Catenaa, Tuesday, July 22, 2025-India on Thursday clarified that it does not support the BRICS initiative to reduce reliance on the US dollar, despite growing calls from developing nations to shift toward local currencies.
The clarification comes days after the 17th BRICS summit held in Brazil, where member nations discussed trade and cross-border payment systems.
External Affairs Minister Randhir Jaiswal said de-dollarization is not part of the current BRICS agenda and dismissed speculation about the formation of a common BRICS currency.
He acknowledged that member countries had considered local currency settlements for trade but firmly stated that India would not support efforts to marginalize the US dollar.
India’s position is seen as a balancing act between BRICS aspirations and economic ties with the United States.
The country’s technology and service sectors are heavily reliant on US partnerships, which indirectly finance housing and other domestic industries.
Jaiswal stressed that the summit, led by Prime Minister Narendra Modi, was a diplomatic success but emphasized that any future currency arrangements will be subject to further negotiation. India’s insistence on local currency use reflects a broader strategy to elevate the rupee without destabilizing existing economic alliances.
The remarks follow China’s announcement of $855 billion in BRICS-linked deals this year, underscoring growing economic divergence within the bloc.
