Will the BRICS push for de-dollarisation inadvertently benefit China?
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Amit Kumar
India is hosting the 18th BRICS summit, with Russian President Vladimir Putin arriving for bilateral talks with PM Modi. The summit focuses on economic resilience, innovation, and the strategic debate surrounding de-dollarisation in global trade.
India Hosts the 18th BRICS Summit: A Strategic Crossroads
India has assumed the mantle of the BRICS chair, hosting the 18th summit amidst a complex geopolitical landscape. The arrival of Russian President Vladimir Putin in New Delhi for bilateral discussions with Prime Minister Narendra Modi underscores the significance of this event. As India steers the agenda, the summit serves as a critical platform for discussing the future of economic cooperation and the structural challenges facing emerging markets.
The Strategic Push for De-dollarisation
A central theme gaining momentum at this summit is the concept of de-dollarisation—the movement to shift trade invoicing, payment settlements, and reserve holdings away from the U.S. dollar. For nations like Russia and China, this is not merely an economic preference but a strategic imperative to mitigate the risks associated with American financial hegemony. These motivations have intensified significantly following the sanctions imposed on Russia after its invasion of Ukraine, which highlighted the vulnerabilities of relying on dollar-denominated financial infrastructure.
India’s Energy Security and Financial Vulnerabilities
While China and Russia view de-dollarisation through a lens of systemic power, India’s interest is rooted in pragmatic economic security. India remains a net importer of crude oil, fulfilling 88% of its domestic energy requirements through imports. This heavy reliance exposes the Indian economy to external shocks and currency fluctuations. Consequently, exploring alternative payment mechanisms is a matter of national interest for New Delhi as it seeks to insulate its energy sector from global volatility.
Global Corporate Engagement and Future Resilience
The summit is set to host approximately 1,000 international delegates for a forum centered on the themes of resilience, innovation, cooperation, and sustainability. High-profile corporate entities, including Huawei, Alibaba, the Industrial and Commercial Bank of China (ICBC), and Emirates, are among those expected to attend. The involvement of such diverse global players highlights the BRICS platform’s evolution into a significant venue for international business diplomacy.
Leadership and Diplomatic Outlook
The business forum will feature opening addresses by Minister of Commerce and Industry Piyush Goyal and Minister of External Affairs S Jaishankar. Their participation signals the Indian government’s commitment to fostering a dialogue that bridges policy with private sector innovation. Prime Minister Modi’s address to the business forum is highly anticipated, as it will likely outline India’s vision for a more integrated and resilient BRICS economic bloc.
Conclusion: Assessing the Path Forward
The 18th BRICS summit represents a pivotal moment for international economic policy. By balancing the competing interests of its members—ranging from energy security to the desire for a multi-polar financial order—India is positioning itself as a central mediator. The outcomes of these discussions will likely shape trade relations and financial strategies among emerging economies for years to come.
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