“Finance Minister Nirmala Sitharaman Reveals India in Talks with 22 Countries for Rupee Trade

Finance Minister Nirmala Sitharaman revealed in an exclusive interview with NDTV that approximately 22 countries are actively exploring the possibility of conducting bilateral trade with India using the Indian rupee. She explained that many of these nations are facing challenges with their dollar reserves but need to continue their essential trade activities. These countries view the Indian rupee as a stable currency, making it an attractive option for trade.

Sitharaman emphasized India’s commitment to understanding the development needs of these nations. Prime Minister Narendra Modi has been in contact with their leadership to align them with common development goals. This communication has made it easier for these countries to discuss the idea of conducting trade in rupees.

The shift towards conducting trade in currencies other than the U.S. dollar has gained momentum following sanctions imposed on Russia by the U.S. and its European allies in response to the Ukraine crisis. India has already been using a special rupee-rouble window for settling oil trade with Russia.

Sitharaman also highlighted the significant role that digital technology plays in supporting small and medium-sized businesses. She specifically mentioned ONDC (Open Network for Digital Commerce), a digital public infrastructure created by India. ONDC enables even the smallest craftsmen to showcase their products to a global audience. This digital transformation and formalization of the Indian economy are expected to greatly benefit micro, small, and medium-sized enterprises (MSMEs).

In summary, Finance Minister Sitharaman discussed India’s growing role in facilitating rupee-based bilateral trade with multiple countries, the importance of digital technology in supporting businesses, and the positive impact of initiatives like ONDC on MSMEs.