De-dollarization Trends in International trade: Opportunities and risks for the BRICS Nations with Reference to India

The global economy is witnessing a fragmented shift toward de-dollarization, a strategic effort to reduce reliance on the US dollar in international trade and finance. This trend, led by the BRICS nations, aims to enhance economic sovereignty and mitigate geopolitical risks through increased use of local currencies and the development of alternative financial infrastructure, such as the New Development Bank and potential cross- border payment systems. This paper examines the implications of this shift for India, analyzing the opportunities for the internationalization of the Indian Rupee alongside the significant systemic challenges, including currency volatility, liquidity constraints, and trade imbalances. Utilizing a qualitative documentary research design, the study finds that while de-dollarization presents a path to greater financial independence, it requires careful macroeconomic management and the establishment of robust, harmonized financial frameworks to navigate the complexities of a multipolar monetary order. The research underscores that India’s success in this landscape depends on balancing the transition with long-term economic stability.