Rupee-Ruble In, US Dollar Out? How De-Dollarisation Could Help India and Russia Reach $100 Billion Trade Target
India and Russia are exploring greater use of the rupee and ruble for bilateral trade, reducing dependence on the US dollar. Could de-dollarisation be the key to achieving their ambitious $100 billion trade target?
By Pranjal Gupta
New Delhi, July 10: India and Russia are aiming to achieve $100 billion in bilateral trade by 2030, but to do that, they first need to de-dollarise the transactions, a Russian official suggested. Both countries are developing mechanisms to expand payments and settlements in local currencies, bypassing the US dollar. If that happens, dependence on the dollar will reduce and strengthen their local currencies - the Indian rupee and the Russian ruble.
“It is extremely important to create an independent system with the use of local currencies,” said Zlata Antusheva, Moscow’s Trade Representative to India, reported by the RT.
As of now, three Russian banks - Sberbank, Gazprombank, and VTB Bank - are already operating in India. Meanwhile, Russia's largest private bank, Alfa Bank, may open operations in India soon, Antusheva said.
Expansion to BRICS Level
In this endeavour, China and Russia have already stopped using Western currencies for bilateral trade.
Antusheva said the goal is not just to eliminate the dollar in dealings between the two nations, but also to establish the mechanism at the BRICS (Brazil, Russia, India, China, and South Africa) level. Apart from the founding members, Iran, Egypt, Ethiopia, and the United Arab Emirates (UAE) are also part of the bloc, among other nations.
“Our main goal is to de-dollarize and to focus on development of our own currencies, of course, after some time, not only (at the) bilateral level but at the regional level, at the BRICS level,” said Antusheva.
According to her, Russia is trying to make banking much simpler for businesses. For example, through Russia's Sberbank, companies can now complete international financial transactions in just 10 minutes.
Focus Trade on Sectors Other Than Oil
Instead of just trading traditional goods like oil, Russia's trade representative, Antusheva, is urging both countries to shift their focus toward high-tech and modern industries such as electronics, artificial intelligence, pharmaceuticals, and advanced manufacturing.
She emphasised that both nations need to build their own independent technological infrastructure so they do not have to rely on Western systems, which aligns with India's goal of self-reliance.
To kickstart this effort, they are building a joint India-Russia AI Cybersecurity
Center designed to protect their digital systems from threats, with the long-term plan of sharing this security technology and connecting artificial intelligence networks across other BRICS nations.
