The post-Bretton Woods international financial system, characterised by the hegemony of the U.S. dollar, has created systemic vulnerabilities for emerging market economies (EMEs). This paper investigates the persistent challenge of "original sin"—the inability of nations like India to borrow and trade extensively in their own currency—and its profound implications for economic stability and policy autonomy. Focusing on India within the BRICS (Brazil, Russia, India, China, South Africa) framework, this paper argues that the over-reliance on the U.S. dollar for debt issuance and trade invoicing exposes the Indian economy to severe exchange rate risk, imported inflation, and constraints on its monetary policy. Through a comprehensive review of literature and an analysis of India’s economic structure, this paper demonstrates how dollar-denominated liabilities and trade settlement mechanisms can amplify external shocks, leading to financial instability. It then critically examines the BRICS bloc's strategic response: the creation of alternative financial institutions like the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA), alongside a concerted push for a Local Currency Settlement (LCS) system. The paper contends that India’s active participation and leadership in these de-dollarisation initiatives are not merely a foreign policy choice but a crucial economic imperative. By fostering a multi-polar currency system, India can mitigate its exposure to volatile capital flows, enhance the international role of the Indian Rupee, and achieve greater economic sovereignty. The conclusion posits that while the path is fraught with challenges, including the U.S. dollar's deep-rooted network effects and internal disparities within the BRICS, India's strategic pivot towards local currency trade is fundamental to securing its long-term growth and development objectives in a multipolar world.