India Signs UNIDO Pact to Support Manufacturing, MSMEs Under BRICS Framework

India on Wednesday formally became part of the BRICS Centre for Industrial Competencies (BCIC), a multilateral initiative aimed at strengthening manufacturing ecosystems and supporting micro, small, and medium enterprises (MSMEs) across BRICS countries. The announcement was made at an event organised by the Department for Promotion of Industry and Internal Trade (DPIIT) at Vanijya Bhavan, New Delhi.

The BCIC has been developed in partnership with the United Nations Industrial Development Organization (UNIDO) and is intended to function as a common platform providing integrated industrial support services, with a strong focus on digital manufacturing, automation, and Industry 4.0 capabilities.

Agreement Signed To Operationalise India’s Participation 

India’s participation was formalised through the signing of a Trust Fund Agreement between DPIIT and UNIDO. The agreement was signed by Agrim Kaushal, Economic Adviser at DPIIT, and Dr Cristiano Pasini, Director at UNIDO, enabling structured cooperation under the BCIC framework.

Officials said the agreement provides the institutional foundation for India’s engagement with BCIC programmes covering technology adoption, productivity improvement, and capacity building for enterprises.

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NPC Designated As India’s BCIC Centre

The government has designated the National Productivity Council (NPC) as the India Centre for BRICS Industrial Competencies. Operating under the policy guidance of DPIIT and supported technically by UNIDO, NPC will coordinate India’s participation in BCIC-led initiatives.

NPC’s mandate will include promoting productivity enhancement, facilitating training programmes, and supporting the adoption of advanced manufacturing practices, particularly among MSMEs.

Why BCIC matters for India’s MSMEs? 

India’s MSME sector forms a critical pillar of the economy, accounting for nearly 30% of India’s GDP, around 45% of merchandise exports, and employing over 110 million people across manufacturing and services. Despite its scale, the sector continues to face challenges related to technology adoption, productivity gaps, and access to global best practices.

Officials said participation in the BCIC framework will enable Indian MSMEs to benefit from cross-country knowledge sharing, exposure to advanced manufacturing models, and collaboration within BRICS industrial networks.

The BRICS grouping represents a significant share of the global economy, contributing over one-third of global GDP in purchasing power parity terms and housing more than 40% of the world’s population. Manufacturing cooperation under the BRICS framework is seen as a key driver for strengthening supply chains and industrial resilience among member countries.

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