During Modi-Trump talks, de-dollarisation, BRICS expansion, and economic cooperation will be key topics. India maintains a firm stance against moving away from the US dollar while engaging in discussions about local currency trade. Despite BRICS exploring alternatives, India emphasizes economic stability and cautious engagement with the US and BRICS nations.
During the upcoming meeting on February 13, 2025, between Prime Minister Narendra Modi and US President Donald Trump, critical topics such as de-dollarisation, BRICS expansion, and global economic cooperation will be discussed. De-dollarisation refers to reducing reliance on the US dollar in international trade, and while BRICS nations are exploring alternative currencies, India has emphasized that it does not have a strategy to move away from the dollar.
India’s position was reaffirmed by Randhir Jaiswal, spokesperson for the Ministry of External Affairs, who stated, “On de-dollarisation, the External Affairs Minister has made it clear that we don’t have any policy or strategy in this regard.” External Affairs Minister S. Jaishankar also noted that targeting the dollar is not part of India’s economic or strategic policy.
Despite being aware of the de-dollarisation trend, India approaches it cautiously, particularly in the context of nations under US sanctions. Although some BRICS countries are considering local currencies and alternatives like the Chinese yuan, India maintains its support for the US dollar, particularly when trading with Russia.
The BRICS nations have been seeking ways to lessen USD dependence, as outlined by Russian President Vladimir Putin during the 2023 BRICS Summit. However, the establishment of a new BRICS currency is unlikely in the near future due to the lack of a unified trade policy among member nations, contrasting significantly with the European Union’s approach.
Prime Minister Modi emphasized that while India backs local currency trade and smoother cross-border transactions, it has not targeted the US dollar in its trade practices. Meanwhile, President Trump has issued strong warnings, stating, “We are going to require a commitment from these seemingly hostile countries that they will neither create a new BRICS Currency, nor back any other currency to replace the mighty US Dollar or, they will face 100% Tariffs.”
India’s strategy regarding de-dollarisation is influenced by its desire for economic stability and the need to balance relations between the US and other BRICS nations. Although supportive of local currency initiatives, India remains cautious of China’s increasing influence within BRICS.
Ajay Sahai, CEO of the Federation of Indian Export Organisations, emphasized that initiatives involving local currencies should not unduly favor China. He noted the significance of India’s relationship with the US and the need for diplomatic solutions to economic disputes, which focus on negotiation over confrontation.
In summary, while BRICS enhances global trade cooperation, India is committed to balancing its domestic priorities with international obligations, maintaining its position on the US dollar as a key component of its economic policy.
India’s approach to de-dollarisation reflects its commitment to economic stability and balancing international relationships. While it recognizes the ambitions of BRICS nations to explore alternatives, India’s focus remains on protecting its economic interests and maintaining strong ties with the US. The potential impact of US tariffs on BRICS currency initiatives underscores the complexity of this geopolitical landscape.
Original Source: www.financialexpress.com
