respect, equality, and sovereignty.