India has decided to go against its BRICS allies by refusing to follow the de-dollarization agenda. Foreign Minister S. Jaishankar said India will not target the U.S. dollar and only use local currencies when it makes sense.
This decision puts it at odds with China and Russia, who have been leading the push to move away from the dollar.
Inside sources from India say that the country is actually concerned about China’s growing control within the group. You see, the former believes the latter is using the bloc to expand its global power and is not about to support that.
India pushes back on de-dollarization and Pakistan’s entry
In an official statement, Jaishankar explained India’s stance:
“We have never actively targeted the U.S. dollar.”
At the same time, Pakistan has been trying to join BRICS, adding even more pressure to the situation. The country first applied for membership in late 2023, hoping for support from the members.
Russia, which has a close relationship with Pakistan, has already thrown its weight behind the bid. The BRICS summit, set for October 22-24, in Kazan, Russia, will discuss the potential membership.
Pakistan sees joining the alternative group of nations as a way to stabilize its struggling economy. The country’s GDP growth dropped from 5% in 2022 to just over 2% in 2023-2024, and its debt-to-GDP ratio is nearing 75%.
India and Pakistan have a long history of tensions, and many analysts think India will block Pakistan’s entry into BRICS.
India might see this move as another way for China to increase its influence in the group, especially given the close ties between China and Pakistan.
New Delhi sees both countries as strategic threats and would prefer to limit their roles in BRICS.
Economic stakes for Pakistan in BRICS
Pakistan hopes BRICS membership will open the door to new markets and financial resources, particularly through the New Development Bank (NDB).
Unlike the International Monetary Fund (IMF), the NDB offers loans with fewer conditions, which would be a relief for Pakistan.
Russian Deputy Prime Minister Alexei Overchuk recently visited Islamabad and confirmed that Moscow supports Pakistan’s membership.
If Pakistan gets in, it could benefit from stronger trade ties with BRICS countries, which produce 40% of the world’s oil and 42% of its grain. This would help Pakistan diversify its trade and improve food security.
But the group operates on a consensus basis, meaning all current members must agree to admit new ones. This gives India the power to block Pakistan’s application.
