Abstract

International trade in modern times has huge potential to shape its macroeconomic indicators in the right direction. Increased international trade helps to set in the economies of scale by enabling the countries to specialize in the production of comparative advantageous goods and services. It helps to improve efficiency in terms of productivity and costs. To encourage the economic cooperation in between emerging markets BRICS was formed. The current study attempted to examine the India’s trade relations with BRICS countries. The study is purely descriptive in nature. We found that BRICS is of utmost importance for India both politically as well as economically. India needs to capitalize on the opportunity in order to achieve its goals while being associated with BRICS. Geographical distance increases both the time it takes to export and the cost of exports, which is neither advantageous to India nor to another partner. This line of explanation suits the logic of gravity model international trade. India should focus on raising its export profile in order to engage in trade operations with the BRICS nations more firmly.

Description