India has officially responded to recent comments made by U.S. President-elect Donald Trump, who threatened to impose 100% tariffs on BRICS countries if they move forward with plans to create a new currency to challenge the U.S. dollar in global trade. On Friday November 6, the Governor of the Reserve Bank of India (RBI), Shaktikanta Das, clarified that India is not pursuing a policy of de-dollarization and emphasized that no decisions have been made regarding a potential BRICS currency.

In a press briefing, Das responded to Trump’s threats by stating, “There is no step which we have taken that specifically wants to de-dollarize.” He further explained that India has entered into local currency-denominated trade agreements with certain nations to mitigate risks associated with currency fluctuations. “Dependence on one currency can be problematic at times because of appreciation or depreciation,” he added, but reiterated that de-dollarization is certainly not India’s objective.

Das also clarified that the idea of a BRICS currency had been raised by one of the member countries, but no formal decisions have been taken yet. “The geographical spread of the countries has also to be kept in mind, unlike the euro zone which has geographical contiguity,” he noted, suggesting that the logistics and practicalities of creating a unified currency for BRICS countries may be more complicated than some anticipate.

External Affairs Minister S. Jaishankar, in comments made during his visit to Qatar for the Doha Forum, also echoed Das's stance, affirming that there are no plans for a BRICS currency. “India has never been for de-dollarization, right now there is no proposal to have a BRICS currency,” Jaishankar said. He further underscored that the U.S. is India's largest trading partner, and the country has no interest in weakening the dollar.

India exports a variety of goods to the US. In 2022, India exported $7.54 billion worth of packaged medicaments, $4.87 billion worth of refined petroleum. It also exports textiles, apparel, agricultural products, and automotive components to the United States.

The BRICS group, consisting of Brazil, Russia, India, China, and South Africa, has increasingly discussed the possibility of reducing reliance on the U.S. dollar for international trade. At the most recent BRICS summit in October 2024, Brazil's President Luiz Inácio Lula da Silva called for the creation of a common currency to counter the dollar’s dominance. The group has also endorsed using local currencies for bilateral trade among member nations and unveiled a symbolic BRICS banknote during the summit. However, no concrete proposals have been made to establish a new currency at this stage.

Trump's remarks came after a week of heightened discussions surrounding BRICS' potential move away from the U.S. dollar. The President-elect, speaking on his Truth Social platform, warned BRICS nations that “if they try to replace the mighty U.S. dollar” with another currency, they would face severe economic consequences. “We require a commitment from these countries that they will neither create a new BRICS currency, nor back any other currency to replace the mighty US Dollar or, they will face 100% tariffs,” Trump wrote. He further added, “They can go find another 'sucker.”