A historic economic realignment is underway as India, China, and Russia form a $54 trillion alliance in purchasing power parity terms, representing nearly a third of the global GDP and reshaping the geopolitical and trade landscape.

This bloc leverages China's manufacturing strength, Russia's energy dominance, and India's leadership in digital services to create a multipolar trade system that reduces reliance on the US dollar. US tariffs, especially on Indian exports and Russian energy, intended to isolate and weaken them, have instead galvanised deeper cooperation between these three nations.

Together, they have bypassed Western banking systems by transacting in their own national currencies—rupees, yuan, and roubles—bolstering regional connectivity routes like the International North-South Transport Corridor and the new Chennai-Vladivostok maritime link.

India-Russia trade has surged, with discounted Russian oil supplying over a third of India’s crude imports and burgeoning exports to Russia while they explore free trade deals with the Eurasian Economic Union.

This trilateral cooperation extends beyond trade to industrial modernisation in aerospace, advanced materials, and mining technology, emphasising self-reliance and diminished dependence on Western technologies.

Defence cooperation, highlighted by India's push for indigenous weapon manufacturing, further fuels economic growth and technology sharing, supported by regular dialogues and joint exercises with Russia.

The 2025 SCO and BRICS summits have highlighted this evolving partnership, as India and China cautiously thaw relations post-2020 stand-off with resumed dialogues, border trade ties, and discussions to ease travel restrictions.

Combined Power of India, Russia And China

IndicatorIndia-China & RussiaShare of Global Total
GDP (PPP)$53.9 trillion~1/3rd of the global economic output
Exports$5.09 trillion~20% of global exports
Foreign Reserves$4.7 trillion38% of global reserves
Population3.1 billion37.8% of the world population
Military Spending$549 billion20.2% of the global defence budget
Energy Consumption35%35% of the global total

Bypassing The US Dollar

India, China, and Russia are employing several key mechanisms to bypass the US dollar in trade settlements and reduce reliance on traditional Western financial systems:

Bilateral Currency Swap Agreements: India, China, and Russia have established currency swap arrangements to settle trade in their own national currencies—rupees, yuan, and roubles—allowing them to bypass the dollar and avoid sanctions. This enables direct conversion and payment without using the dollar as an intermediary currency.

Use of National Currencies For Trade: They are conducting a majority of their bilateral trade transactions in their domestic currencies rather than the US dollar. For example, China and Russia do nearly 95% of their trade settlements in yuan and roubles. India and Russia actively use rupees and roubles in growing trade volumes, including energy imports to India.

Alternative Payment Systems To SWIFT: To avoid the US-dominated SWIFT financial messaging system, Russia developed its own system called SPFS, and China operates the Cross-Border Interbank Payment System (CIPS). Efforts are underway to integrate these systems, allowing secure transactions outside SWIFT’s reach and shielding against US sanctions.

Rupee-VOSTRO Accounts And RBI Mechanisms: India’s Reserve Bank of India (RBI) has set up mechanisms allowing Indian and partner country banks to open Rupee-VOSTRO accounts—special accounts to hold rupees paid by importers/exporters for settlement. This structure facilitates trade settlements purely in Indian rupees without converting to the dollar.

Promoting Regional Currency Use And Financial Infrastructure: These nations are encouraging use of regional currencies for bonds, investment, and trade settlements, along with initiatives to develop independent payment infrastructure potentially including a common BRICS payment system or currency, although India currently prefers trade in existing national currencies.

Together, these mechanisms provide a survival strategy under US sanctions and trade restrictions, reducing transaction costs and financial vulnerabilities by creating a multipolar trade settlement environment outside the dollar sphere.

These developments signal a robust and growing alliance designed to challenge the current global economic order, create new supply chains, and foster a global system prioritising independence, resilience, and regional currency use, marking a shift from unipolar Western dominance to a more diversified multipolar world order.

IDN (With Agency Inputs)