As Chair of BRICS, India is likely to focus on matters concerning the Global South. This includes: reforms of multilateral institutions, technology, environmental issues, and boosting trade. However, New Delhi is unlikely to adopt an ‘anti-US’ or ‘anti-western’ stance. By not reacting impulsively to the Trump administration’s statements, it has sent out a message that while standing its ground, it firmly understands the importance of the US-India relationship
In the backdrop of ongoing debates over de-dollarisation and the push for greater financial autonomy among emerging economies, Brazilian President Luiz Inácio Lula da Silva, popularly known as Lula, has reiterated his call for a common BRICS currency.
Lula said, “…we can have a currency for trade in BRICS — it’s an idea we have to test.” He added that Brazil could not “depend” upon the Dollar, while clarifying that the intention was not to undermine the US currency.
This is not the first time Lula has floated the proposal. In 2023, he argued that a shared BRICS currency would expand payment options for BRICS+ member states while also reducing their economic vulnerabilities.
India’s opposition to a BRICS common currency
Some countries within BRICS have supported the idea of a BRICS common currency. India, one of the founding members of BRICS+, however, has opposed the idea of a common currency on more than one occasion. Weeks before taking over as US President, Donald Trump had warned that the US would impose 100% tariffs against BRICS countries – including India. In response, India clarified that it did not support the idea of a BRICS currency and did not seek to “weaken” the US Dollar in any manner
With the downturn in US-India ties after Washington announced an additional 25% tariffs on India for the purchase of Russian oil, there has been increasing talk of India significantly reorienting its foreign policy. This includes a stronger focus on BRICS — especially since India will be assuming BRICS Chairmanship in 2026 and an effort towards reducing tensions with China, which have escalated in recent years.
The visit of PM Modi to China, later this month, in connection with the Shanghai Cooperation Organisation (SCO) meet and other high-level meetings between officials of both countries, is being cited as evidence of India seeking to mend ties with China. In the context of BRICS, PM Modi has said that during its Chairmanship (in 2026), India would articulate important matters about the Global South and also focus on greater cooperation between members in areas like climate change, technology, and sustainable financing.
Also Read: ASEAN member states’ engagement with BRICS: Opportunities and Roadblocks
While India itself has been seeking to build trade in local currencies, as mentioned earlier, it has recently again distanced itself unequivocally from the idea of “de-dollarisation”.
A few points need to be borne in mind:
First, while BRICS countries are working towards a payment system, referred to as BRICS pay, the idea of a BRICS currency is both economically and geopolitically unfeasible given the uncertain ties between members within BRICS – especially between India and China. When the Brazilian President first proposed the idea in 2023, South Africa described the common BRICS currency as a “political project” which was impossible to achieve in logistical terms. With the expansion of the organisation, building consensus has become tougher since new members have varying foreign policy orientations.
Second, the changing geopolitical order will not necessarily lead countries to reorient their economic policies drastically. While there will be an emphasis on reducing dependence upon the US, several countries are likely to be cautious and may take a long-term perspective on issues.
Third, India, by not reacting impulsively to the Trump administration’s statements, has sent out a message that while standing its ground, it firmly understands the importance of the US-India relationship, which has strengthened over the last 25 years and has bipartisan support in both countries. Several US Politicians, including those belonging to the Republican Party, have also criticised Donald Trump’s decision to impose sanctions on India, arguing that this step could impact the bilateral relationship and push India closer to Russia. A US Democrats Panel also said: “Tariffing India won’t stop Putin. If Trump wanted to address Russia’s illegal invasion of Ukraine, maybe punish Putin and give Ukraine the military aid it needs. Everything else is smoke and mirrors.”
On August 15, 2025, the US President gave the impression that he may reconsider his decision regarding sanctions on India for buying Russian oil.
In conclusion, as Chair of BRICS, India is likely to focus on matters concerning the Global South. This includes: reforms of multilateral institutions, technology, environmental issues, and giving a fillip to trade. However, New Delhi is unlikely to adopt an ‘anti-US’ or ‘anti-western’ stance. There is a clear realisation in India that, despite some recent differences with Washington, it is important to take a long-term view and not be impulsive. While India’s ties with China may have witnessed an improvement in recent times, most policy makers as well as strategic commentators in India are cautious, since several differences – in the geopolitical and economic domain — between both countries persist.
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