India to promote rupee trade settlement with currency-strapped partners: FM

India's Finance Minister has indicated the country's intention to promote trade settlement in rupees with partner nations facing hard currency shortages. The move is aimed at facilitating commerce while helping countries manage foreign exchange constraints.

The mechanism has been developed against the backdrop of economic downturns affecting many nations adversely, according to the FM. Rupee-based settlement could provide an alternative to dollar-denominated transactions and ease pressure on countries with limited forex reserves.

This initiative reflects India's broader strategy to internationalise the rupee and strengthen trade ties with developing economies. By enabling rupee settlements, India seeks to create mutually beneficial trade arrangements while reducing dependency on hard currencies for cross-border transactions.