<p>Iran war will be among a host of geopolitical issues to be discussed at Wion World Pulse, the Leaders' Confluence taking place on Wednesday (Mar 18) in the Indian capital New Delhi. An interesting aspect of this is how the BRICS grouping navigates the complexities unleashed on their economies by the war, which began with joint Israel-US strikes on Iran from February 28. BRICS is yet to issue a joint statement on the war, a complication partly arising from the fact that Iran is a full member of BRICS. Each individual member is affected by the war and the subsequent disruption of maritime trade amid Iranian threats to partially close the chokepoint &nbsp;of Srtait of Hormuz. How are India and other BRICS nations dealing with the crisis? Ahead of WION World Pulse event, here is an analysis.</p><p>&nbsp;</p><h2>Iran war complicates India's chairmanship of BRICS</h2><p>India currently chairs BRICS and will host the annual summit around August or September. Along with protecting its own interests, India is responsible for coordinating positions on major issues affecting the group, with the Iran war emerging as a key challenge. This year’s BRICS theme is “Building for Resilience, Innovation, Cooperation and Sustainability.” Its four pillars include supply chain resilience, innovation in digital public infrastructure and AI, cooperation through reformed multilateralism and Global South representation, and sustainability through green finance and energy transition. The agenda prioritises economic and developmental cooperation rather than geopolitical disputes, aligning with India’s approach of multi-alignment and consensus-building.</p><p>However, the Iran war has brought India’s chairmanship under sharp relief. BRICS has not issued a joint statement even as Iran directly urged India to “activate BRICS.” President Masoud Pezeshkian spoke with Prime Minister Narendra Modi, while Foreign Minister Abbas Araghchi contacted External Affairs Minister S Jaishankar, asking the bloc to condemn US-Israeli strikes and the killing of Supreme Leader Ali Khamenei. No such statement was issued.</p><p>India’s Ministry of External Affairs said “some members of the BRICS are directly involved in the current situation in the West Asia region, which has impacted forging a consensus on a common BRICS position.” India has instead called for “dialogue and diplomacy,” expressed concern over escalation and civilian losses, and largely maintained neutrality. Under Brazil’s chairmanship in 2025, BRICS had issued two statements condemning Israeli strikes on Iran during the 12-day war, highlighting how the chair’s national interests shape the bloc’s response.</p><h2>India maintains close relations with multiple sides in the conflict</h2><p>&nbsp;India has defence and technology ties with Israel, strong energy and diaspora interests in the UAE and Saudi Arabia, and expanding relations with the United States. At the same time, it retains longstanding ties with Iran, including the Chabahar port project that provides it access to Central Asia.</p><p>BRICS expansion has also complicated the consensus. The grouping has grown from five to 11 members, including countries with competing interests. Iran now faces tensions with fellow members UAE and Saudi Arabia. As chair, India cannot manufacture unity; it can only amplify consensus when interests align or manage divisions quietly.</p><h2>War is testing the economic pillar of BRICS cooperation</h2><p>Iran has effectively restricted the Strait of Hormuz since early March through attacks on shipping, delaying or rerouting more than 1,000 vessels. The strait normally carries about 20 per cent of global seaborne oil, LNG, fertilisers, grains and other commodities. Oil and gas prices surged, tanker rates rose sharply, and shipping lines rerouted vessels around the Cape of Good Hope, adding 10–14 days to transit and raising costs for BRICS economies, including India.</p><p>Also read: <a href="https://www.wionews.com/world/wion-power-pulse-top-envoys-from-italy-germany-singapore-and-sri-lanka-to-discuss-trust-in-era-of-disruptive-diplomacy-1773197728582">Power Pulse: Top envoys from Italy, Germany, Singapore and Sri Lanka to discuss trust in era of disruptive diplomacy</a></p><h2>Food and fertiliser supplies for India and other BRICS nations hit by war</h2><p>Fertiliser markets have been particularly sensitive to the disruption. Gas price spikes and shipping delays pushed global fertiliser costs up by roughly 20–30 per cent. However, India has moved to cushion domestic impact. The government says fertiliser stocks remain comfortable ahead of the Kharif 2026 season, with urea inventories higher than last year</p><p>Domestic urea production is expected to exceed consumption as the Rabi season ends. Authorities advanced annual maintenance schedules at fertiliser plants to maximise output with available gas. The Department of Fertilisers also issued global tenders in advance and is procuring spot gas competitively to sustain production. Officials say supply partners have assured uninterrupted deliveries and that stocks should remain adequate when Kharif demand peaks around mid-May.</p><p>Food supply chains are also affected by the maritime disruptions. Gulf countries like Saudi Arabia and the UAE import nearly 70 per cent of their food through these routes, while major importers such as India and China face rising freight costs for grains, sugar and vegetable oils. Even short disruptions to the Strait of Hormuz can trigger global food-price inflation and supply chain instability for import-dependent BRICS economies.</p><p>If the war extends beyond several weeks, countries may need emergency steps such as releasing stockpiles, sourcing supplies from alternative partners like Russia or Brazil, or offering subsidies to support businesses facing rising input costs.</p><p><a href="https://www.wionews.com/videos/wion-world-pulse-global-leaders-strategy-conversations-in-new-delhi-1773582256775/embed">https://www.wionews.com/videos/wion-world-pulse-global-leaders-strategy-conversations-in-new-delhi-1773582256775/embed</a></p><h2>India’s approach: A pragmatic strategy amid testing times</h2><p>India's stance is focused on economic stability and de-escalation. It continues consultations through BRICS Sherpa channels and diplomatic engagement with member states. The crisis highlights both India’s balancing act and the structural limits of BRICS consensus during geopolitical conflicts.</p><p>These geopolitical and economic pressures on BRICS will be among issues to be discussed in detail at WION World Pulse, starting at 10 am at ITC Maurya, New Delhi.&nbsp;</p><p>Stay tuned.</p>

WION World Pulse: Among the issues to be discussed at the event would be the Iran war, wherein India’s BRICS chairmanship faces pressure over a joint stance. Trade disruptions raise energy and fertiliser costs. India is taking a pragmatic approach.



Iran war will be among a host of geopolitical issues to be discussed at Wion World Pulse, the Leaders' Confluence taking place on Wednesday (Mar 18) in the Indian capital New Delhi. An interesting aspect of this is how the BRICS grouping navigates the complexities unleashed on their economies by the war, which began with joint Israel-US strikes on Iran from February 28. BRICS is yet to issue a joint statement on the war, a complication partly arising from the fact that Iran is a full member of BRICS. Each individual member is affected by the war and the subsequent disruption of maritime trade amid Iranian threats to partially close the chokepoint of Srtait of Hormuz. How are India and other BRICS nations dealing with the crisis? Ahead of WION World Pulse event, here is an analysis. Iran war complicates India's chairmanship of BRICS India currently chairs BRICS and will host the annual summit around August or September. Along with protecting its own interests, India is responsible for coordinating positions on major issues affecting the group, with the Iran war emerging as a key challenge. This year’s BRICS theme is “Building for Resilience, Innovation, Cooperation and Sustainability.” Its four pillars include supply chain resilience, innovation in digital public infrastructure and AI, cooperation through reformed multilateralism and Global South representation, and sustainability through green finance and energy transition. The agenda prioritises economic and developmental cooperation rather than geopolitical disputes, aligning with India’s approach of multi-alignment and consensus-building. However, the Iran war has brought India’s chairmanship under sharp relief. BRICS has not issued a joint statement even as Iran directly urged India to “activate BRICS.” President Masoud Pezeshkian spoke with Prime Minister Narendra Modi, while Foreign Minister Abbas Araghchi contacted External Affairs Minister S Jaishankar, asking the bloc to condemn US-Israeli strikes and the killing of Supreme Leader Ali Khamenei. No such statement was issued. India’s Ministry of External Affairs said “some members of the BRICS are directly involved in the current situation in the West Asia region, which has impacted forging a consensus on a common BRICS position.” India has instead called for “dialogue and diplomacy,” expressed concern over escalation and civilian losses, and largely maintained neutrality. Under Brazil’s chairmanship in 2025, BRICS had issued two statements condemning Israeli strikes on Iran during the 12-day war, highlighting how the chair’s national interests shape the bloc’s response. India maintains close relations with multiple sides in the conflict India has defence and technology ties with Israel, strong energy and diaspora interests in the UAE and Saudi Arabia, and expanding relations with the United States. At the same time, it retains longstanding ties with Iran, including the Chabahar port project that provides it access to Central Asia. BRICS expansion has also complicated the consensus. The grouping has grown from five to 11 members, including countries with competing interests. Iran now faces tensions with fellow members UAE and Saudi Arabia. As chair, India cannot manufacture unity; it can only amplify consensus when interests align or manage divisions quietly. War is testing the economic pillar of BRICS cooperation Iran has effectively restricted the Strait of Hormuz since early March through attacks on shipping, delaying or rerouting more than 1,000 vessels. The strait normally carries about 20 per cent of global seaborne oil, LNG, fertilisers, grains and other commodities. Oil and gas prices surged, tanker rates rose sharply, and shipping lines rerouted vessels around the Cape of Good Hope, adding 10–14 days to transit and raising costs for BRICS economies, including India. Also read: Power Pulse: Top envoys from Italy, Germany, Singapore and Sri Lanka to discuss trust in era of disruptive diplomacy Food and fertiliser supplies for India and other BRICS nations hit by war Fertiliser markets have been particularly sensitive to the disruption. Gas price spikes and shipping delays pushed global fertiliser costs up by roughly 20–30 per cent. However, India has moved to cushion domestic impact. The government says fertiliser stocks remain comfortable ahead of the Kharif 2026 season, with urea inventories higher than last year Domestic urea production is expected to exceed consumption as the Rabi season ends. Authorities advanced annual maintenance schedules at fertiliser plants to maximise output with available gas. The Department of Fertilisers also issued global tenders in advance and is procuring spot gas competitively to sustain production. Officials say supply partners have assured uninterrupted deliveries and that stocks should remain adequate when Kharif demand peaks around mid-May. Food supply chains are also affected by the maritime disruptions. Gulf countries like Saudi Arabia and the UAE import nearly 70 per cent of their food through these routes, while major importers such as India and China face rising freight costs for grains, sugar and vegetable oils. Even short disruptions to the Strait of Hormuz can trigger global food-price inflation and supply chain instability for import-dependent BRICS economies. If the war extends beyond several weeks, countries may need emergency steps such as releasing stockpiles, sourcing supplies from alternative partners like Russia or Brazil, or offering subsidies to support businesses facing rising input costs. https://www.wionews.com/videos/wion-world-pulse-global-leaders-strategy-conversations-in-new-delhi-1773582256775/embed India’s approach: A pragmatic strategy amid testing times India's stance is focused on economic stability and de-escalation. It continues consultations through BRICS Sherpa channels and diplomatic engagement with member states. The crisis highlights both India’s balancing act and the structural limits of BRICS consensus during geopolitical conflicts. These geopolitical and economic pressures on BRICS will be among issues to be discussed in detail at WION World Pulse, starting at 10 am at ITC Maurya, New Delhi. Stay tuned.

<p><strong>WION World Pulse: </strong>Among the issues to be discussed at the event would be the Iran war, wherein India’s BRICS chairmanship faces pressure over a joint stance. Trade disruptions raise energy and fertiliser costs. India is taking a pragmatic approach.</p><p>&nbsp;</p>

WION World Pulse: Iran war response of BRICS, with India as chair, under focus

<p>As India prepares to host the BRICS summit later this year, amid rumours of a “BRICS currency” to replace the US dollar, the focus is expected to be on a shared payment system that links national digital currencies. Here's all you need to know about a BRICS payment system.</p><h2><strong>Not a currency, but a system</strong></h2><p>Previously, reports suggested the possible launch of a single BRICS currency that could potentially replace the US dollar. However, the proposals for a common currency ran into obvious problems: different inflation regimes, capital controls, and fears that China’s yuan would dominate any shared system. However, this new approach, a BRICS payment system built on interoperable central bank digital currencies (CBDCs), could avoid all of that.</p><p><strong>Also read | </strong><a href="https://www.wionews.com/india-news/how-safe-is-the-rupee-from-trump-s-tantrums-economic-survey-2025-26-reveals-risks-1769676289934"><strong>How safe is the rupee from Trump's tantrums? Economic Survey 2026 reveals risks</strong></a></p><h2><strong>BRICS digital currency platform</strong></h2><p>According to Asia Times, the idea is to connect existing central bank digital currencies, such as India’s digital rupee, China’s digital yuan and Russia’s digital ruble, through a common payment infrastructure. Each country keeps full control over its own currency. What changes is how these currencies interact.</p><p>In simple terms, it would allow countries to settle trade directly in their own digital currencies, without routing payments through correspondent banks or the dollar-based SWIFT network.</p><h2><strong>Why India matters</strong></h2><p>India is playing a central role in shaping this direction. Summit host New Delhi has consistently pushed for interoperability rather than monetary integration, a philosophy shaped by its own digital payments success at home through Unified Payments Interface (UPI). The emphasis is on building systems that talk to each other while preserving sovereignty.</p><p>The Reserve Bank of India has been clear that the digital rupee is not a crypto asset and not a step toward a currency union. It is simply a digital version of sovereign money.</p><p>There is also a practical lesson behind this stance. Earlier trade settlements with Russia left Moscow holding large amounts of rupees it could not easily spend, the so-called “rupee trap”. A multilateral system, rather than bilateral deals, helps prevent currencies from piling up uselessly.</p><p><strong>Also read | </strong><a href="https://www.wionews.com/india-news/economic-survey-2025-26-tabled-in-lok-sabha-india-needs-8-growth-to-achieve-viksit-bharat-dream-by-2047-what-it-says-about-india-s-growth-outlook-1769670492894"><strong>Economic Survey 2025–26: India needs 8% growth to become ‘Viksit Bharat’ by 2047</strong></a></p><h2><strong>How the system would actually work</strong></h2><p>The proposed BRICS payment system rests on two technical ideas: settlement cycles and forex swap lines. Settlement cycles mean countries do not settle every transaction instantly. Instead, trade flows are netted out over a period. Only the final difference is transferred.</p><p>For example, if China imports 500 billion rupees worth of goods from India in a month and exports 450 billion, only the net 50 billion needs to be settled. That massively reduces liquidity needs and transaction costs.</p><p>Forex swap lines, meanwhile, act as a safety valve. If one country suddenly needs more of another’s currency to settle its balance, central banks can temporarily swap currencies to smooth things over.</p><p>This is not about killing the dollar</p><p>None of this replaces the dollar. The dollar still dominates global finance, making up around 59 per cent of global reserves and about 58 per cent of international payments. But there is growing anxiety about how fragile that system has become.</p><p>US national debt is nearing 39 trillion dollars. Global debt stands at around $315 trillion, 64 per cent of which is denominated in dollars. That means the entire world is exposed to US monetary policy and US political stability.</p><p>The risk is circular. If global demand for dollar assets weakens, US borrowing costs rise. That tightens financial conditions everywhere and can trigger cascading crises.</p><h2><strong>Why do countries want a backup</strong></h2><p>This is where geopolitics enters. The concerns about the dollar partly stem from Russia’s exclusion from SWIFT and the freezing of 300 billion dollars. While Iran, North Korea and Cuba have also faced similar measures before, Russia proved that even major economies are not immune.</p><p>With financial infrastructure emerging as a strategic weapon, the BRICS digital payment system could act as a shock absorber. A parallel system that keeps trade functioning if the main one breaks down.</p><h2><strong>When will the BRICS payment system be launched?</strong></h2><p>The BRICS payment system will take some time to come into practice as most CBDCs are still in pilot stages. Legal frameworks and technical standards also vary wildly among the BRICS countries.</p><p>The likely path is gradual - starting with bilateral links, then stitching them into a network. India, meanwhile, already offers a model. Its UPI is already interoperable with the UAE’s payment system, enabling fast cross-border transfers. Brazil’s PIX and China’s digital infrastructure could follow. Over time, this could evolve into a shared BRICS payment layer.<br>&nbsp;</p>

As talk of a “BRICS currency” grows, the bloc actually seems to be moving in a very different direction. Instead of one shared currency, BRICS is working on a digital payment system that links national digital currencies like India’s e-rupee, China’s e-yuan and Russia’s e-ruble. WION Explains

As India prepares to host the BRICS summit later this year, amid rumours of a “BRICS currency” to replace the US dollar, the focus is expected to be on a shared payment system that links national digital currencies. Here's all you need to know about a BRICS payment system. Not a currency, but a system Previously, reports suggested the possible launch of a single BRICS currency that could potentially replace the US dollar. However, the proposals for a common currency ran into obvious problems: different inflation regimes, capital controls, and fears that China’s yuan would dominate any shared system. However, this new approach, a BRICS payment system built on interoperable central bank digital currencies (CBDCs), could avoid all of that. Also read | How safe is the rupee from Trump's tantrums? Economic Survey 2026 reveals risks BRICS digital currency platform According to Asia Times, the idea is to connect existing central bank digital currencies, such as India’s digital rupee, China’s digital yuan and Russia’s digital ruble, through a common payment infrastructure. Each country keeps full control over its own currency. What changes is how these currencies interact. In simple terms, it would allow countries to settle trade directly in their own digital currencies, without routing payments through correspondent banks or the dollar-based SWIFT network. Why India matters India is playing a central role in shaping this direction. Summit host New Delhi has consistently pushed for interoperability rather than monetary integration, a philosophy shaped by its own digital payments success at home through Unified Payments Interface (UPI). The emphasis is on building systems that talk to each other while preserving sovereignty. The Reserve Bank of India has been clear that the digital rupee is not a crypto asset and not a step toward a currency union. It is simply a digital version of sovereign money. There is also a practical lesson behind this stance. Earlier trade settlements with Russia left Moscow holding large amounts of rupees it could not easily spend, the so-called “rupee trap”. A multilateral system, rather than bilateral deals, helps prevent currencies from piling up uselessly. Also read | Economic Survey 2025–26: India needs 8% growth to become ‘Viksit Bharat’ by 2047 How the system would actually work The proposed BRICS payment system rests on two technical ideas: settlement cycles and forex swap lines. Settlement cycles mean countries do not settle every transaction instantly. Instead, trade flows are netted out over a period. Only the final difference is transferred. For example, if China imports 500 billion rupees worth of goods from India in a month and exports 450 billion, only the net 50 billion needs to be settled. That massively reduces liquidity needs and transaction costs. Forex swap lines, meanwhile, act as a safety valve. If one country suddenly needs more of another’s currency to settle its balance, central banks can temporarily swap currencies to smooth things over. This is not about killing the dollar None of this replaces the dollar. The dollar still dominates global finance, making up around 59 per cent of global reserves and about 58 per cent of international payments. But there is growing anxiety about how fragile that system has become. US national debt is nearing 39 trillion dollars. Global debt stands at around $315 trillion, 64 per cent of which is denominated in dollars. That means the entire world is exposed to US monetary policy and US political stability. The risk is circular. If global demand for dollar assets weakens, US borrowing costs rise. That tightens financial conditions everywhere and can trigger cascading crises. Why do countries want a backup This is where geopolitics enters. The concerns about the dollar partly stem from Russia’s exclusion from SWIFT and the freezing of 300 billion dollars. While Iran, North Korea and Cuba have also faced similar measures before, Russia proved that even major economies are not immune. With financial infrastructure emerging as a strategic weapon, the BRICS digital payment system could act as a shock absorber. A parallel system that keeps trade functioning if the main one breaks down. When will the BRICS payment system be launched? The BRICS payment system will take some time to come into practice as most CBDCs are still in pilot stages. Legal frameworks and technical standards also vary wildly among the BRICS countries. The likely path is gradual - starting with bilateral links, then stitching them into a network. India, meanwhile, already offers a model. Its UPI is already interoperable with the UAE’s payment system, enabling fast cross-border transfers. Brazil’s PIX and China’s digital infrastructure could follow. Over time, this could evolve into a shared BRICS payment layer.

<p>As talk of a “BRICS currency” grows, the bloc actually seems to be moving in a very different direction. Instead of one shared currency, BRICS is working on a digital payment system that links national digital currencies like India’s e-rupee, China’s e-yuan and Russia’s e-ruble. WION Explains</p>

India takes lead as BRICS eyes digital payment system to bypass dollar. All about the BRICS payment system - Explained

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WION World Pulse: Iran war response of BRICS, with India as chair, under focus

India takes lead as BRICS eyes digital payment system to bypass dollar-Explained