“India’s economy is expanding, with an increasing role in international trade. Gradually and steadily, India has entered new markets, countries, and products, particularly in services. The objective is to offer the rupee as an alternative currency for settling international trade,” Das said at a fireside chat as part of WEF’s annual summit in Davos, Switzerland.
Das said that it was incorrect to describe the internationalisation of the rupee as an effort towards ‘de-dollarisation’. “Complete dependence on one currency can be risky, as the entire global trade would be subject to the volatility of that currency. If there are multiple currencies, international trade and the system become less susceptible to risk. While the dollar continues to maintain its dominance, efforts to internationalise the rupee are not intended to replace the dollar,” said Das.
According to Das, external risks to India include geopolitical uncertainties and geo-economic fragmentation, impacting global supply chains that have not yet normalised.