India has contributed $2 billion to BRICS Bank: Finance Ministry

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Last Updated04/12/2024

India has contributed nearly $2 billion to the BRICS New Development Bank (NDB), and 20 externally aided projects, with loans amounting to $4,867 million in areas such as transportation.

Union Minister of State for Finance, Pankaj Chaudhary, highlighted India’s significant contribution to the BRICS New Development Bank (NDB), which amounts to nearly $2 billion. This contribution was made in seven installments from fiscal year 2015-16 to 2021-22.
Chaudhary also mentioned that 20 externally aided projects are currently underway in India, totaling loans of $4.867 billion. These projects cover key sectors such as transportation, water conservation, food management, and rural connectivity.

In response to concerns regarding a joint BRICS currency, Chaudhary referred to a report prepared by Russia during its BRICS chairmanship in 2024. The report discusses the international monetary and financial system, acknowledging that while BRICS nations understand the natural constraints of a joint currency.
They do not seek to replace the US dollar as the primary medium of exchange. Instead, BRICS aims to provide a viable alternative that enhances market efficiency and promotes inclusive economic globalization.

The report also emphasized the shortcomings of the current cross-border payment infrastructure, which relies heavily on centralized settlement mechanisms and reserve currencies. This system is seen as outdated and not suited for modern economic demands.
The US dollar still dominates global trade, making up over 90% of transactions, but there is growing momentum to reduce reliance on it. This shift gained traction after the US excluded countries like Iran and Russia from the SWIFT system, prompting nations to explore alternatives to the US-led financial infrastructure.

While BRICS does not aim to replace the US dollar, it recognizes the need for a more efficient and competitive cross-border payment system. The growing demand for alternatives to the dollar reflects the changing dynamics in global trade and finance, as nations seek to ensure greater economic autonomy and resilience.