Many developing economies face hard‑currency shortages, making it difficult to settle trade in local currencies. India’s initiative seeks to address this challenge by encouraging partner countries to use the rupee for trade settlements.
On 16 October 2026, Finance Minister Nirmala Sitharaman met with representatives from the Atlantic Council during the annual IMF‑World Bank meetings in Bangkok. The discussion focused on India’s proposal to promote rupee trade settlements.
Finance Minister @nsitharaman interacts with Atlantic Council on the sidelines of the IMF-World Bank annual meetings in Bangkok, Thailand. FM Nirmala Sitharaman expresses hope that the India-US trade agreement will be concluded at the earliest, saying it would serve the interests of global trade and strengthen economic ties between the two countries. #India #IMF #WorldBank #Thailand #IMFWBAM2026 @FinMinIndia
Sitharaman explained that India wants partner countries to settle trade in rupees, especially those importing goods from India, to alleviate hard‑currency shortages. She emphasized that the payment should be done in rupees by those countries that import goods from India.
India’s proposal responds to geopolitical tensions and economic downturns that have heightened hard‑currency shortages in partner economies.
India’s proposal responds to geopolitical tensions and economic downturns that have heightened hard‑currency shortages in partner economies.
📡📡 WATCH LIVE 📡📡 Union Minister for Finance & Corporate Affairs Smt. @nsitharaman will interact with the @AtlanticCouncil on ‘India’s economic edge’, on the sidelines of the World Bank-IMF #AnnualMeetings in Bangkok, Thailand, today. Time: 9.00 am local time (7. 30 am IST, 10.00 pm EST) Tune in via the link below 👇 📺 https://t.co/pSaCISkj3W
India is reviewing its trade agreement with the Association of Southeast Asian Nations (ASEAN) to better address importers’ concerns, with rupee settlements potentially playing a key role.
The Atlantic Council was present at the meeting, providing a forum for discussion of the rupee settlement proposal.
🇮🇳 @FinMinIndia's @nsitharaman tells @MichaelKugelman that India's leaders "expect and wish" to have a US-India trade agreement signed soon. "I hope in the interest of global trade...that the trade agreement gets concluded at the earliest." https://t.co/vyQXwDKlbD
Shifting to rupee settlements could help importers avoid the need to secure hard currency for payments, simplifying trade transactions.
The discussion is part of India’s broader strategy to promote rupee settlements and strengthen trade ties with partner countries facing hard‑currency shortages.