Can Brics make India a China alternative in advanced manufacturing and EVs? Expert answers

India can use the Brics network to strengthen its position as an alternative manufacturing and supply-chain hub to China, particularly in advanced manufacturing and electric vehicle (EV) components, according to Nirmal K Minda, president of the Associated Chambers of Commerce and Industry of India (ASSOCHAM).

Minda said Brics cooperation could help Indian companies improve technology, develop more efficient manufacturing processes and secure raw materials needed to build globally competitive supply chains.

“India can leverage the Brics network for technology enhancement, efficient process development and securing raw material supplies for its enterprises,” Minda told Firstpost.

His comments assume significance as India prepares to host the 18th Brics Summit in New Delhi on September 12-13. India assumed the Brics chairship on January 1, 2026, for the fourth time. The 2026 chairship is being conducted under the theme “Building for Resilience, Innovation, Cooperation and Sustainability”.

The timing also comes as India seeks to deepen domestic manufacturing capabilities in sectors ranging from semiconductors and electronics to automobiles and EVs.

Can Brics help India build a China alternative?

For Indian industry, the opportunity from Brics goes beyond access to new export markets. Minda’s assessment points to the importance of using the grouping to build capabilities across the manufacturing chain.

That includes access to technology, critical inputs, efficient production processes and more resilient supply networks.

India is already putting significant public-policy support behind this effort. On July 15, the Union Cabinet approved Semicon 2.0 with an outlay of Rs 1,27,500 crore. The programme is designed to expand India’s semiconductor ecosystem across chip design, fabrication, advanced packaging, equipment and materials, research and development, and talent development.

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As of July 2026, 12 semiconductor projects involving committed investments of more than Rs 1.64 lakh crore had been approved under the government’s semiconductor programme, with three facilities already starting commercial production, according to the government.

This matters for the EV industry as well. Modern vehicles increasingly depend on semiconductors, power electronics and other advanced components, making domestic capabilities in these areas critical for reducing supply-chain vulnerabilities.

EV supply chain is another major opportunity

India’s automobile industry is also being pushed towards greater localisation.

The Production Linked Incentive scheme for automobiles and auto components, approved in 2021 with an outlay of Rs 25,938 crore, is aimed at building manufacturing capabilities for advanced automotive technology products, including EVs. The scheme requires a minimum 50 per cent domestic value addition for eligible products.

As of March 31, 2026, approved applicants had reported investments of Rs 44,326 crore under the scheme, above the target of Rs 42,500 crore for that stage, according to the Ministry of Heavy Industries.

The government said in August that EV sales supported under the PM E-DRIVE scheme had reached 26.59 lakh by June 30, 2026. Under PLI-Auto, about 21.30 lakh EVs had been sold up to March 31, 2026. As of August 7, a total of 67,657 EV chargers had been installed across India.

These developments show that the challenge is no longer simply creating demand for EVs. India also needs a deeper domestic component ecosystem if it wants to become a major manufacturing and export base.

What must Indian companies do in Brics+ markets?

The expansion opportunity comes with its own challenges.

Indian manufacturers entering other Brics and Brics+ markets will have to deal with differences in regulations, market structures, customer preferences and business practices.

Minda said companies would need an industrial design that balances diversity across markets with functionality and efficiency.

“In order to navigate local integration challenges, Indian manufacturers have to work towards an industrial design that reconciles diversity with functionality to ensure efficacy,” he said.

He identified robust supply chains, compliance, payment settlements, business development and a competitive cost structure as key requirements.

That means the success of India’s Brics strategy will depend not just on political agreements, but on whether companies can translate those agreements into commercially viable partnerships and supply chains.

Local currencies: Gradual but growing

Payments are another area where Brics cooperation could have a direct impact on businesses.

Minda said the use of local currencies in trade among Brics countries was gaining traction, although the shift remained gradual.

“The current focus reflects incremental steps, bilateral arrangements, and infrastructure development to facilitate local currency settlements, with the potential for broader multilateral adoption in the future,” he said.

There is already evidence of such mechanisms becoming more practical in India-Russia trade.

Reuters reported on September 2 that India and Russia had established payment infrastructure using the rupee and rouble that was facilitating 96 per cent of bilateral trade. The system involves 22 Russian and 17 Indian banks, while around 90 per cent of transactions are reportedly completed within 10 minutes.

The development is significant because India’s trade with Russia has faced payment complications in the past amid sanctions and restrictions on conventional financial channels.

At the broader Brics level, payment connectivity is also being discussed. In August, Reserve Bank of India Governor Sanjay Malhotra said Brics countries were discussing the possible interlinking of fast-payment systems and central bank digital currencies, with the aim of reducing the cost and improving the efficiency of cross-border payments.

Digital platforms could become more important

Minda expects digital trade platforms to play a larger role as local-currency settlement mechanisms develop.

“The Indian private sector is strengthened to adopt changes, and we believe that digital trade platform will see a greater role in coming years for trade settlement,” he said.

For businesses, digital payment and trade infrastructure could potentially reduce some of the friction associated with cross-border transactions while improving settlement speed and transparency.

This could become increasingly relevant as Brics expands its economic footprint and seeks to strengthen commercial links among member and partner economies.