India’s tightrope: Balancing BRICS ambitions amid rising US tariff threats
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By: Pirzada Shakir | Published: July 29, 2025
Reading Time: 6 minutes
New Delhi — India’s growing stature in the BRICS grouping is putting a spotlight on its diplomatic balancing act, as Washington threatens sweeping tariffs against member states of the emerging economies bloc.
With Indian exports, particularly in pharmaceuticals and copper now under scrutiny by US trade authorities, New Delhi finds itself navigating one of its most complex foreign policy and trade dilemmas in decades.
The United States, citing BRICS’ efforts to build “alternative” financial architectures and “challenge dollar” dominance, has warned of a 10% blanket tariff on all imports from BRICS nations.
India, a BRICS member since its inception, is also facing targeted tariff threats, including a 200% duty on generic pharmaceuticals and 50% on refined copper exports, both of which make up a substantial portion of India’s outbound trade to the US.
Not a pushover
“India is no longer a pushover. And this is something western countries do not like,” said Anil Trigunyat, former Indian diplomat who has served in Russia and the United States, besides other countries. “The autonomy of India’s foreign policy bugs them. They would prefer, which India has never done, by the way–towing their line in everything and every which way blindly.”
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India’s trade with the United States crossed $118 billion in exports in 2024, accounting for nearly 18% of the country’s total outbound goods, making the US its most important export market. Indian manufacturers, especially in sectors like pharmaceuticals and metals are now staring at renewed uncertainty.
Uday Bhaskar, Director General of Pharmaceuticals Export Promotion Council of India is not convinced with President Trump’s tariff threats to India. He said that Washington can’t bear to impose such exorbitant tariffs on India pointing towards what he termed as Trump’s “inconsistency” with his statements; and shortage of active pharmaceutical ingredients in the US to manufacture medicines.
“Our exports [to the US] are to the tune of 10 billion,” Bhaskar told Asia-Pacific Insights.
“If at all they wanted to manufacture a drug in the US by their own companies they would have to depend on almost 75 to 80% of the components used in the drugs…. so, it’s unrealistic. I don’t think it’s going to happen.”
He, however, admitted that Pharma companies cannot afford to lose the US market.
“Our people are more interested in the US because the main revenue of the top Indian companies comes from there,” Bhaskar said.
He also highlighted that Indian pharmaceuticals are more relevant to Africa due to its growing population, poverty and economy, but “profits may be less in African countries.”
Copper exporters are equally unsettled. India’s refined copper shipments to the US have tripled since 2022, filling supply gaps created by global geopolitical tensions and pandemic-era disruptions.
Pankaj Chadha, Chairperson of Engineering Export Promotion Council of India or EEPC said, “We have had meetings with the government on the issue.”
“He [President Trump] is a very unpredictable person. He can do anything at any point,” said Pankaj Chadha. “But negotiations are going on. We are hopeful the government will convince the US.”
A three-pronged strategy
Sandeep Dubey, an economist based in New Delhi advocated for a three pronged strategy. He said that India must simultaneously pursue diplomacy, diversification, and domestic reinforcement.
“Delhi should use its strong negotiating position in the Bilateral Trade Agreement,” Dubey said. “It can offer selective market access like LNG or civil aviation purchases, in exchange for either an exemption or a time-limited reduction of drug tariffs.”
He also suggested India should “activate a WTO dispute and keep a narrow list of potential retaliatory measures ready” to maintain leverage without torpedoing negotiations.
“Fairer world order”
At the 2025 BRICS Summit in Kazan, India’s Prime Minister Narendra Modi called for a “fairer world order” and pushed for strengthening collaboration in digital public infrastructure and climate finance. But, in contrast to China and Russia’s more assertive posture within the bloc, India has been measured, opposing “de-dollarization” agendas and resisting moves that might isolate its western partners.
“We don’t generally subscribe directly to a BRICS currency or replacing the US dollar,” former diplomat Trigunyat said. “But what we are doing is, working on bilateral currency mechanisms with a large number of countries.”
Indian officials have so far avoided public confrontation with Washington. Instead, back-channel discussions and strategic talks are ongoing. New Delhi maintains that its membership in BRICS does not amount to a “political alignment” with Beijing or Moscow, and that it shares key values with the West, particularly on trade openness and “rules-based order.”
At the same time, India is continuing to explore a bilateral trade agreement with the US, and has suggested that such a pact could effectively neutralize tariff disruptions.
“BRICS is as important as, for example, the G7 nations,” Trigunyat told Asia-Pacific Insights.
“We cannot be dependent on one or the other. So, whether it is our energy security or our technological security or anything else that we are trying to collaborate on. So, in all those areas, the most essential thing for us is our own national interest. And that is what many countries may not like.”
Dubey noted the crisis might offer India an inflection point for strategic recalibration.
“The pharmaceutical industry can turn the tariff barrier into a chance for growth by speeding up supply-chain flips,” he said, pointing to US FDA-approved Indian firms who could shift production to the US and invest in high-value drugs like biosimilars and niche formulations.
Domestically, Dubey says that the government of India should offer export-credit insurance, working capital interest support, and GST drawback to help firms navigate a potentially turbulent 12- to 18-month transition for Indian exporters.
India’s approach is being watched by other emerging economies like Brazil, South Africa, and Indonesia, who face similar balancing acts between economic opportunities with China and Russia while maintaining strong western trade ties.”
For now, India is waiting, and quietly negotiating. Industry leaders are pushing the commerce ministry for tariff cushions or short-term support. With global trade increasingly weaponized, India’s tightrope walk between emerging power blocs and major Western markets may only get harder.
“We should continue what we are doing, like building BRICS, being in good relations with BRICS partners, continuing our engagement with the United States and try to persuade them to understand the logic and the reason,” Trigunyat said.
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