Well, the year 2023 can be a historic year for India, as our nation is moving ahead on the track of achieving something remarkably huge that none of the Asian Nations has achieved till now. Many of us might have heard or read that India is currently in talks with 18 Nations in order to make an agreement where those nations would accept the ‘Indian Rupee’ over the US Dollar (American Currency) for carrying out International Trade & Commerce. Well, during the last year 2022, India formed an agreement with Russia to carry out the Trade Settlements in the Indian Currency, i.e. the Indian Rupee. Now, this year it can be seen that India has been successful in attracting more nations for the same trade settlement mechanism!

The good news for the Indian Economy is that India is inching closer to the process of De-Dollarization, as the Modi Government is interested in ridding the nation’s dependence upon the US Dollar for intra-national trade. As several nations have expressed their interest in facilitating international trade in the Indian National Rupee (INR) over the US Dollar to make the process smooth. Moreover, the Indian Government too has permitted those nations to use the Indian Rupee for carrying out International trade transactions.

Now, it is important to note that the Union Minister of State for Finance, Shri Bhagwat Karad informed in the Rajya Sabha (Upper House of the Parliament) that the Reserve Bank of India (RBI) has approved banks from 18 nations to open ‘Special Rupee Vostro Accounts’ (SRVAs). The first nations, which have received approval from RBI, are Sanctions-hit Russia and the Dollar-strapped Sri Lanka. The MoS, Finance also stated in the Rajya Sabha that out of the 18 countries, Russia has been most vocal about trade in the local currency for furthering the de-dollarization process. Further, the minister also mentioned that India, however, has been supporting the idea of trade & commerce in the local currency majorly to boost the exports of our nation!

The 18 Nations that have been allowed to carry out International Trade in the Indian National Rupee (INR) are as follows –

1) Russia

2) Singapore

3) Sri Lanka

4) Botswana

5) Fiji

6) Germany

7) Guyana

8) Israel

9) Kenya

10) Malaysia

11) Mauritius

12) Myanmar

13) New Zealand

14) Oman

15) Seychelles

16) Tanzania

17) Uganda

18) United Kingdom.

The numbers clearly indicate significant progress in the development of mechanisms to settle international trade in Indian Rupees. In the coming days, there is a very high probability that we can see the names of several more nations on this list. It is also a very proud moment for us since not only the Asian Nations but also European Nations like the United Kingdom&Germany, who are two of the largest economies of the world too have adopted the Indian Rupee to carry out the International Trade by replacing the US Dollar!

Now, the question is that what are the Special Rupee Vostro Accounts or SRVAs? A Vostro Account is an account that domestic banks hold for foreign banks in the former’s domestic currency, in this case, the Indian Rupee. The SRVA is a separate structure that complements the current system and uses freely convertible currencies. The process of SRVAs started last year in the month of July when the RBI issued detailed guidelines on cross-border trade transactions in the Indian National Rupees (INR). “It has been decided to put in place an additional arrangement for invoicing, payment, and settlement of exports/imports in INR,” India’s central bank, RBI remarked.

In conclusion, we can say that this remarkable step by the Modi Government can be seen as the first major step to make the Indian Rupee stronger in the international market. In this way, India has shown the world that we are the ‘World’s 5th Largest Economy’ currently & we also have the potential to achieve several heights when it comes to the field of the World Economy. It is very much clear that New India under the leadership of PM Narendra Modi no longer tolerates the hegemony of the United States of America (USA). Moreover, India will take all those necessary steps, which are required for the progress & prosperity of our country!