The global trade landscape is undergoing a dramatic transformation, and nowhere is this more apparent than in the shifting alliances and strategies of the BRICS bloc. Once a modest coalition of five emerging economies—Brazil, Russia, India, China, and South Africa—BRICS has now expanded to include resource-rich and strategically significant nations like Saudi Arabia, the United Arab Emirates, and Egypt. This expansion, taking shape as of October 27, 2025, is not just a matter of geopolitics; it’s fundamentally changing how goods move around the world, how payments are made, and which countries wield real influence in the global marketplace.
For decades, the United States stood at the center of global trade. The dollar reigned supreme, American consumers drove demand, and US-centric supply chains determined the flow of freight. But that dominance is no longer a given. As BRICS expands and deepens its ties, new South-South trade corridors are drawing cargo away from traditional US and European hubs, and emerging markets—especially India—are increasingly shaping the direction of global commerce. According to reporting from This Week in Asia and IANS, the expansion of the BRICS bloc is accelerating these changes, forcing logistics and shipping companies to rethink their strategies and adapt to a world where Washington’s leverage is being tested.
One of the most visible shifts is in the way goods are routed. With the inclusion of powerhouse economies like Saudi Arabia and the UAE, oil, gas, and other bulk commodities are now moving along South-South corridors. Instead of defaulting to routes through the US or Europe, these commodities are being shipped directly between Africa, the Middle East, and Asia. India, in particular, has emerged as both a manufacturing alternative to China and a major consumption market in its own right. The result? Cargo flows that once depended on eastbound trans-Pacific and westbound trans-Atlantic trade are now complemented—or even replaced—by robust Asia–Middle East–Africa linkages. Ships and aircraft are being deployed along routes that barely registered a decade ago, as the gravitational pull of the US as a destination begins to wane.
But the changes don’t stop at shipping lanes. The very currency of global trade is in flux. BRICS nations are increasingly experimenting with settlements in local currencies, bilateral swap agreements, and payment systems that bypass the US dollar. While the dollar remains deeply entrenched, this trend is more than symbolic. For logistics operators and multinational shippers, it means grappling with contracts, customs payments, and insurance policies in a patchwork of currencies—yuan, rupees, and even new basket-based units. As This Week in Asia notes, this currency diversification introduces new volatility and complexity, requiring sophisticated hedging strategies and careful management of financial risk. The days of assuming the US dollar will always be the default anchor are fading, and companies are being forced to adapt to a more fragmented financial landscape.
Infrastructure investments are further tilting the balance. China’s Belt and Road Initiative, now bolstered by India’s own regional ambitions, is reshaping the backbone of global logistics. Billions of dollars are flowing into ports, railways, and logistics parks across Africa, Latin America, and the Middle East. These investments don’t just increase capacity—they fundamentally redirect trade corridors. African minerals that once traveled through European ports are now shipped via Chinese- or Gulf-financed terminals. Latin American agricultural products are finding new routes into Asia, bypassing North American hubs altogether. For US carriers and freight forwarders, this means supply chains are increasingly anchored in regions where American influence is limited, and the traditional choke points of global commerce are being reimagined.
India and Brazil, both founding members of BRICS, are at the forefront of this transformation. On October 26, 2025, the two countries announced a substantial expansion of the trade agreement between India and the MERCOSUR bloc (which includes Brazil, Argentina, Bolivia, Paraguay, and Uruguay), aiming to increase tariff preferences and cover both tariff and non-tariff issues. The goal is ambitious: raise bilateral trade to $20 billion by 2030, up from $12 billion last year. According to a joint statement after meetings between Brazil’s Vice President Geraldo Alckmin and India’s Minister of Commerce and Industry Piyush Goyal, this expansion will strengthen economic ties and give the Global South greater negotiating power amid the uncertainty caused by US tariffs.
“This is a partnership of weight and complementarity. There is a reason to be together because their interests coincide, but it is also in the interest of humankind,” said Manjeev Puri, India’s former ambassador to the European Union, in an interview with This Week in Asia. Both India and Brazil have been vocal advocates for the interests of developing nations in international forums like BRICS and the G20, focusing on issues such as food security, health, digital infrastructure, and humanitarian aid. Brazil, for its part, has brought food security and health to the table at multilateral meetings, while India has championed the inclusion of the African Union in the G20 and promoted digital infrastructure sharing.
The energy sector is another area where India and Brazil are deepening ties. During the recent visit, India’s Petroleum Minister Hardeep Singh Puri highlighted expanding partnerships, including long-term crude supply contracts with Brazil’s Petrobras and Indian investments exceeding $3.5 billion in Brazil’s upstream sector. Discussions also touched on opportunities in exploration, production, and deep and ultra-deepwater activities. “Our conversation focused on the expanding energy partnership between India and Brazil, from robust bilateral trade in hydrocarbons and long-term crude supply contracts with Petrobras to Indian investments worth over USD 3.5 billion in Brazil’s upstream sector, making it India’s largest investment destination in the Americas,” Puri stated after the meeting.
Defence and technology cooperation are also on the agenda. Brazil’s Defence Minister Jose Mucio Monteiro Filho met with India’s Defence Minister Rajnath Singh to review the multifaceted defence relationship between the two countries. They discussed military-to-military cooperation, joint exercises, training visits, and the co-development and co-production of defence equipment. The Ministry of Defence emphasized that “the leaders reviewed the progress of ongoing defence-related initiatives and identified priority areas for joint work, including exploring opportunities for co-development and co-production of defence equipment.”
Experts point to additional opportunities for collaboration, particularly in biofuels and aviation. Brazil’s pioneering work in sugar cane-based biofuels could help India reduce its dependence on crude oil imports, historically a major strain on its foreign exchange reserves. The aviation sector is also seeing increased interaction, with Brazilian aerospace major Embraer establishing a presence in Delhi and its aircraft already in use by the Indian Air Force and commercial airline Star Air.
As BRICS expands and member nations like India and Brazil forge closer ties, the global economic center of gravity is unmistakably shifting. The United States, while still a formidable player, faces a future where its dominance is no longer assured. The challenge for Washington is clear: adapt by investing in overseas infrastructure, securing new trade agreements, and ensuring American companies can compete in these emerging corridors. The world’s trade arteries are being redirected, and the economic heart is beating ever stronger in the Global South.
