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BRICS leaders meet in Delhi as India charts a cautious path on currency reform and global trade (Img: Pinterest)
As India hosts the 18th BRICS Summit, the debate over reducing dependence on the US dollar has once again gained momentum. While countries like China and Russia have supported the idea of a stronger alternative financial system, India is taking a more cautious approach.
New Delhi is not backing a complete shift away from the dollar. Instead, India is focusing on practical solutions such as improving cross-border payments and linking digital currency systems among BRICS nations.
India believes that creating a common BRICS currency is a difficult task due to differences in economic structures, monetary policies and trade priorities among member countries.
The government’s approach is aimed at making international transactions easier rather than replacing the dollar completely. A possible connection between central bank digital currencies of BRICS nations could help reduce payment delays and transaction costs.
One of the biggest hurdles for India’s local currency trade push is the imbalance in BRICS trade. India’s trade deficit with other BRICS members has crossed $226 billion, meaning the country imports significantly more than it exports to these nations.
Experts believe that changing the currency used for payments alone cannot solve the problem unless trade between member countries becomes more balanced.
India’s position reflects its broader foreign policy strategy of maintaining relations with multiple global powers. While it remains an important BRICS member, it also continues economic and strategic cooperation with the US and other Western partners.
The BRICS Summit 2026 is expected to discuss financial cooperation, payment systems, energy security and global economic challenges. However, India’s message is clear — improving financial connectivity is the priority, not immediately replacing the dollar.
