As India prepares to assume the BRICS presidency on January 1, 2026, a new era of enhanced global influence for the bloc is dawning. Recent US policies, including threats of steep tariffs on BRICS nations, have inadvertently strengthened the ties between India, Russia, and China, transforming BRICS into a more formidable international platform. This strategic alignment is particularly evident in areas like agriculture, where BRICS countries are prioritizing food security for the Global South through collaborative efforts in trade, technology, and climate-resilient farming.
The economic and resource might of the 11-member BRICS bloc is substantial. Collectively, BRICS nations produced approximately 42% of the world’s oil in 2024, showcasing their significant leverage in global energy markets. Furthermore, the bloc holds around 20% of global gold reserves, with China and Russia alone accounting for over 14% of central bank holdings. Including domestic reserves, India’s gold holdings are also considerable. Economically, BRICS contributes about 29% to the global GDP, with key members like China, India, Brazil, and Russia ranking among the world’s largest economies. The rapid growth and expansion of the bloc signal a growing challenge to established global economic powers.
In a groundbreaking development, India has opened its doors to rupee-denominated trade among BRICS nations, permitting 100% of transactions to be settled in Indian rupees. This move, formalized by an official circular in August, directly challenges the long-standing dominance of the US dollar in international trade. The Reserve Bank of India’s directive to banks to establish dedicated vostro accounts without prior approval facilitates direct rupee trading for exporters and importers, potentially accelerating the de-dollarization trend.
BRICS countries are actively pursuing an independent payment system, aiming to operate outside the US dollar’s sphere of influence. This initiative is a top strategic priority for the bloc, with discussions progressing under Brazil’s current presidency, building on foundations laid during Russia’s 2024 presidency. This pursuit of financial autonomy raises significant concerns in Washington regarding the future of American financial leverage. Meanwhile, India continues to secure stable oil imports from Russia, even amidst Western sanctions, with refiners purchasing discounted crude from non-sanctioned Russian suppliers. Projections indicate India’s Russian oil imports could reach a million barrels daily, demonstrating the resilience of bilateral energy ties.
