De-Dollarisation: A Pragmatic Shift
One of the most talked-about topics is 'de-dollarisation'. This isn't about replacing the US dollar overnight, which still dominates global trade and reserves. Instead, BRICS nations are focused on a gradual, practical shift. The goal is to increase the use of local
currencies for trade between member countries, reducing their vulnerability to the dollar's fluctuations and US monetary policy. This involves creating financial 'hedges' on a large scale. India, for example, has already started paying for some oil imports in rupees. The broader strategy is to build a more resilient financial system that is less dependent on a single currency, thereby promoting greater economic sovereignty among members.
Building a New Financial Infrastructure
To make de-dollarisation a reality, new infrastructure is essential. A key proposal, pushed by India during its 2026 chairmanship, is to link the fast payment systems of member countries, such as India's UPI, China's CIPS, and Brazil's Pix. The idea is to create a digital bridge that allows for near-instant, low-cost cross-border payments directly between national currencies, bypassing the traditional US-centric correspondent banking system. This is being explored alongside connecting Central Bank Digital Currencies (CBDCs). The Reserve Bank of India has recommended this be a major agenda item for the summit. These initiatives are seen as more practical and immediately achievable than creating a single common BRICS currency, a proposal which India has firmly opposed.
The Role of the New Development Bank
The New Development Bank (NDB), often called the BRICS Bank, is the central institution driving this financial reform agenda. Its General Strategy for 2022-2026 explicitly prioritises scaling up development finance and providing solutions for sustainable infrastructure projects in member countries. A core part of this strategy is to increase lending in local currencies. The NDB aims to have 30% of its financing denominated in the national currencies of its members by 2026. This insulates borrowing countries from exchange-rate risk and the effects of US interest rate cycles, making development financing more stable and predictable. The bank is also focused on funding innovation, digital infrastructure, and clean energy projects.
Market Diversification and India's Stake
Beyond currency, the summit will address market diversification. This means creating stronger trade and investment links within the BRICS bloc to reduce over-reliance on traditional Western markets. For India, which holds the BRICS chair in 2026, this is about striking a strategic balance. New Delhi is championing initiatives that strengthen multilateral trading systems with the World Trade Organization at its core, while also building new avenues for cooperation. Under its presidency theme of “Resilience, Innovation, Cooperation, and Sustainability,” India is pushing for practical collaboration on digital public infrastructure, supply chain resilience, and greater access for small and medium-sized enterprises (SMEs) to international markets. The goal is to leverage the expanded BRICS grouping, which now represents a significant portion of the world's population and GDP, to create new opportunities for Indian businesses.
