New Delhi: The 18th BRICS Summit provides India with an opportunity to deepen economic engagement with emerging markets and translate cooperation among member countries into tangible benefits for Indian businesses, the PHD Chamber of Commerce and Industry (PHDCCI) said on Thursday.
PHDCCI President Rajeev Juneja said the success of BRICS should ultimately be assessed by whether it makes cross-border trade and investment cheaper, faster and simpler for companies.
He said India should push for a mechanism to address trade barriers faced by businesses, including customs procedures, documentation, standards and regulatory requirements. A BRICS Trade Barriers Resolution Mechanism could allow companies to report such issues, route them to the relevant authorities and track their resolution, turning trade facilitation commitments into a practical tool for businesses.
Juneja also called for greater use of national currencies, including the Indian rupee, for cross-border trade. He said this could help reduce transaction costs and certain payment risks, but would require banking channels, correspondent banking arrangements and practical mechanisms for settling transactions in different currencies. The objective, he said, should be to provide businesses with more payment options rather than create a single BRICS currency.
PHDCCI further advocated greater use of India’s Unified Payments Interface (UPI) for cross-border transactions. Linking BRICS payment systems, along with interoperable QR payments, faster money transfers and common technical standards, could benefit small exporters, service providers and medium-sized businesses.
Access to finance for small and medium enterprises should also be a priority, Juneja said. For smaller exporters, securing financing for orders and managing payment delays can be as challenging as finding buyers. Building on the Jaipur Consensus, India could push for mechanisms that facilitate invoice financing and trade finance, including potential linkages with the Trade Receivables Discounting System (TReDS).
The industry body also called for greater cooperation on standards and certifications, noting that products meeting domestic requirements may still face additional testing and approvals in other BRICS markets. Sector-specific arrangements in areas such as pharmaceuticals, engineering goods, automobiles, electronics, food processing, chemicals, textiles and medical devices could help reduce these costs.
(IANS)
