India’s Economic Triumph: Fourth-Largest Economy & BRICS Leadership Position India Strategically

New Delhi: The year 2026 opens on a historic note for India, marking two major economic milestones. India has emerged as the world’s fourth-largest economy, surpassing Japan, and has assumed the BRICS chairmanship from 1 January 2026. With Russia and China as BRICS partners, India is now positioned at the center of a powerful geopolitical and economic bloc, even as last year’s trade tensions with the United States left some questions about Washington-New Delhi relations.

BRICS Chairmanship: India’s New Strategic Role
India’s new leadership role in BRICS comes at a time of increasing global influence. Prime Minister Narendra Modi recently visited countries including Ethiopia, Oman, and Jordan, strengthening regional partnerships and positioning India as a major power in global affairs. According to geopolitical analysts, energy production, gold reserves, economic size, and food self-sufficiency are crucial factors in global negotiation leverage, and BRICS countries play a significant role in these metrics. Collectively, BRICS accounted for nearly 42% of the world’s oil production in 2024, underscoring the bloc’s growing strategic influence.

India Surpasses Japan in GDP Rankings
India now ranks as the fourth-largest economy in the world, behind the United States, China, and Germany, leaving Japan in fifth place. Government economic reports indicate that India is expected to surpass Germany in the coming years and could become the third-largest economy globally, trailing only the U.S. and China.

Gold Reserves and Economic Weight
China and Russia together hold more than 14% of global central bank gold reserves, with BRICS countries collectively controlling around 20% of the world’s gold. Including domestic gold holdings, India’s share is expected to surpass several other nations, reinforcing its economic leverage.

BRICS GDP Accounts for Nearly 29% of Global Economy
According to the World Bank, BRICS countries contributed approximately 29% of global GDP in 2024, with the group’s economic size growing rapidly due to development in member states and the inclusion of new members. India is expected to play a leading role in leveraging this influence in 2026.

Challenging the Dollar: India’s Bold Move
In August 2025, India issued a circular allowing BRICS countries to conduct 100% of their trade in Indian Rupees, challenging the dominance of the U.S. dollar. Analysts believe this step could accelerate the global reduction of dollar dependency. The Reserve Bank of India (RBI) also directed banks to open Vostro accounts without prior approval, enabling international exporters and importers to conduct business directly in Indian Rupees.

Russia-China-India Alternative Payment System
BRICS nations are moving ahead with plans for a dollar-independent payment system, raising strategic concerns in Washington. The foundation for this system was laid during Russia’s 2024 BRICS chairmanship, with ongoing discussions under Brazil’s leadership this year.

Stable Oil Imports from Russia
Despite U.S. sanctions on Russian oil companies like Lukoil and Rosneft, India’s refineries continued importing non-sanctioned crude from Russia without significant disruption. Reports indicate that daily imports from Russia could exceed 1 million barrels, maintaining supply stability despite Western sanctions. India remains the world’s third-largest crude oil importer, importing 1.77 million barrels per day from Russia in November 2025, a 3.4% increase over October.

With these strategic moves in trade, energy, and global alliances, India begins 2026 with strengthened economic clout, global influence, and regional leadership, poised to play a pivotal role on the world stage.