India Plays Both Sides: Crypto-Friendly US Ties Deepen as BRICS Bloc Falters
New Delhi’s diplomatic tightrope walk just got more interesting—while cozying up to Washington’s crypto-regulatory framework, Modi’s government keeps one foot in the BRICS de-dollarization camp. Smart hedging, or desperate portfolio diversification?
The rupee’s still getting hammered, but at least their geopolitical spread bets are more balanced than your average leverage trader’s altcoin basket.
In Brief
- India shows official support for the US dollar despite geopolitical tensions around dedollarization.
- Foreign Minister S. Jaishankar denies any intent to weaken the American currency.
- A new trade agreement between India and the United States strengthens this posture of economic cooperation.
- Meanwhile, signals suggest India’s discreet support for BRICS monetary initiatives.
The Public Position and Official Discourse : Firm Support for the Dollar
In an official statement, Indian Foreign Minister Subrahmanyam Jaishankar dismissed any intent to participate in dedollarization. He stated :
“We have no interest in weakening the US dollar.”
This statement fits into a dynamic where international monetary tensions make every word heavy with meaning. It takes place in a context where BRICS countries are accused of wanting to reduce their dependency on the American currency.
Alongside this statement, several concrete elements illustrate India’s official commitment to enhanced economic cooperation with the United States :
- Finalization of the terms of reference : India and the United States have concluded an agreement that defines the basis of a future trade treaty ;
- Strengthening of bilateral exchanges : this framework provides for reciprocal negotiations to harmonize trade practices ;
- A clear economic strategy : through this approach, New Delhi sends a clear signal of stability to Western partners while consolidating its image as a reliable partner in the global economy.
This public stance, combined with the announcement of a new trade agenda with Washington, projects the image of an India determined not to challenge the current economic order. Yet, this official line contrasts with other more ambiguous signals.
A Dual Strategy Behind the Scenes : Signs of Double Playing?
While the official rhetoric reassures the markets, information points to a more nuanced reality. Economist Thiago Bessimo claims that “India is playing a double game.” He suggests the country discreetly supports alternative settlement mechanisms, notably based on local currencies or on a still hypothetical BRICS currency.
These initiatives, although little publicized, would testify to India’s desire to explore bypass routes to the dollar, in line with the strategic ambitions of certain group members.
This hybrid positioning responds to a logic of economic and geopolitical diversification. By maintaining ties with the United States while testing alternative solutions, India seeks to secure its interests in the face of a global monetary system perceived as unstable.
The public caution could also be explained by the threat raised by Donald Trump, who mentioned 100 % tariffs against countries promoting dedollarization. In this climate, any statement against the dollar could result in immediate and costly sanctions.
India’s ambivalent strategy raises questions about the unity within the BRICS and the real capacity of the alliance to establish a viable monetary alternative to the dollar. It also highlights a broader issue: the role that emerging powers want to play in redefining global economic balances. If New Delhi manages to maintain this delicate balance without provoking major diplomatic tensions, it could well become a central player in the emergence of a new multipolar monetary order, better adapted to current geopolitical realities.
Maximize your Cointribune experience with our "Read to Earn" program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
