In a positive sign for the rupee and the economy, there is a pick-up in exporters and importers invoicing in rupees..
Recent Reserve Bank of India data shows the rupee invoicing for export of goods and software grew 4.7 per cent YoY in April-November 2025 and was ₹2,00,056 crore. Similarly, import of goods and software invoiced in rupee grew 24.5 per cent YoY and was ₹1,97,127 crore. However, share of such trade still remains small, with share of rupee invoicing as a percentage of all currencies standing at 6.1 per cent for exports and 4.9 per cent for imports.
For FY25, the exports invoiced in rupee grew 7 per cent YoY, while rupee imports grew 34 per cent.
The RBI, via a circular in July 2022, allowed invoicing and payments for international trade in rupee in a move aimed at promoting global trade and internationalisation of the rupee. Under this, specified banks are permitted to open Special Rupee Vostro Accounts (SRVA) of partner countries. In case of Indian exports, the proceeds shall be paid in rupee from balances in the designated vostro account of the overseas importer, and for imports, the payment shall be credited to the special vostro account in rupee against the invoices.
Trade analysts note that India currently has SRVA facility with around 22 countries with overseas trade in rupee happening with key partners such as Russia, Sri Lanka, Singapore, among others. Separately, in 2023, India also tied up with the United Arab Emirates (UAE) for trade to be settled in rupees and dirhams.
Simple mechanism
Ajay Sahai, Director General & CEO, FIEO, said the SRVA has emerged as a good and simple mechanism for Indian exporters and importers, and is gaining traction in recent months. Some of RBI’s recent moves including those of increasing the timeline for settlement of trade proceeds under FEMA regulations have also highlighted their commitment to promote more cross-border transactions in rupee, he added.
Paras Jasrai, Associate Director, Ind-Ra, said that in general, overseas trade in rupee reduces dependence on foreign currencies such as the dollar and is also driven by agreements with other nations. However, the share still remains low and there is room for growth given the US dollar and euro domination, he adds.