The Reserve Bank of India (RBI) has reported a significant increase in the use of the Indian rupee (INR) for trade invoicing and settlement. Data compiled by the RBI indicates that the internationalisation of the INR has benefitted all trading partners involved.
In recent years, the RBI has implemented several measures aimed at enhancing the role of the INR in international transactions, both for current and select capital account activities.
In its latest annual report, released on Friday, the RBI highlighted that the rise of the INR as an invoicing and settlement currency could offer various advantages, including protection against exchange rate risks, a reduction in the necessity for maintaining costly foreign exchange reserves in convertible currencies, and additional benefits. The use of the domestic currency further facilitates the development of bilateral exchange rate markets, thereby reducing transaction costs in foreign exchange dealings.
Since July 2022, there has been a marked increase in INR-based invoicing and settlement. According to RBI, from August 2022 to July 2025, the compound annual growth rate (CAGR) for imports invoiced in INR was 20.9%, while exports recorded a CAGR of 12.7%.
The most recent data for the fiscal year 2025-26 shows remarkable growth in trade invoicing and settlements in INR. Year-on-year changes were observed in export invoicing (6.5%), import invoicing (9.5%), export settlements (2.7%), and import settlements (41.2%) compared to the preceding fiscal year.
In terms of absolute numbers, invoicing for imports in INR reached ₹2.85 lakh crore in 2025-26, increasing from ₹2.60 lakh crore in 2024-25 and ₹1.94 lakh crore in 2023-24. For exports, invoicing climbed to ₹3.27 lakh crore in the latest fiscal year, up from ₹3.07 lakh crore in 2024-25 and ₹2.87 lakh crore in 2023-24.
Regarding settlements, INR-import transactions were valued at ₹1.60 lakh crore during 2025-26, compared to ₹1.13 lakh crore in 2024-25 and ₹99,680 crore the previous year. For exports, settlements in INR amounted to ₹1.72 lakh crore in 2025-26, up from ₹1.67 lakh crore in 2024-25 and ₹1.75 lakh crore in 2023-24.
The RBI emphasized that the internationalisation of the INR has been mutually advantageous for all trading partners and has fostered trade invoicing in various other emerging market currencies, based on principles of reciprocity. Despite challenges including trade-related uncertainties, geopolitical tensions, and foreign portfolio investment outflows, the Indian rupee exhibited a depreciating trend in the last fiscal year.
Published on May 29, 2026.
