1 week ago

Rupee Trade Gains Momentum, But More Internationalisation Steps Remain

India wants more countries to use its rupee for buying and selling goods.

It recently changed trade rules so exporters can receive rupee payments and still get trade benefits.

The use of rupees for exports has increased, but it is still relatively small.

Rupee payments for imports have risen sharply, largely because India bought more oil from Russia.

Russia has collected many rupees but has had difficulty using them.

The Reserve Bank of India has allowed some surplus rupees to be invested in Indian financial products.

The article says India needs agreements with more countries to make rupee trade easier.

It suggests that currency-swap arrangements like China’s could help foreign banks obtain rupees.

The rupee may become more important as India’s global trade grows.

Key facts

Export invoicing: Rupee-invoiced exports reached 8.8% of goods and software shipments in April-May 2026, up from 6.1% a year earlier.
Import invoicing: Rupee-invoiced merchandise imports were 5.8% in April-May 2026, down from 6.6% in April-May 2025.
Import settlement: Rupee-settled merchandise imports rose to 8.4% in April-May 2026 from 1.6% a year earlier.
Trade policy change: Eligible export proceeds received in rupees can now qualify for Foreign Trade Policy benefits and count toward export obligations.
Existing arrangements: India has local-currency arrangements with the United Arab Emirates, Indonesia, the Maldives, and Mauritius.
Main constraint: Russia has accumulated rupees because India’s imports from Russia have grown faster than its exports to Russia.
Global trade share: India accounts for 2.5% of global exports of goods and services, according to the article.

financialexpress.com · 1 week ago