Swadeshi Jagaran March (SJM), an economic wing of the Rashtriya Swayamsevak Sangh (RSS) in its recently held national Council meeting has urged the Centre to encourage more countries to use the rupee as a trade currency. ‘’India can do this by signing bilateral agreements with other countries that would allow for rupee-denominated trade,’’ said SJM national co-convenor Dr Ashwani Mahajan.
‘’Rashtriya Parishad of Swadeshi Jagran Manch congratulates the government for the historic step of approving trade settlement in rupees,’’ said Dr Mahajan. He further added that the SJM National Council has called upon the Centre to make it easier for businesses to use the rupee for trade. This could involve providing more liquidity in the rupee market and making it easier for businesses to open rupee accounts. ‘Promote the use of the rupee in international financial markets. This could involve encouraging foreign investors to invest in Indian rupee-denominated assets,’’ he noted.
Further, Dr Mahajan said that the national council also urged the Centre to develop a robust rupee-denominated bond market. This would provide businesses with a wider range of investment options and make it easier for them to raise capital in rupees.‘’Promote the use of the rupee in trade with neighboring countries. This would help to reduce the need for India to use foreign currencies for trade with these countries. Work with other countries to develop a common framework for rupee-denominated trade. This would make it easier for businesses to trade in rupees with countries that do not have bilateral agreements with India,’’ he added.
According to Dr Mahajan, the National Council is of the view that there is no need to make any change at this stage in policy of restrictions on capital account convertibility as this has proved to be a saviour in international financial crises in the past.
‘’By taking these steps, India can help to make the rupee a more widely accepted currency for international trade. This would be a significant step towards reducing India’s reliance on the dollar and could have a number of benefits for the Indian economy. Moreover, India can help to reduce its reliance on the dollar for international trade and payments. This would help to insulate the Indian economy from fluctuations in the value of the dollar and could also help to boost India’s exports,’’ opined Dr Mahajan.