Archive · 25 Jul 2026
Rupee Trade Surges with Russian Oil Purchases
India has been using more rupees to pay for imports, especially Russian oil.
This happened between March and May, when India bought a lot of oil from Russia.
The rupee payments for imports were about Rs 1.38 lakh crore, which is around $14.6 billion.
This is a big increase compared to previous years.
The idea is to use the rupee more in international trade to reduce reliance on the US dollar.
This can help India's economy by lowering pressure on its foreign exchange reserves.
However, using the rupee more also means that when the rupee is weak, imports become more expensive.
Some people think this is a good idea because it makes India less dependent on the dollar, while others think it could cause problems because the rupee is not as stable as the dollar.
India settled $14.6 billion in imports using rupees between March and May.
Russian oil purchases surged to $17.13 billion during this period.
Rupee-settled imports accounted for 7.1% of total merchandise imports.
India's trade deficit stood at $119 billion in 2025-26.
Rupee payments for exports were Rs 1.75 lakh crore in 2023-24.
- Who
- India and Russia
- What
- Increase in rupee trade due to Russian oil purchases
- When
- March-May
- Where
- India
- Why
- To reduce dependence on the US dollar and settle trade in local currencies
Pro-Rupee Trade
Dollar Dominance
Currency Diversification
Pro-Rupee Trade
Proponents argue that using the rupee for trade reduces dependence on the US dollar, lowering pressure on foreign exchange reserves and promoting financial sovereignty.
Dollar Dominance
Critics contend that the dollar remains the global standard due to its stability and widespread acceptance, making it the safest choice for international trade.
Economic Impact
Pro-Rupee Trade
Supporters believe that increasing rupee trade can boost India's economic resilience, especially in times of global uncertainty and currency fluctuations.
Dollar Dominance
Opponents argue that a weaker rupee increases the cost of imports, potentially leading to higher inflation and economic instability.
- Period
- March-May
- Rupee Settled Imports
- Rs 1.38 lakh crore ($14.6 billion)
- Percentage of Total Imports
- 7.1%
- Russian Oil Imports
- $17.13 billion (March-May)
- Trade Deficit
- $119 billion (2025-26)
- Rupee Payments for Exports
- Rs 1.75 lakh crore (2023-24)