The New Geopolitical Chessboard: Investing in the Xi-Putin-Modi Axis as U.S. Hegemony Wanes

The world is no longer a unipolar system dominated by the U.S. dollar and Western institutions. The Xi-Putin-Modi axis—comprising China, Russia, and India—has emerged as a formidable counterweight, reshaping global trade, finance, and investment flows. With a combined GDP of $53.9 trillion in 2025, this trilateral partnership is challenging the U.S.-led order through initiatives like the BRICS+ framework, the Shanghai Cooperation Organisation (SCO), and localized financial systems [1]. For investors, this realignment demands a strategic rethink: where to allocate capital in a multipolar world?

The RIC Axis: A New Economic Powerhouse

The RIC bloc’s strength lies in its complementary assets. China’s manufacturing prowess, India’s digital infrastructure, and Russia’s energy reserves create a self-sustaining ecosystem. Bilateral trade between China and India alone hit $136.2 billion in 2023, despite a $102 billion trade deficit for India [2]. Meanwhile, India and Russia’s trade surged to $68.7 billion in FY 2024-25, driven by energy imports and strategic partnerships [3]. These figures underscore a critical shift: the RIC axis is not just a geopolitical alliance but a deeply interdependent economic network.

The BRICS+ expansion—adding nations like Indonesia, Iran, and the UAE—has amplified this bloc’s influence. Now representing 40% of global GDP and over half the world’s population, BRICS+ is accelerating de-dollarization through local currency trade and alternative payment systems like the BRICS Bridge [5]. This trend is already evident in China-Brazil yuan-reais settlements and India’s Rupee-Ruble trade mechanisms [5].

U.S. Tariffs and the Rise of Alternative Financial Systems

The U.S. has responded to this challenge with aggressive tariffs, including a 50% levy on Indian exports and threats of 100% duties on BRICS imports [3]. These measures aim to disrupt supply chains and preserve dollar dominance, but they’ve also accelerated the RIC’s pivot to self-reliance. India’s “Make in India” agenda, for instance, is now prioritizing domestic manufacturing to offset U.S. trade penalties [1]. Similarly, Chinese investments are shifting to Southeast Asia and the Middle East, focusing on semiconductors, EVs, and infrastructure [4].

The BRICS+ financial reforms are equally transformative. At the 2025 Rio de Janeiro summit, the bloc reaffirmed its commitment to multilateralism and alternative financial frameworks, including a potential BRICS+ currency swap network [5]. While the U.S. dollar still holds 60% of global central bank reserves, the rise of localized systems is eroding its hegemony [4].

Investment Opportunities in the RIC Ecosystem

For investors, the RIC axis offers high-growth sectors:
1. Infrastructure: The RIC’s $3.65 trillion trade with SCO members in 2024 highlights demand for energy pipelines, digital corridors, and logistics hubs [2]. Projects like India’s Chabahar Port and China’s transnational submarine cable network are prime examples [3].
2. Green Technology: Despite U.S. policy shifts, renewables remain resilient. The RIC’s focus on AI-driven energy solutions and lithium battery manufacturing in Hungary and Türkiye presents long-term opportunities [4].
3. Digital Infrastructure: India’s digital services and China’s 5G expansion are creating a $1.2 trillion market for cross-border data flows and cloud infrastructure [5].

Risks and Hedging Strategies

The RIC’s rise is not without risks. Geopolitical tensions, such as U.S.-India trade disputes, could disrupt flows. Additionally, BRICS+’s financial systems are still nascent, with regulatory fragmentation posing challenges. Investors should hedge by diversifying across sectors and geographies, favoring assets with intrinsic value (e.g., commodities, Bitcoin) and avoiding overexposure to dollar-denominated debt [1].

Conclusion

The Xi-Putin-Modi axis is not a fleeting trend but a structural shift in global power. As the U.S. struggles to maintain its economic dominance, the RIC’s localized networks and alternative systems are creating a new investment paradigm. For those willing to adapt, the opportunities are vast—but so are the risks. The key is to balance boldness with caution, leveraging the RIC’s strengths while mitigating its vulnerabilities.

Source:
[1] Strategic Alliances in a Multipolar World: Navigating RIC Convergence [https://www.ainvest.com/news/strategic-alliances-multipolar-world-navigating-ric-convergence-emerging-market-investments-2509/]
[2] China-India Economic Ties: Trade, Investment, and Opportunities [https://www.china-briefing.com/news/china-india-economic-ties-trade-investment-and-opportunities/]
[3] U.S.–India Tariff War 2025: From Strategic Partners to Economic Rivals [https://abclive.in/2025/08/07/u-s-india-tariff-war-2025/]
[4] China's 2025 Outbound Investment: Key Markets & Sector Trends [https://www.china-briefing.com/news/chinas-2025-outbound-investment-key-markets-sector-trends/]
[5] 2025 BRICS Summit: Takeaways and Projections [https://www.stimson.org/2025/2025-brics-summit-takeaways-and-projections/]