India’s de-dollarization policy has recently gained a lot of attention, especially as many nations around the world are actually exploring various options for currency diversification in their international trade systems. At the time of writing, External Affairs Minister S. Jaishankar has also clarified the country’s stance during his recent UK visit. Despite the ongoing global trends toward currency diversification, India still maintains its firm support for US dollar dominance while, at the same time, working on rupee internationalization as well.

Jaishankar stated:

I don’t think there’s any policy on our part to replace the dollar. As I said, at the end of the day, the dollar as the reserve currency is the source of international economic stability, and right now, what we want in the world is more economic stability, not less.

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India’s Major Economy De-Dollarization Policy: Why Rejecting De-Dollarization and Embracing the US Dollar Makes Sense

BRICS and De-Dollarization: No Unified Approach

Contrary to all the widespread speculation that we’ve been seeing lately, BRICS nations actually hold quite diverse positions on global currency shift. The expanded ten-member bloc lacks any kind of coordinated economic strategy against the dollar.

Jaishankar explained:

I would also say in all honesty, I don’t think there’s a unified BRICS position on this. I think BRICS members, and now that we have more members, have very diverse positions on this matter. So the suggestion or the assumption that somewhere there is a united BRICS position against the dollar I think is not borne out by facts.

The BRICS grouping, which was established back in 2009, now comprises ten nations without US membership, and this has sparked numerous discussions and debates about its position on US dollar dominance in global finance.

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India’s Rupee Internationalization Strategy

While India’s de-dollarization policy essentially rejects replacing the dollar, the nation is still actively promoting rupee internationalization as an important part of its currency diversification efforts and general economic approach.

Jaishankar noted:

We are clearly promoting the internationalisation of the rupee because we are actively globalising India. More Indians are travelling and living abroad, and India’s trade and investment sectors have expanded. As a result, the use of the rupee will also grow.

India has, in fact, established several mechanisms for rupee-based transactions with various countries, particularly helping those facing hard currency shortages.

The minister added:

In many cases, we have established mechanisms for cashless payments between India and other countries and have supported trade settlements, particularly in nations facing a shortage of hard currency, especially dollars.

Trump’s Dollar Defense and India’s Response

US President Trump has, on multiple occasions, threatened rather severe consequences for countries attempting any form of de-dollarization, including potential tariffs up to 150% on BRICS nations pursuing such economic strategy.

India’s response to this situation remains pragmatic and measured, emphasizing cooperation rather than competition in the ongoing global currency shift discussions.

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Jaishankar emphasized:

We have no issue with the dollar, and our relations with the US are at their best. We have no interest in undermining the dollar.

A Multipolar Vision Aligning with India’s Interests

This major economy’s de-dollarization policy aligns quite well with its broader geopolitical vision and long-term goals. The country definitely sees value in a multipolar world while also maintaining strong US ties at the same time.

Jaishankar told PTI:

When I look at our interests and expectations for the relationship, I see a lot of promise. Conceptually, I believe we are seeing a president and administration that, in our parlance, are moving toward multipolarity. This is something that suits India.

He further stressed:

We do believe today that working with the United States and strengthening the international financial system and economic system is actually what should be the priority.

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India’s approach to currency diversification represents a balanced and thoughtful strategy that promotes rupee internationalization while also acknowledging the dollar’s crucial role in global economic stability. This pragmatic stance on US dollar dominance reflects India’s long-term interests in a multipolar world order without disrupting international financial systems and existing economic relationships.