Key Points

"We have made our position very clear on this issue earlier as well. De-dollarisation is not part of India's financial agenda," MEA spokesperson Randhir Jaiswal said at the weekly media briefing when asked about Brazilian President Lula's statement that BRICS nations may consider an alternative currency amid tension with the United States over steep tariffs on BRICS nations.

The remarks came in response to Brazilian President Luiz Inacio Lula da Silva's recent comments that BRICS members could "discuss" creating a trade currency among themselves.

Explaining his position, Lula said the idea should be tested, adding, "We can discuss in the BRICS. There is a need to have a trade currency between us and the BRICS. I do not reject it because we must test; if the testing fails, then I would be wrong. But someone has to convince me that I am wrong," Russia Today reported.

The comments follow Lula's confirmation that he will visit India in January with a delegation.

When asked if PM Modi had invited Lula following their recent phone conversation, Jaisawal said, "We had gone to Rio to attend the BRICS summit. We also paid a state visit to Brasilia. And at that time, the Prime Minister, as is normal in bilateral ties, invited President Lula to visit India at an appropriate time."

Lula's remarks on a BRICS trade currency come amid fresh trade frictions involving both India and Brazil with the United States.

Last week, US President Donald Trump, in an executive order, imposed an additional 25 per cent tariff on Indian goods taking total duty to 50 per cent, over New Delhi's continued purchase of Russian crude oil.

Last month, Trump also announced a 50 per cent tariff on imports from Brazil starting August 1, while calling the trial of former Brazilian President Jair Bolsonaro a "witch hunt" that "should not take place."

India, however, has maintained that it will continue engaging with BRICS members on issues of shared interest while safeguarding its economic and strategic priorities.

"India is a member of the BRICS group, and we continue to remain in touch with member countries to discuss issues of shared interest, MEA spokesperson Jaiswal added.

India hasn't taken any steps to actively reduce its reliance on the US dollar in international trade, according to External Affairs Minister S Jaishankar.

Instead, India aims to "derisk" its trade by diversifying its trade partners, exploring alternative payment systems, and reducing reliance on a single currency.

India has signed agreements with countries like Russia, the UAE, and the Maldives to settle trades in local currencies, reducing the need for dollar conversion and exchange rate risks.

India is also opposed to having a common currency with China and other BRICS nations, citing geographical differences and a lack of economic integration.

- ANI