Russia-Middle East-Japan interested trading in Indian Rupee

Due to the fear of Western sanctions and the volatility of the US dollar, some non-Western countries including Russia, Iran, United Arab Emirates, Saudi Arabia, Japan have expressed interest in paying in Indian rupees. India has also opened the door to international trade in rupee through policy reforms to boost bilateral trade.

Prabir Kumar Bhattacharjee, secretary general of India's industry group 'Tea Association of India', told Russian Media Sputnik that importers from countries like Russia and Iran, which are subject to Western sanctions, want to pay the price in rupees for Indian products. In fact, they want to advance trade in this way to avoid economic blockade.

Prabir Bhattacharjee also said that major tea importing countries like UAE, Saudi Arabia, Japan, Sri Lanka and China are also looking to use the opportunity to pay in rupees. Because, in the case of the US dollar, there is a kind of worldwide duty for this.

According to Indian government statistics, India is the world's number one producer and fourth exporter of tea. According to 2021 estimates, about 17.3 percent of India's total tea exports went to Russia, 13.4 percent to Iran and about 8.8 percent to the United Arab Emirates. Imports are expected to increase further this year.

Economic experts say finding an alternative to the US dollar is the need of the hour. According to Ashwani Mahajan, co-convener of Indian economic advocacy group Swadeshi Jagran Manch, India now needs to find alternatives to the dollar to boost foreign trade. He also expressed hope that foreign transactions in rupees will expand in the coming months and years.

Ashwani Mahajan blames sanctions on Iran and Russia for India's retreat from the US dollar. Experts say, India should have encouraged trade in local currency a lot earlier to expand trade.