BRICS Chamber’s Dr. B.B.L. Madhukar Urges Economic Resilience Over Protectionism Amid U.S. Tariff Threats, ET Government

Dr. B.B.L. Madhukar, Co-Chairman & Director General, BRICS Chamber of Commerce & IndustryAs protectionist policies gain ground and the U.S. renews tariff threats, BRICS nations are being compelled to rethink their collective economic posture. In an exclusive interview with Ashutosh Mishra of ETGovernment, Dr. B.B.L. Madhukar, Co-Chairman & Director General, BRICS Chamber of Commerce & Industry and Chairman, Foundation for Organisational Research and Education (FORE), lays out a clear-eyed view of how the bloc should navigate this shifting global trade environment.

He speaks on India’s calibrated approach to balancing bilateral ties with the U.S. while staying committed to BRICS multilateralism, the Chamber’s perspective on de-dollarization, and the need to harmonize standards and reduce trade barriers within BRICS+. Dr. Madhukar also stresses the importance of strengthening MSMEs, expanding value chains, and fostering innovation through public-private partnerships to ensure real economic impact on the ground.

Edited Excerpts:

Q. In light of renewed U.S. tariff threats, particularly towards countries aligning with BRICS, how cohesive is the bloc’s current strategy to respond to protectionism, and what tangible countermeasures or policy tools is the BRICS Chamber advocating?

Protectionism is not a new thing; it has been growing globally. This reverse shift after years of globalisation can be attributed to many factors like geopolitical considerations, national security concerns as well a country’s efforts to enhance economic resilience in the wake of COVID-19 pandemic. As per a recent Federal Reserve Report, the US Tariffs have a significant effect on Global GDP, reducing it by 0.8 percent. We need economic resilience as well as self-reliance in many sectors but we cannot be specialists in everything. Hence, trade happens. It is well known that protectionism through tariff as well as through non-tariff measures hampers trade. BRICS chamber advocates for minimising protectionist policy and promotion of trade in order to enhance value and bring about overall global GDP growth.

Q. India is reportedly close to finalizing a bilateral trade arrangement with the U.S. that could ease tariff frictions. Given BRICS’s collective stance against unilateralism, how do you assess India’s dual-track approach – balancing its national trade interests with multilateral commitments within BRICS?

BRICS as a collective was formed not as a trading bloc but to voice the concerns of the emerging and developing countries and enhance the representation of the Global South in global institutions like IMF, WB and UNSC. It is a forum advocating multilateralism. After the global financial crisis in 2008, the BRICS has enhanced its political and economic weight. Intra-BRICS trade has improved considerably since its conception reaching almost $422 billion in 2020. The USA is still the largest and robust economy in the world. It has been India’s single largest trading partner since 2021-22 with bilateral trade valued at $131.84 billion. The US dollar is still the most valued currency. We cannot afford to antagonize the US. Here, we have to find a mid-way through deft diplomacy in handling our relations with both the worlds. Also, as part of BRICS, we should promote more Value Chain activities.

Q. The push for de-dollarization has gained momentum across BRICS, yet India has taken a more cautious, calibrated stance. What is the Chamber’s perspective on the feasibility of reducing dollar dependency, and how do you view India’s approach in the context of long-term financial sovereignty and trade resilience?

De-dollarization has been discussed in BRICS summits and meetings. Though the concept of Optimum Currency Area (OCA) within the BRICS bloc emerges as a compelling proposition, there is a lot of groundwork that needs to be done given the realities of the existing environment. BRICS Pay and BRICS Clear are initiatives proposed to become centralised payment technology services and clearing and settlement systems. However, India has taken a calibrated stance against de-dollarization because it is still the most valued currency from a stable and robust nation. At the same, there is a possibility that the dependency on dollar will be reduced given the increasing volume trade between the BRICS plus nations. Internationalization of the rupee was conceived decades ago but the pivotal moment has not yet arrived. However, the RBI’s increasing purchase of Gold as an option of foreign exchange reserve is indicating its will to further strengthen the internationalization of Rupee and reduce dollar dependency.

Q. Despite political alignment, intra-BRICS trade still faces substantial tariff and non-tariff barriers. What concrete steps, such as harmonization of standards, trade facilitation mechanisms, or sectoral agreements, is the BRICS Chamber prioritizing to deepen internal economic integration?

Yes, there are substantial tariff and non-tariff barriers in intra-BRICS trade. However, it is to be noted that there is an increasing trade among BRICS plus nations also. This increase is faster than the increase in the trade between BRICS plus and G7. In order to increase economic integration, there is a need for harmonisation of standards with respect to carbon accounting, ESG governance, hydrogen technologies etc. Also to facilitate trade, there has to be rationalisation of tariffs as well as non-tariffs and hence more FTAs.

Q. With BRICS expansion bringing in diverse economies like Egypt, UAE, and potentially Saudi Arabia, how does the Chamber plan to manage increasing internal divergence on trade, finance, and geopolitical alignment? Are there mechanisms being proposed to ensure policy coherence while respecting national interests?

Expansion may cause divergent political views in the bloc. However, BRICS has withstood western scepticism and is yet to bring its full potential to the fore. Here, I think India would play a pivotal role as it is a leader in managing diversity and protecting the idea of a nationhood for more than 78 years.

Q. As an industry veteran, what sectors or collaborative frameworks do you believe the grouping should now prioritize to deliver real, on-the-ground economic impact for its members, particularly MSMEs, startups, or manufacturing players in countries like India?

We should emphasise more on strengthening our activities in Global Value Chains, create an environment of freedom for creative thinking. This needs a lot of Government initiatives through financial back up, promotion of favourable financial instruments as well public private partnerships. As a BRICS plus collective, there is scope for encouraging cooperation of the members on Technical Assistance and improving the parameters of Ready to do Business Index.

• Published On Jul 16, 2025 at 02:18 PM IST

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