India US dollar BRICS relations are actually facing a major shift right now as New Delhi firmly rejects complete de-dollarization while also expanding rupee trade networks. The Indian government has just dismissed speculation about abandoning the dollar, even as BRICS explores alternative currencies at the moment. This strategic positioning allows India to reduce dollar dependency selectively through bilateral agreements while maintaining global financial access. India rejects de-dollarization as wholesale policy, instead pursuing targeted rupee settlements with partners like the Maldives and UAE.
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India Rupee Trade Push And BRICS vs US Dollar Strategy
Official Stance on Currency Policy
MEA spokesperson Randhir Jaiswal clarified India’s position during a weekly media briefing . He mentioned:
“We have made our position very clear on this issue earlier as well. De-dollarization is not part of India’s financial agenda.”
His remarks were made in response to Brazilian President Lula’s suggestion for a BRICS trade currency amid US tariff tensions. India rejects de-dollarization completely, preferring selective currency diversification through bilateral partnerships instead.
External Affairs Minister S. Jaishankar also stated:
“India is a member of the Brics group, and we continue to remain in touch with member countries to discuss issues of shared interest.”
Bilateral Rupee Trade Expansion
Source: The Economic Times
India has actually signed currency agreements with strategic partners, moving beyond BRICS vs US dollar debates. The Reserve Bank of India established direct settlement mechanisms with the Maldives in November 2024, allowing transactions in rupees and rufiyaa without dollar conversion at all.
RBI Deputy Governor Sanjay Malhotra noted operational arrangements with the UAE, along with other Asian and African countries currently in negotiations. This India rupee trade system reduces transaction costs and also foreign exchange exposure for businesses right now.
Strategic Positioning Within BRICS Ditching US Dollar Framework
The strategy of India is not quite similar to the emphasis of currency alternatives by all the BRICS member countries. Whereas China pumps up e-yuan and Russia pumps up the ruble under sanctions, India does not show excessive independence. There is geographical disparity and a lack of economic integration that prevents the possibility of a common BRICS currency as argued by the country.
This India rupee trade policy retains financial independence and grows on the foreign front. With bilateral agreements, less infrastructure is necessary in comparison with multilateral currency endeavors, hence, the ability of India to operate within the BRICS and US dollar tensions on a practical level.
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At writing, the pragmatic currency policy is evident through the calculated approach of India toward India US dollar BRICS relations. New Delhi keeps its financial options open by refusing wholesale de-dollarization, but increasing rupee settlement. Such a maneuver uniquely places India in the bloc to reduce selected dollar without giving up the global market access.
