India, China, and Russia Forge Strategic Alliance Amid US Tariffs to Reduce Dollar Dependence and Boost Trade

Business News:The recent tariff policies introduced by US President Donald Trump have brought India, China, and Russia together on a strategic platform. These three major economies are now working to reduce their dependence on the US dollar and strengthen mutual trade and investment relations. Experts suggest that this alliance could become a significant global force in the coming years.

High-Level Visits and Strategic Dialogues

According to reports, Russian President Vladimir Putin may visit India by the end of 2025, while Prime Minister Narendra Modi is expected to travel to China soon. These visits are not mere formalities—they are seen as the beginning of a coordinated approach toward trade, technology, energy, and financial cooperation among the three countries.

Economic Strength and Global Influence

Combined, India, China, and Russia have a GDP of approximately $54 trillion (PPP), which accounts for about one-third of the global economy. Together, they are home to around 3.1 billion people, nearly 38% of the world’s population. Their vast domestic markets make them powerful players in international trade and investment negotiations.

Moving Away from Dollar Dependency

After the Russia-Ukraine conflict, the US and Europe imposed strict sanctions on Russia. Despite this, India and China continued purchasing Russian oil in local currencies rather than dollars. This move has allowed them to accumulate more local reserves and reduce their reliance on the dollar. Financial experts note that while the US aims to keep global transactions dollar-centered, India, China, and Russia are exploring alternative financial pathways, potentially reshaping global currency dynamics.

Military and Energy Clout

Beyond trade, these nations also hold significant military and energy power. Their combined defense expenditure is estimated at around $549 billion, while they account for 35% of global energy consumption. The recent US tariffs have highlighted the potential of these countries to challenge American dominance in trade, defense, and energy agreements.

Strategic Opportunities for India

Analysts suggest that this partnership offers India multiple benefits. India can secure cheaper oil from Russia, attract investment from China, and leverage its IT and manpower advantages in global markets. Furthermore, India now has greater negotiating power in projects like China’s Belt and Road Initiative. Experts argue that the global focus may shift from “China+1” to “India+2,” positioning India as a key player in international economic and strategic affairs.

The emerging alliance between India, China, and Russia signals a major shift in global economic and strategic landscapes. By collaborating in trade, finance, defense, and energy, these countries are reducing their dependence on the US while increasing their collective influence. This coordinated approach could redefine global power dynamics in the years ahead.