Russia and India bypass dollar with 90% trade in local currency

Russia and India are increasingly using their national currencies for trade, with about 90% of direct payments bypassing the U.S. dollar.

The move reflects a global trend to reduce reliance on the dollar amid evolving economic conditions.

"Mutual payments in national currencies are stable. As of today, national currencies account for around 90% of direct payments between Russia and India," Russian Ambassador to India Denis Alipov said.  

Trade between Russia and India has been on the rise.

Indian statistics show an 8.6% increase in the first 11 months of 2024.

“Russian exports reached $60 billion (up by 7.7%), while supplies of Indian goods rose to $4.5 billion (up by 23.3%). Russia is one of India’s four biggest trade partners, while in terms of the volume of products supplied, it is the second-largest after China,” Alipov detailed.

Trade between the two countries touched $65 billion in 2023-24.

India's exports were just $4 billion and imports $61.4 billion.

Russia and India are discussing recognising each other’s payment systems, Mir and RuPay, to enhance financial integration.

They are using not only Russian rubles and Indian rupees but also the Chinese yuan and UAE dirhams in their mutual trade settlements.

There's interest from the Indian government in projects within Russia’s Far East and Arctic regions.

The two countries are collaborating in the defense and nuclear sectors.

Russia plays a key role in India’s nuclear energy production and contributes to indigenous defense initiatives.