In the dynamic landscape of global finance, where the BRICS alliance is sharpening its talons, aiming at the soft underbelly of the US dollar’s supremacy, India emerges as a beacon of hope for the greenback.
While the BRICS coalition might assume they have the unwavering support of all its members in their quest to topple the dollar, India’s economic trajectory and diplomatic allegiances paint a different picture.
The Double-edged Sword of BRICS Membership
The BRICS alliance, a congregation of developing nations, fervently seeks to strip the US dollar of its long-held global reserve currency crown. China and Russia, two influential powerhouses within the coalition, fervently champion the cause of complete de-dollarization.
Their motives, however, seem less than altruistic to the more observant members of the bloc. There’s growing speculation, and not without foundation, that China and Russia might be weaponizing BRICS for their own de-dollarization designs.
Yet, not all members are ready to jump aboard the de-dollarization express. Nations like South Africa, Brazil, and notably, India, tread with caution. Their reluctance stems from a wariness of the rising dragon—China—and its designs for power consolidation.
The geopolitical rumblings indicate that these countries, India in particular, are not ready to jeopardize their economic health and international relations for a vision that reeks of ulterior motives.
India’s American Anchor
Boasting one of the most rapidly expanding economies globally, with a GDP already crossing the $3.75 trillion mark this year, India’s economic momentum is undeniable.
Forecasts from Goldman Sachs even suggest the possibility of India’s GDP eclipsing that of the U.S. in the distant future. But does that mean India would jeopardize its flourishing economic relationship with the U.S. for BRICS? Highly unlikely.
With the U.S. relying on India as its primary provider for IT back-end support, the stakes are high. The economic tapestry between the two nations is rich and intricate. A mere whimper of India severing its dollar dependencies could jeopardize millions of jobs and stir the cauldron of economic turbulence.
Layered on top is a tapestry of billion-dollar trade deals binding India to the U.S., forming an economic tether too strong to be severed for the whims of BRICS.
While the U.S. and India share a mutually beneficial economic relationship, it’s not just about numbers. Their bond is cemented by shared values, aspirations, and mutual respect.
Conversely, India’s relationship with China is riddled with border disputes and trade disagreements, with diplomatic solutions still floating in the realm of uncertainty.
Given this, it seems preposterous to assume that India would blindly follow China’s economic dictats, especially when it threatens India’s own prosperous trajectory.
Jim O’Neill, the very mind behind the BRIC acronym, pointed out the palpable discord between India and China. The idea of these two Asian giants, with their stark differences and disagreements, committing to a shared vision of currency seems far-fetched, if not outright fantastical.
Bottomline is as the world watches the BRICS alliance with bated breath, the discerning eye is on India. Will it uphold the sanctity of its economic commitments, or will it waver under the weight of BRICS’ ambitions? For now, it seems India might just be the linchpin keeping the US dollar’s dominance from toppling.
