According to India's commerce secretary, the country expects $8-9 billion in bilateral trade with Russia and Sri Lanka in the next two months after allowing international trading in rupees.

 

The Reserve Bank of India permitted importers and exporters to pay in the partially convertible rupee last month, widely perceived as making a trade with Russia and South Asian neighbors easier rather than relying on dollars.

 

Last month, the Reserve Bank of India allowed importers and exporters to pay in the partially convertible rupee, largely regarded as making a trade with Russia and South Asian neighbors easier rather than relying on dollars.

 

"The rupee-denominated sales will be a huge benefit," B.V.R. Subrahmanyam told reporters late Tuesday. "In the next two months, I estimate $8-$9 billion in trade between Russia and Sri Lanka."

 

According to a source with firsthand knowledge of the situation, India's imports from Russia, primarily crude oil, increased roughly fivefold to more than $15 billion between the end of July and the February 24 invasion of Ukraine.

 

However, due to the lack of a financial settlement system with sanctioned-hit Russia, exports plummeted to $852.22 million from $1.34 billion in the same period.

 

The most recent trade numbers between India and Sri Lanka, which is in the grip of an economic crisis, were not immediately available.

 

While calling for a stop to the violence in Ukraine, India has refrained from criticizing Russia, with which it has long had political and security relations. New Delhi defends its imports of Russian goods as part of an effort to diversify supplies, claiming that a sudden halt would raise global prices and harm its consumers.

 

Subrahmanyam stated that the government is working on new trade agreements with nations such as the United Kingdom to enhance exports and counter demand weakening in some of its markets.

 

He anticipates India's merchandise exports to increase to above $500 billion in the current fiscal year, which began on April 1, from around $420 billion the previous year.