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There’s a lot of noise right now about America being “angry” with India. The headlines scream about BRICS plotting to kill the dollar, Trump threatening massive tariffs, and India caught somewhere in the middle. The truth is messier — and far more interesting — than the shouting suggests.
Let’s cut through the drama and look at what’s actually happening, in plain British English.
What Exactly Is BRICS?
BRICS started as a catchy acronym coined by a Goldman Sachs economist in 2001 to describe four fast-growing economies: Brazil, Russia, India, and China. South Africa joined in 2010, and the group has since expanded significantly, adding Iran, the UAE, Egypt, Ethiopia, and Indonesia .
Today, BRICS represents roughly 41% of the world’s population and about 26% of global trade . It was never designed as an anti-American club. It’s a forum for emerging economies to push for a bigger voice in global institutions like the IMF and World Bank.
But lately, the conversation has shifted. The loudest voices in the room — Russia and China — want to reduce dependence on the US dollar. And that’s where the trouble starts.
BRICS started as a catchy acronym coined by a Goldman Sachs economist in 2001 to describe four fast-growing economies: Brazil, Russia, India, and China. South Africa joined in 2010, and the group has since expanded significantly, adding Iran, the UAE, Egypt, Ethiopia, and Indonesia .
Today, BRICS represents roughly 41% of the world’s population and about 26% of global trade . It was never designed as an anti-American club. It’s a forum for emerging economies to push for a bigger voice in global institutions like the IMF and World Bank.
But lately, the conversation has shifted. The loudest voices in the room — Russia and China — want to reduce dependence on the US dollar. And that’s where the trouble starts.
What Is “De-Dollarisation” Anyway?
De-dollarisation simply means reducing reliance on the US dollar for international trade and finance. It doesn’t mean banning the dollar or creating a single “BRICS currency” overnight.
Why does the dollar matter so much? Because it’s the world’s primary reserve currency. Most global trade — especially oil — is priced and settled in dollars. Central banks hold dollars as a safety net. This gives America enormous power: it can freeze assets, cut countries off from the SWIFT payment system, and use the dollar as a geopolitical weapon .
Russia felt this firsthand after its 2022 invasion of Ukraine, when roughly $300 billion of its central bank reserves were frozen . That moment convinced many countries that dollar dependence is a risk, not just a convenience.
De-dollarisation simply means reducing reliance on the US dollar for international trade and finance. It doesn’t mean banning the dollar or creating a single “BRICS currency” overnight.
Why does the dollar matter so much? Because it’s the world’s primary reserve currency. Most global trade — especially oil — is priced and settled in dollars. Central banks hold dollars as a safety net. This gives America enormous power: it can freeze assets, cut countries off from the SWIFT payment system, and use the dollar as a geopolitical weapon .
Russia felt this firsthand after its 2022 invasion of Ukraine, when roughly $300 billion of its central bank reserves were frozen . That moment convinced many countries that dollar dependence is a risk, not just a convenience.
So Why Is America Angry With India?
Here’s the thing: India is not leading the charge against the dollar. External Affairs Minister S. Jaishankar has said plainly that “replacing the dollar is not India’s policy” . India’s central bank governor has echoed this.
But India is hosting the 2026 BRICS summit in New Delhi. And at that summit, India is pushing something more subtle — and arguably more effective — than a symbolic “BRICS currency.”
India is proposing:
Local currency trade: Instead of converting everything through dollars, countries should trade in their own currencies. If India buys oil from Russia, pay in rupees or roubles. If India trades with China, use rupees and yuan .
Linking digital payment systems: India wants to connect its UPI system with similar fast-payment networks in other BRICS countries. This would make cross-border payments cheaper, faster, and less dependent on dollar-clearing channels .
Central Bank Digital Currency (CBDC) interoperability: The Reserve Bank of India has recommended a formal proposal to link BRICS CBDCs, so payments can move directly between central banks without touching the dollar system .
None of this replaces the dollar. But all of it reduces the number of transactions that flow through American banks — and that’s what Washington doesn’t like.
Trump has threatened 100% tariffs on BRICS countries if they push a currency that challenges the dollar. He’s called the dollar “king” and compared losing its reserve status to “losing a World War” .
Here’s the thing: India is not leading the charge against the dollar. External Affairs Minister S. Jaishankar has said plainly that “replacing the dollar is not India’s policy” . India’s central bank governor has echoed this.
But India is hosting the 2026 BRICS summit in New Delhi. And at that summit, India is pushing something more subtle — and arguably more effective — than a symbolic “BRICS currency.”
India is proposing:
Local currency trade: Instead of converting everything through dollars, countries should trade in their own currencies. If India buys oil from Russia, pay in rupees or roubles. If India trades with China, use rupees and yuan .
Linking digital payment systems: India wants to connect its UPI system with similar fast-payment networks in other BRICS countries. This would make cross-border payments cheaper, faster, and less dependent on dollar-clearing channels .
Central Bank Digital Currency (CBDC) interoperability: The Reserve Bank of India has recommended a formal proposal to link BRICS CBDCs, so payments can move directly between central banks without touching the dollar system .
None of this replaces the dollar. But all of it reduces the number of transactions that flow through American banks — and that’s what Washington doesn’t like.
Trump has threatened 100% tariffs on BRICS countries if they push a currency that challenges the dollar. He’s called the dollar “king” and compared losing its reserve status to “losing a World War” .
Why Is India Walking This Tightrope?
India’s approach is pragmatic, not ideological. Here’s why:
India runs a massive trade deficit with BRICS. In FY26, India’s trade deficit with BRICS nations hit $226 billion . That means India buys far more than it sells to the bloc. If everyone started settling in local currencies, India would be paying out rupees and receiving currencies it might struggle to use. Russia already got stuck with billions in rupee balances it couldn’t spend, forcing both sides to find workarounds .
India doesn’t want to trade dollar dependence for yuan dependence. China runs surpluses with almost every BRICS member. If local currency settlement became the norm, most members would end up holding yuan — and that would just swap one dominant currency for another, this time one controlled by a strategic rival .
India values its US relationship. India’s IT and services exports to America are largely invoiced in dollars. Its defence and technology ties with Washington are deepening. A full-frontal assault on the dollar would force India to pick sides in a way it wants to avoid .
India’s approach is pragmatic, not ideological. Here’s why:
India runs a massive trade deficit with BRICS. In FY26, India’s trade deficit with BRICS nations hit $226 billion . That means India buys far more than it sells to the bloc. If everyone started settling in local currencies, India would be paying out rupees and receiving currencies it might struggle to use. Russia already got stuck with billions in rupee balances it couldn’t spend, forcing both sides to find workarounds .
India doesn’t want to trade dollar dependence for yuan dependence. China runs surpluses with almost every BRICS member. If local currency settlement became the norm, most members would end up holding yuan — and that would just swap one dominant currency for another, this time one controlled by a strategic rival .
India values its US relationship. India’s IT and services exports to America are largely invoiced in dollars. Its defence and technology ties with Washington are deepening. A full-frontal assault on the dollar would force India to pick sides in a way it wants to avoid .
As one former diplomat put it, India sees BRICS as “non-Western, not anti-Western” — a platform for leverage, not a weapon of confrontation .
What’s Actually at Stake for Ordinary People?
In the short term? Almost nothing noticeable. The dollar isn’t going anywhere soon. It dominates foreign exchange markets and global reserves, and there’s no ready alternative that offers the same depth and liquidity.
In the longer term, if India’s “de-risking” strategy works, the benefits are quiet but real:
Cheaper remittances and trade payments: Linking UPI with other systems could cut transaction costs for businesses and families sending money abroad.
Less exposure to sanctions shocks: If a geopolitical crisis cuts off dollar channels, India would have alternative payment rails.
A stronger rupee over time: More international use of the rupee could reduce exchange-rate volatility for Indian businesses.
In the short term? Almost nothing noticeable. The dollar isn’t going anywhere soon. It dominates foreign exchange markets and global reserves, and there’s no ready alternative that offers the same depth and liquidity.
In the longer term, if India’s “de-risking” strategy works, the benefits are quiet but real:
Cheaper remittances and trade payments: Linking UPI with other systems could cut transaction costs for businesses and families sending money abroad.
Less exposure to sanctions shocks: If a geopolitical crisis cuts off dollar channels, India would have alternative payment rails.
A stronger rupee over time: More international use of the rupee could reduce exchange-rate volatility for Indian businesses.
The Bottom Line
America isn’t angry with India because India is threatening the dollar. It’s nervous because India is hosting a summit where the conversation about dollar alternatives is getting louder — and because even modest steps toward payment diversification, multiplied across a bloc representing nearly half the world’s population, could slowly erode the leverage America has enjoyed for decades.
India’s strategy is simple: reduce risk without picking a fight. It wants cheaper payments, fewer sanctions vulnerabilities, and more strategic room to manoeuvre. It doesn’t want to replace the dollar. It just doesn’t want to be trapped by it either.
That’s not a declaration of war. It’s insurance. And America knows the difference — even if the rhetoric suggests otherwise.
America isn’t angry with India because India is threatening the dollar. It’s nervous because India is hosting a summit where the conversation about dollar alternatives is getting louder — and because even modest steps toward payment diversification, multiplied across a bloc representing nearly half the world’s population, could slowly erode the leverage America has enjoyed for decades.
India’s strategy is simple: reduce risk without picking a fight. It wants cheaper payments, fewer sanctions vulnerabilities, and more strategic room to manoeuvre. It doesn’t want to replace the dollar. It just doesn’t want to be trapped by it either.
That’s not a declaration of war. It’s insurance. And America knows the difference — even if the rhetoric suggests otherwise.
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