As the tariff threats grew stronger and Canada, Mexico, and China faced the heat, India slowly backtracked from the de-dollarization agenda. Of course, it will adamantly say its priority is to protect its economy from tariffs as it could impact the country’s imports and exports sector.
Foreign Minister Subrahmanyam Jaishankar (better known as S Jaishankar), made multiple statements this year citing that India has no plans of advancing the de-dollarization agenda. The about-face comes after Trump’s threatened tariffs. And India not only rejected de-dollarization but also embraced the US Dollar and thereby, contradicting the BRICS bloc’s ideology of ditching the US Dollar and kowtowing to Trump.
However, Thiago Bessimo, a governance researcher at the Hertie School in Berlin, Germany says that BRICS member India could be playing a double game with the US Dollar.
He explained that while India is distancing itself from de-dollarization, it is looking at alternatives to the US Dollar behind closed doors.
“Publicly, India distances itself from any initiative that could challenge the US Dollar”, Bessimo said. “But behind closed doors, (BRICS members) it explores alternatives that might reduce its reliance on Western financial systems”.
He added that India is maintaining a balance between BRICS and the US Dollar to safeguard its economic prospects. India needs US support as it hosts a major chunk of IT jobs in the country that generates wealth as well as opportunities. Without the US, India’s economy and its ever-growing GDP could face severe challenges. Therefore, it is walking on a tightrope.
Or is India trying to have the cake and eat it too? 😏😏😏
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