India's SME Exports To Get A BRICS Fillip

An economic grouping that emerged nearly two decades ago as a concept among major emerging markets has gained greater significance because the global economy is becoming increasingly multipolar.

The 18th BRICS Summit, to be hosted by India in New Delhi on September 12-13, comes at a time of heightened uncertainty over tariffs, trade policies and geopolitical tensions.

With “Building for Resilience, Innovation, Cooperation and Sustainability” as its theme, India is seeking to use the grouping not only as a platform for discussions on global and regional issues but also to push a more practical economic agenda — particularly greater global market access for small and medium enterprises (SMEs/MSMEs).

Why SME Exports Are A BRICS Priority

The push comes as India seeks to diversify its export markets amid uncertainty around US trade policies and disruptions in global supply chains. India has simultaneously expanded market access through trade agreements with partners including New Zealand, the UK and the European Union.

MSMEs are central to this export strategy. The sector contributes nearly $190 billion to India’s exports, accounting for around 40-45% of merchandise exports, while employing more than 110 million people. SME exports are also currently recording double-digit growth, according to reports.

India’s trade with BRICS economies provides another significant opportunity. India’s exports to BRICS countries stood at nearly $82 billion in FY26, while services exports were around $31.3 billion in CY24.

Expanding access for smaller businesses across these markets could therefore have implications beyond trade volumes, potentially supporting investment, production and employment.

The Centre has also backed the push domestically through its ₹25,060-crore Export Promotion Mission for FY26-FY31, which provides trade finance, interest subventions and logistics support to help smaller businesses integrate into global supply chains.

New Platforms For MSMEs And Start-Ups

India’s BRICS agenda includes institutional mechanisms intended to make cross-border expansion easier for smaller companies.

The BRICS MSME Cooperation Portal is designed to connect MSMEs and technology centres with trade associations, financial institutions, training organisations and policymakers.

A proposed work plan on MSME internationalisation and institutionalised discussions on MSME finance are aimed at addressing two persistent constraints: market access and funding.

Start-ups are also being brought into the framework through the BRICS Incubator Network, which will link national nodal agencies, incubators and startups across member countries.

The proposed BRICS Startup Innovation Fund is intended to support early- and growth-stage companies, although its corpus, structure and launch timeline have not yet been specified.

Can Local Currencies Help SMEs Trade?

A key part of the broader BRICS economic agenda is strengthening financial cooperation and expanding the use of national currencies for cross-border trade settlement.

Finance ministries and central bank representatives from BRICS countries met in Jaipur on August 12-13 to discuss financial cooperation, payments and greater use of local currencies.

Cross-border payments currently rely heavily on correspondent banking networks. Banks use intermediaries to transfer funds, while SWIFT, the Belgium-based financial messaging network, facilitates the exchange of payment instructions between institutions.

SWIFT connects more than 11,000 institutions across over 200 countries, making it deeply embedded in global payments.

For SMEs, alternative cross-border payment arrangements could potentially reduce conversion costs and simplify transactions if they become sufficiently liquid and accessible.

Currency swaps could provide liquidity between participating countries, while local-currency settlement could reduce reliance on dollar conversions. However, scaling such frameworks would require BRICS members to resolve issues around customer verification, data regulations, capital controls, sanctions compliance and currency liquidity.

What Could SME Export Push Mean For India?

For India, a sustained increase in MSME exports could create a multiplier effect across manufacturing, services and employment. Smaller companies gaining access to overseas customers can expand production, invest in capacity and potentially become integrated into global supply chains.

The BRICS platform could also help Indian MSMEs diversify beyond traditional markets and reduce dependence on any single trading partner at a time when tariffs and geopolitical tensions are reshaping global commerce.

The critical question, however, is whether the new BRICS mechanisms translate into actual orders, financing and easier market access for businesses, rather than remaining institutional initiatives.