ECONOMY
Rupee makes a splash as global trade billing in Indian currency grows in double digits
- IBJ Bureau
- May 31, 2026
The rupee is being increasingly used for import and export invoicing over the years, data compiled by the Reserve Bank of India, shows.
The internationalisation process of the rupee has been mutually beneficial to all trading partners, notes the central bank’s annual report, which was released recently.
Over the past few years, several measures have been undertaken by the RBI to enhance the role of the rupee as an international currency through its increased use for both current and select capital account transactions.
The RBI has added that the ascendance of the rupee as an invoicing and settlement currency is likely to offer protection against exchange rate risk, reduce the requirement for maintaining costly forex reserves in convertible currencies and provide other benefits.
In this context, the use of the domestic currency also facilitates the development of bilateral exchange rate markets and reduces transaction costs in foreign exchange transactions.
There has been a considerable pick-up in the rupee-based invoicing and settlement since July 2022, RBI has said.
During the period between August 2022 and July 2025, the compound annual growth rate (CAGR) of imports and exports invoiced in the rupee has been at 20.9 per cent and 12.7 per cent respectively.
Further, the latest data on trade invoicing and settlement in the rupee during 2025-26 exhibits a year-on-year growth for export invoicing (6.5 per cent), import invoicing (9.5 per cent), export settlement (2.7 per cent) and import settlement (41.2 per cent) over the corresponding period of the previous year.
In absolute terms, the rupee invoicing in imports was at Rs 2.85 lakh crore in 2025-26, up from Rs 2.60 lakh crore in 2024-25 and Rs 1.94 lakh crore in 2023-24.
In the case of exports, the invoicing in the Indian currency was at Rs 3.27 lakh crore during the last financial year, up from Rs 3.07 lakh crore in 2024-25 and Rs 2.87 lakh crore in 2023-24, the data shows.
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