Virtual Trade Corridors Could Boost BRICS Connectivity, Says RITES Chief
RITES Chairman Rahul Mithal said digital trade corridors could help BRICS countries improve cross-border commerce while physical infrastructure is still being developed.
India could use digital or virtual trade corridors to make cross-border commerce faster and more efficient while physical infrastructure across BRICS countries continues to develop, RITES Chairman and Managing Director Rahul Mithal said at the India Today BRICS Roundtable in New Delhi.
Mithal said several international trade corridors are currently being explored or developed, but significant infrastructure gaps still need to be addressed before they can operate at their full potential. Closing those gaps will require substantial investment, making digital connectivity an important complementary option.
India, given its participation in several international groupings, is well positioned to benefit from emerging trade routes and connectivity initiatives.
Physical infrastructure such as roads, railways and ports can take years to construct and requires considerable capital. Digital trade corridors, by contrast, can begin connecting stakeholders much sooner by enabling more efficient exchange of information between countries.
Mithal cited the India-UAE virtual trade corridor as an example. RITES began working on the initiative after an agreement was signed in 2024 to explore a digital corridor along the India-UAE segment of the India-Middle East-Europe Economic Corridor.
The initiative aims to simplify trade by digitally connecting stakeholders involved in cross-border transactions, including customs authorities, ports, exporters, importers and customs agents.
Improving the way data is exchanged could be an important first step towards making international trade more efficient, particularly in regions where physical connectivity remains under development.
Artificial intelligence could further help expand virtual trade corridors across countries and trade routes. International commerce involves large volumes of messages, forms and data fields, while different countries may collect similar information using different formats and systems.
AI could help map these varying data structures and make it easier to integrate information across multiple jurisdictions. This could allow digital trade systems to be expanded more efficiently as additional countries and corridors are brought into the network.
RITES, which has more than five decades of experience in infrastructure consultancy, is also expanding its international business beyond its traditional markets in Africa and neighbouring South Asian countries.
The company has been increasing its presence in Latin America and West Asia, where markets such as the UAE and Jordan are developing railway, metro and port infrastructure. Mithal said these regions could provide significant opportunities for the company.
He also emphasised that artificial intelligence should complement human expertise rather than simply replace it. RITES is already using AI-based visual inspection systems to assist engineers in identifying potential railway failure points using information from previous projects.
For BRICS, Mithal said the immediate priority should be to make cross-border trade simpler and more efficient. Smaller bilateral initiatives, including virtual trade corridors, could provide a practical starting point for countries to build confidence and eventually move towards broader multilateral connectivity.
The combination of digital infrastructure, AI and physical transport networks could therefore help BRICS countries strengthen trade links while addressing the time and investment challenges associated with building traditional infrastructure.
