Industry, trade experts see promise in rupee settlement

Stakeholders in trade and domain specialists are cautiously optimistic on settlement of trade in Rupee with await-and watch-approach, as the mechanism draws global interest from countries across regions.

- NIVEDITA MUKHERJEE

Naren Goenka, Chairman of Apparel Export Promotion Council The RBI's move to allow settlement of trade in Rupee will definitely help in trading with countries where forex situation is not good, who don't have enough dollars and are looking to diversify due to sanctions. There is no particularly good time for a measure like this which is always welcome but geopolitical conditions have converged to make this an opportunely taken step.

For the textile sector it will facilitate trade, especially with countries like Russia where we are looking to tap the demand potential for textiles and apparels. The mechanism will definitely help, slowly and steadily in expanding trade with countries which don't have enough dollar reserves and use the bilateral rupee trade. Still there are concerns about some banks not dealing with the countries which are under sanctions.

Overall, it is a good step and we are looking forward in using this quite regularly with different countries-not the regular traditional ones like Japan, Australia but others as they come forward to adopt the mechanism.

Gaurav Moda, Ernst & Young India Energy Industry Head: As one of the world's fastest growing large economies, India's energy needs continue to expand rapidly. Resources from across the world are essential to fulfil such needs.

In this light, India's robust financial network connected globally has been critical in providing flexibility for direct settlements. This is core to fulfilling the energy needs for India's continued growth path, which all of us benefit from.