Balancing Global South Interests and Western Alliances
At the IT-BT Round Table 2025, India's Commerce Minister Piyush Goyal firmly rejected any proposal for a BRICS currency. He emphasized that India has no plans for a shared currency with China, highlighting the impossibility of such a concept. This stance aligns with India's broader BRICS strategy, balancing engagement with the Global South while safeguarding its economic ties with the United States.
External Affairs Minister S. Jaishankar echoed this sentiment, stating that India sees no merit in replacing the U.S. dollar but supports localized currency settlements with BRICS nations like Russia. As BRICS expands with Indonesia as its 10th member, India treads cautiously, ensuring its global positioning remains stable amidst rising geopolitical and economic tensions.
India's approach to BRICS remains measured and pragmatic. It leverages the platform to amplify Global South interests while maintaining Western alliances like QUAD.
BRICS is witnessing a major shift with Indonesia's membership and Nigeria's partnership role. Malaysia, Thailand, and Vietnam have also shown interest, signaling a broader ASEAN expansion within BRICS. Under Brazil's 2025 presidency, the bloc focuses on climate finance, AI cooperation, and sustainable governance, alongside ongoing talks on alternative payment systems.
However, key divisions persist. Russia and China push for de-dollarization, while India and Brazil remain cautious, wary of the economic fallout of moving away from the U.S. financial system.
Adding further complexity, Donald Trump has warned BRICS members against backing a new currency, threatening 100% tariffs on those seeking to replace the dollar. He calls BRICS "seemingly hostile," presenting a significant challenge for India, given its $127 billion in annual exports to the U.S. This makes any move away from the dollar a risky economic decision.
With Indonesia's membership introducing new dynamics, BRICS faces a challenge in balancing anti-Western rhetoric with practical economic cooperation. India remains focused on leveraging the bloc for strategic gains without provoking U.S. retaliation. As Brazil takes charge of BRICS in 2025, the bloc's future will depend on whether it can reconcile internal disagreements while navigating mounting global economic pressures.