India And Russia Expand Trade In National Currencies
India and Russia have agreed to continue working on a framework that encourages the use of national currencies for bilateral trade. The understanding was reached during the latest summit between the two countries, which focused on economic cooperation, trade and energy.
Reducing Dollar Dependence
Both sides said that increasing transactions in rupees and rubles would help make trade more stable and less dependent on external financial pressures. The aim is to reduce exposure to currency volatility and international sanctions by limiting reliance on the US dollar. Officials noted that the arrangement could simplify payments, lower transaction costs and ensure continuity of trade.
Focus On Key Sectors
The initiative is expected to support trade in sectors such as energy, agriculture, fertilisers and manufactured goods. India has a significant trade relationship with Russia, particularly in oil, defence supplies and commodities. Using national currencies is likely to help exporters and importers complete payments faster, especially when banking restrictions apply.
Long-Term Economic Cooperation
The discussions form part of a wider programme on economic cooperation extending to 2030. Both countries want to increase bilateral trade volumes and have identified currency settlement as a priority area. The move aligns with efforts by several nations to diversify trade settlement away from traditional reserve currencies.
