India Begins to Study BRICS Currency: A Deep Dive

India has ordered a cluster of finance analysts and think tanks to study the prospects of a new BRICS currency, signaling a significant step in evaluating the feasibility and implications of this ambitious proposal. The central government has decided to ask a cluster of think tanks to study the proposal for a Brics (founding five: Brazil, Russia, India, China, and South Africa) currency. This move comes as most BRICS countries strongly push for use of national currencies for trade and financial transactions within the bloc in an attempt to ‘de-dollarise’ their economies.

India's Approach to the BRICS Currency Proposal

The proposal orders finance intellectuals to debate if India should participate in the initiative. Indian officials are yet to begin studying the prospects of a new BRICS currency this year, but this latest directive marks a shift towards serious consideration. The officials might take six months or more to fully understand the concept, ensuring a thorough and well-informed assessment. India directs finance analysts and think tanks to assess prospects for a new BRICS currency ahead of the October summit in Russia, highlighting the urgency and importance India places on this subject.

Key Considerations for India

BRICS countries consider using national currencies for trade, and India may agree if the decision is non-binding and flexible. This cautious approach reflects India’s commitment to maintaining its economic stability and ensuring any decision aligns with its national interests. The BRICS summit in Kazan is set to take up proposals on the currency, and India’s assessment will play a crucial role in shaping the bloc's future direction. The study will likely encompass a comprehensive analysis of the potential benefits and risks associated with a BRICS currency, including its impact on trade, investment, and the Indian Rupee.