B'desh, Lanka, and other nations seek to initiate rupee trade with India: Goyal

Commerce and Industry Minister Piyush Goyal stated that Bangladesh, Sri Lanka, and Gulf nations, among others, are interested in initiating trade in rupee with India. This move aims to reduce transaction costs for businesses and is viewed as a game-changing dimension in India's international trade.

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Goyal mentioned ongoing discussions with Bangladesh and Sri Lanka and noted growing interest from countries in the Gulf region. He emphasized the benefits of trading in domestic currencies, highlighting reduced foreign exchange and transaction losses. The engagement is gradually gaining traction, with the UAE being one of the first countries to accept rupee trade. India's stable currency and efforts to expand rupee trade globally are contributing to its appeal. Changes in India's Foreign Trade Policy allow settlement of international trade in rupee, facilitating smoother transactions with partner countries. Banks like HDFC Bank and UCO Bank have opened special Vostro accounts to facilitate rupee trade, with many countries expressing interest in similar arrangements.