“No such move (to replace the U.S. dollar) is under consideration,” Nageswaran said at an industry event in the capital, adding that India remains committed to established global financial norms.
His remarks come against the backdrop of repeated U.S. warnings to BRICS members over de-dollarisation efforts. Treasury Secretary Scott Bessent recently mocked suggestions of the rupee rivaling the dollar, saying it was “not one of his worries.” In late 2024, then President-elect Donald Trump had threatened 100% tariffs on BRICS nations if they sought to launch a joint currency.
Indian officials have consistently distanced themselves from such proposals. External Affairs Minister S. Jaishankar has said India has “no policy to replace the dollar” and described the greenback as a source of global stability. Reserve Bank of India Governor Shaktikanta Das has also clarified that rupee trade settlement mechanisms are designed to de-risk commerce, not to undermine dollar dominance.
Nageswaran used the occasion to highlight India’s economic resilience despite global headwinds. The economy expanded 7.8% in the first quarter of FY26, powered by domestic demand and moderate inflation. While higher U.S. tariffs on Indian exports may shave 0.2–0.3 percentage points off GDP growth, the impact will be partly offset by GST rationalisation and other structural reforms, he said.
By ruling out any push for a rival reserve currency, New Delhi appears keen to reassure Washington while continuing efforts to gradually internationalise the rupee for trade settlements.
