According to a policy paper of IMF, the value of LIC-BRIC trade has grown six-fold over the past decade. As bilateral trade has expanded, financial flows from BRICs to LICs — both in the form of foreign direct investment and development financing — have also increased rapidly.
The report said while improved macro-economic management has been critical to this strong economic performance, the more favourable external environment — the emergence of BRIC was an important contributing factor.
The IMF policy paper states, there is potential to further increase LIC-BRIC trade by lowering tariff and non-tariff barriers on both sides, reducing tariff escalation, extending preferential access for LIC exports, and making rules of origin more liberal in the existing preference schemes.