While India supports reducing dollar reliance, it is wary of the growing influence of the Chinese Yuan within BRICS. Russia’s increasing use of Yuan in its economy has raised concerns for India. However, instead of adopting the Yuan for trade, India has opted to diversify its reserves, including an increased focus on gold.

RBI Governor Shaktikanta Das clarified in December 2024, “The initiative is not aimed at dethroning the dollar but at mitigating risks to Indian trade.”

Balancing Act: India’s Strategy in BRICS

India’s approach within BRICS reflects a balancing act—challenging dollar dominance while ensuring no single country, particularly China, gains undue advantage. Experts believe this is a calculated strategy to counterbalance China’s influence and ensure India’s leadership role in the bloc.

At the same time, India has managed to maintain strong ties with the US, showing its capability to balance its global alliances. By promoting financial multipolarity and reducing dependency on any single currency, India is paving the way for greater global financial stability.

Conclusion

India’s initiatives in BRICS are a testament to its growing economic and diplomatic clout. By reducing dollar dependency and strategically handling the Yuan’s influence, India is not only strengthening its position within BRICS but also contributing to a more balanced global financial order. As the world shifts towards multipolarity, India is poised to play a key role in shaping this new economic landscape.