BRICS non-tariff barriers: Eliminating them can fix 75% of engineering exporters' woes
Synopsis
EEPC India says a common BRICS agreement on non-tariff barriers could fix three-quarters of the engineering sector's export problems overnight — a striking claim backed by data showing India's engineering goods hit $12.24 billion in July 2026, up 18% year-on-year. With BRICS controlling a quarter of global trade, the stakes of getting this right are enormous.
Key Takeaways
EEPC India urged BRICS nations to eliminate non-tariff barriers, saying it would resolve up to 75 per cent of engineering exporters' challenges.
EEPC India Chairman Pankaj Chadha called for a binding common agreement on regulatory standards among BRICS members.
India's engineering goods contribute nearly 27 per cent of total merchandise exports; key BRICS destinations include Brazil, China, Indonesia, Saudi Arabia and South Africa .
Engineering exports surged 18 per cent year-on-year to $12.24 billion in July 2026 , up from $10.40 billion in July 2025.
BRICS economies account for nearly one-fourth of global trade, amplifying the potential impact of any barrier-reduction agreement.
EEPC India, the apex body for engineering exporters, on Sunday, 13 September 2026, urged BRICS nations to dismantle non-tariff barriers and build a seamless payment mechanism in national currencies — a move it says could resolve up to 75 per cent of the challenges currently hampering Indian engineering exporters.
The Core Demand
EEPC India Chairman Pankaj Chadha made the case directly: 'Around 75 per cent of the problems faced by exporters can be solved by eliminating non-tariff barriers and having a smooth and efficient payment mechanism in individual national currencies.' Chadha pressed for a binding common agreement among BRICS members on a shared set of regulatory standards, adding: 'While we have been discussing this for a while now, it is time to move to its execution.'
Non-tariff measures — which include regulatory divergences, customs documentation requirements, and technical standards — are widely regarded as imposing higher costs on cross-border trade than conventional tariffs in many countries, making their removal a priority for export-oriented industries.
Why BRICS Is the Right Forum
The BRICS bloc collectively accounts for nearly one-fourth of global trade. According to industry representatives, streamlining non-tariff procedures within this grouping alone could meaningfully expand the bloc's share of international commerce. The push for national-currency payment mechanisms also aligns with a broader BRICS conversation about reducing dependence on dollar-denominated settlement systems.
Engineering Exports: Scale and Stakes
India's engineering sector is not a peripheral player — it contributes nearly 27 per cent of the country's total merchandise exports, making it one of the largest export segments. Key BRICS-affiliated destinations for Indian engineering goods include Brazil, China, Indonesia, Saudi Arabia, and South Africa.
The sector has demonstrated resilience despite global headwinds. In July 2026, India's engineering goods exports rose 18 per cent year-on-year to $12.24 billion, even as geopolitical uncertainties and disruptions along key West Asian trade routes weighed on sentiment. This compares with $10.40 billion recorded in July 2025.
What Happens Next
With BRICS discussions now reportedly shifting from dialogue to implementation, industry bodies are pushing for a formal framework that ties regulatory harmonisation to measurable trade outcomes. If a common standard agreement is reached, the engineering sector — already on an upward export trajectory — stands to gain most directly. Analysts will watch whether the BRICS trade track in coming months produces a concrete non-tariff barrier reduction roadmap or remains aspirational.
Point of View
And a single headline statistic risks oversimplifying a complex negotiating challenge. More telling is the shift in tone: India's engineering exporters are no longer asking for discussions, they are demanding execution. That urgency is well-founded given that BRICS has been talking about regulatory harmonisation for years with little binding output. The July 2026 export surge of 18 per cent shows the sector can grow despite the friction — which raises the question of how much more it could achieve with a functioning common standards framework. The national-currency payment mechanism demand is equally significant and sits inside a much larger geopolitical conversation about dollar dependency that BRICS has yet to resolve.
NationPress
13 Sept 2026
Frequently Asked Questions
What are non-tariff barriers and why do they matter for Indian engineering exporters?
Non-tariff barriers are regulatory, documentation, and standards-related hurdles that increase the cost and complexity of cross-border trade without involving direct import duties. For Indian engineering exporters, they are considered more costly than tariffs in many markets, which is why EEPC India estimates their removal could resolve 75 per cent of the sector's trade challenges.
What did EEPC India specifically ask BRICS nations to do?
EEPC India Chairman Pankaj Chadha called on BRICS members to agree on a common set of regulatory standards to eliminate non-tariff barriers and to establish a smooth payment mechanism in national currencies. He stressed that discussions must now move to execution rather than remaining at the level of dialogue.
How large is India's engineering export sector?
Engineering goods account for nearly 27 per cent of India's total merchandise exports, making it one of the country's largest export categories. In July 2026, the sector posted exports worth $12.24 billion, an 18 per cent year-on-year increase.
Why is a national-currency payment mechanism being proposed?
A national-currency payment mechanism would allow BRICS trading partners to settle transactions in their own currencies rather than in US dollars, reducing exchange-rate exposure and transaction costs. This aligns with a broader BRICS agenda of reducing dependence on dollar-dominated global financial systems.
Which BRICS countries are the top destinations for Indian engineering exports?
According to EEPC India, the key BRICS-affiliated destinations for Indian engineering goods are Brazil, China, Indonesia, Saudi Arabia, and South Africa. These markets stand to see increased Indian engineering trade if non-tariff barriers are reduced under a common agreement.
