India hopes to Russia towards Rupee trade settlement

17/01/2023

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India hopes to Russia towards Rupee trade settlement

As per the Indian trade ministry, India is hoping about rupee trade with Russia as it might pick up in the future after the two sides talked about facilitating trade in local currencies recently.

India has been expanding a rupee trade settlement mechanism with Russia since soon after Moscow invaded Ukraine in February but the countries have not formalized the rules yet.

India’s control over Russia:

India has become Russia’s largest oil buyer after China, buying discounted Russian crude well below a $60 price cap agreed by Western nations while also trying to close a growing trade deficit with the country.

Satya Srinivas, a secretary at the trade ministry informed media that India is looking to enhance exports of electronic items to Russia.

Relations between two countries:

The two countries are engaging “at all levels” to settle issues related to trade barriers and a payments mechanism.

India and Russia has already a strategic partnership in different areas like defence, co-operation, trading, oil supplies etc.

Russia has always take stand point in favor of India at many international level issues, talks and projects.

Rupee Trade Settlement:

India’s rupee trade settlement mechanism is an alternative of using rupees instead of dollars and other big currencies for international transactions.

After declaring rupee trade settlement, Indian rupee is attracting interest from more countries.

Currently Russia, Sri Lanka, Mauritius and Bangladesh are some of the countries that are interested on rupee trade with India.

Tajikistan, Cuba, Luxembourg and Sudan had already started talking to India about using the rupee trade settlement.