Amid rising tensions with the Trump administration, India on Thursday clearly stated that it will not pursue de-dollarisation. The Ministry of External Affairs (MEA) dismissed claims that India plans to reduce its dependence on the US dollar within BRICS.

MEA spokesperson Randhir Jaiswal said, “We have made our position very clear on this issue earlier as well. De-dollarisation is not part of India’s financial agenda.”

Context: US-India Tensions

Meanwhile, relations between India and the US have worsened after President Trump announced nearly 50% tariffs on Indian goods. The White House argued the tariffs targeted India’s purchases of Russian oil during the Ukraine war. Moreover, senior US officials accused India of indirectly helping Russia.

In addition, Trump has opposed de-dollarisation and repeatedly warned of serious consequences if countries pursued it.

Brazil Pushes for a BRICS Currency

In contrast, Brazilian President Luiz Inacio Lula da Silva suggested that BRICS nations could explore an alternative trade currency. He said testing the idea could strengthen trade within the group.

“We can discuss in the BRICS. There is a need to have a trade currency between us and the BRICS. I do not reject it because we must test; if the testing fails, then I would be wrong. But someone has to convince me that I am wrong,” Lula said.

Furthermore, Lula is scheduled to visit India in January next year. When asked if Prime Minister Narendra Modi invited him, Jaiswal said, “We had gone to Rio to attend the BRICS summit. We also paid a state visit to Brasilia. And at that time, the Prime Minister, as is normal in bilateral ties, invited President Lula to visit India at an appropriate time.”

US Tariffs on Brazil and Broader Context

Meanwhile, Trump also announced a 50% tariff on imports from Brazil starting August 1. He criticized the trial of former Brazilian President Jair Bolsonaro, calling it a “witch hunt” that “should not take place.”

Despite these tensions, India said it will continue engaging with BRICS countries on shared interests. At the same time, it will safeguard its economic and strategic priorities.

“India is a member of the BRICS group, and we continue to remain in touch with member countries to discuss issues of shared interest,” Jaiswal said.