During the 19th Delhi Dialogues held on November 25, 2024, Dammu Ravi, Secretary (Economic Relations) of India's Ministry of External Affairs, addressed the pressing international challenges facing India amid escalating global tensions. His remarks came shortly after the significant 16th BRICS summit in Kazan, Russia, which underscored the group's growing influence as 34 countries expressed interest in joining [a6ddf508]. The summit highlighted the potential for BRICS to reshape global economic dynamics, particularly in challenging the dominance of the U.S. dollar, although Ravi noted that the effectiveness of this challenge remains limited [a6ddf508].
Ravi pointed out the substantial trade imbalance with China, where India's imports amount to approximately $100 billion compared to exports of only $30 billion, resulting in a $130 billion deficit favoring China [a6ddf508]. This imbalance poses significant risks for India's economic stability, especially as it navigates its foreign relations amidst increasing geopolitical tensions. He emphasized that India has successfully engaged in trade using national currencies with 22 out of the 35 proposed countries, showcasing a shift towards reducing reliance on the dollar in international transactions [a6ddf508].
The discussion also touched on the impact of former U.S. President Donald Trump's tariffs on steel and aluminum, which have had repercussions for India's trade landscape. Ravi highlighted India's ongoing dependence on Russian defense imports, which currently stands at 65%, raising concerns about the sustainability of such reliance in a rapidly changing global environment [a6ddf508].
The BRICS summit, which took place in the context of these economic challenges, saw leaders from member countries, including India, Russia, China, and South Africa, advocating for a multipolar world order. The summit's outcomes reflect a collective desire to address Western dominance and explore alternative economic frameworks [957ba5f4].
As India continues to assert its position within the BRICS coalition, the dialogues emphasized the need for strategic economic policies that can mitigate risks associated with global trade dynamics, particularly in relation to China and the broader geopolitical landscape. The implications of these discussions extend beyond immediate economic concerns, potentially influencing India's long-term foreign policy and its role in shaping a new global economic order [a6ddf508].