New Delhi: As the upcoming BRICS summit prepares to convene in South Africa, a groundbreaking proposal is poised for discussion that could potentially reshape the global financial landscape. The five-member coalition of Brazil, Russia, India, China, and South Africa is set to deliberate the prospect of introducing a unified currency akin to the Euro, with far-reaching implications for international trade dynamics and the prevailing dominance of the dollar and euro.
The BRICS countries have recognised the potential of a shared currency to wield significant influence on global economic affairs. However, India’s stance on this pivotal matter emerges as a key determinant. External Affairs Minister S. Jaishankar spoke about India’s position on the matter several months ago, firmly stating that the nation is not inclined towards embracing a BRICS currency. In his speech, Minister Jaishankar emphasised India’s capacity to navigate financial crises without necessitating the introduction of a new currency. The country’s robust performance in the financial sector and the steady augmentation of the national currency, the rupee, remain the focal points of India’s approach.
Importantly, India’s steadfast GDP growth rate underscores its self-sufficiency, rendering it capable of charting a course independent of the proposed BRICS currency. This independence is further underscored by India’s enduring trade and military alliances with both the United States and Europe. Minister Jaishankar said that the nation’s strategic bonds with these powerful global players are deemed too invaluable to risk through the pursuit of the BRICS currency initiative.
Against this backdrop, the Prime Minister embarked on a significant diplomatic mission, embarking on a four-day visit encompassing South Africa and Greece. His first stop is Johannesburg, South Africa, where the BRICS summit is scheduled to convene from August 22 to 24. Subsequently, special programs, like the ‘BRICS Africa Outreach’ and ‘BRICS Plus Dialogue’, are on the Prime Minister’s agenda post-summit. The prime purpose of the BRICS alliance, to amplify cooperation across various sectors, has borne fruit. Notably, the Prime Minister expressed his intent to address matters of paramount significance to the Global South during the summit proceedings.
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