India has firmly stated its position within the BRICS group, distancing itself from any initiative to weaken the US dollar or introduce a common BRICS currency.
This stance comes amidst recent threats from former US President Donald Trump, who warned of a 100% tariff on imports from BRICS nations if any efforts to challenge the dominance of the dollar were made.
External Affairs Minister S Jaishankar addressed the matter in Parliament, highlighting India’s role as a founding member of BRICS and its commitment to the group’s objectives.
He emphasised that BRICS is a platform that seeks to address the collective concerns of its members and promote a more inclusive approach to global governance.
Jaishankar asserted that India’s association with BRICS is rooted in constructive collaboration rather than any attempt to undermine the global financial system.
The External Affairs Minister responded to a written question in the Lok Sabha regarding Trump’s warning.
He explained that BRICS has grown in membership and expanded its agenda over the past two decades, with the intention of enhancing mutual understanding among the international community.
Jaishankar stressed that India’s engagement with BRICS focuses on strengthening multilateral cooperation and finding common ground on pressing global issues.
However, Jaishankar made it clear that India does not support any moves within BRICS to reduce reliance on the US dollar. He reiterated that challenging the dominance of the dollar is not part of India’s economic or strategic policy.
This position has been conveyed to US authorities during bilateral discussions, ensuring transparency in India’s approach.
“Understandably, as nations at different levels of development and income, and bearing in mind their individual national interests, BRICS members have a range of positions on contemporary issues,” Jaishankar said.
He explained that while BRICS members may explore alternative financial mechanisms, India remains focused on constructive engagement and maintaining global financial stability.
The former US President, Donald Trump, has frequently criticised BRICS, going as far as to declare the group “dead.” In a recent statement, Trump warned of severe economic consequences if BRICS nations attempted to challenge the dollar’s supremacy.
He cautioned that a move to establish a common BRICS currency would result in a 100% tariff on all imports to the United States.
“BRICS was put there for a bad purpose… I told them if they want to play games with the dollar, then they are going to be hit by a 100% tariff. The day they mention that they want to do it, they will come back and say — we beg you, we beg you. BRICS is dead since I mentioned that,” Trump declared.
The idea of reducing reliance on the dollar within BRICS has been a topic of discussion, particularly among Russia and China. Russian President Vladimir Putin has previously called for “de-dollarisation” and encouraged BRICS members to increase trade using national currencies.
In June 2024, during a meeting of BRICS foreign ministers in Nizhny Novgorod, the group reiterated its commitment to expanding the use of local currencies in trade and financial transactions.
