India Calls for Local Currency Trade Among BRICS to Strengthen Economic Resilience

India has called for greater use of local currencies in trade among BRICS countries, saying stronger financial cooperation and improved cross-border payment systems could help member economies build greater resilience against global economic disruptions. Union Commerce and Industry Minister Piyush Goyal made the remarks at the BRICS Business Forum in New Delhi, where he stressed the need for deeper economic integration among member countries. He called for easier market access, reduced trade barriers and stronger links between payment systems to facilitate business transactions.

India's push for local-currency trade comes as global economies face continued uncertainty caused by geopolitical tensions, changing trade policies and disruptions to international supply chains. Allowing businesses to settle more transactions in national currencies could reduce dependence on intermediary currencies and provide companies with additional options for conducting international trade.

The proposal also reflects India's broader efforts to promote digital payment connectivity. New Delhi has highlighted the Unified Payments Interface (UPI) as an example of how digital financial infrastructure can make payments faster and more accessible. India is also supporting discussions on improving interoperability between payment systems and exploring ways to facilitate cross-border transactions using digital currencies.

Creating a common payment framework across BRICS is likely to be a complicated process. Member countries have different currencies, banking regulations, financial systems and economic conditions. Differences in trade balances and currency convertibility could also create challenges for businesses seeking to settle transactions directly in local currencies.

India's proposal does not necessarily mean an immediate attempt to replace the US dollar in international trade. Instead, the focus is on expanding the range of payment and settlement options available to businesses and strengthening financial cooperation among emerging economies. Alongside payment reforms, India is seeking greater BRICS cooperation in areas including pharmaceuticals, agriculture, technology, manufacturing, critical minerals and supply chains. Stronger cooperation in these sectors could help member countries diversify sources of essential goods and reduce exposure to disruptions in global markets.

The discussion comes as BRICS expands its role in the global economy, with the grouping seeking closer cooperation among emerging markets. For India, greater use of local currencies and stronger payment connectivity could support trade while giving Indian businesses more flexibility in international transactions. The issue is expected to remain an important part of discussions among BRICS members as India works to deepen economic and financial cooperation within the grouping.

Disclaimer: This image is taken from Hindustan Times.