Beyond Borders: Decoding India's Push To Make Rupee A Trade Powerhouse

Last Updated:October 21, 2025, 15:54 IST

India is treading cautiously but wants the rupee to be the benchmark for international transactions, which would reduce pressure for maintaining huge foreign reserves

The RBI is mulling and working at taking steps to permit free trade partners to settle transactions more easily if the Indian rupee is used.

In yet another attempt to make India’s voice matter globally, the government has plans to make the rupee reign in the world, become the main transaction trade currency, and be valued beyond the Indian territory.

The move mirrors a similar attempt by China, which has been working on this for years and has ended up upsetting American President Donald Trump. Trump is also miffed with BRICS as he has accused the grouping of trying de-dollarisation and launching their own currency.

India, for sure, doesn’t want to give this impression to Trump and antagonise him. Yet, Prime Minister Narendra Modi and the government are keen that India has a currency of its own that is recognised globally.

What government sources have told News18 is that India is treading cautiously but wants the rupee to be the benchmark for international transactions. This would mean India won’t be under pressure for maintaining huge foreign reserves. However, sources say this is a long-term plan and India wants to popularise the rupee as an important currency across borders. It would also mean no pressure to maintain huge gold reserves and this would ease pressure on the Reserve Bank of India (RBI).

The RBI is mulling and working at taking steps to permit free trade partners to settle transactions more easily if the Indian rupee is used. This would encourage India’s trading partners to use the rupee easily, lowering the risks for industry and making the country’s economy less vulnerable to external pressure and shock. Some countries India is reaching out to are Peru, UAE, Oman, and European Union.

While all this could take some time to become a reality, when it does, the rupee could resonate across the world.

Pallavi Ghosh

Pallavi Ghosh has covered politics and Parliament for 15 years, and has reported extensively on Congress, UPA-I and UPA-II, and has now included the Finance Ministry and Niti Aayog in her reportage. She has als...Read More

Pallavi Ghosh has covered politics and Parliament for 15 years, and has reported extensively on Congress, UPA-I and UPA-II, and has now included the Finance Ministry and Niti Aayog in her reportage. She has als...

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