From Ohhnow News Desk
In a boost to India’s aspirations to promote international trade in the Indian currency, the first sector to conduct business in rupees is slated to be the export of tea. The United Arab Emirates, as well as Russia and Iran, which are under trade sanctions, have expressed willingness to pay in rupees for tea from India. This arrangement could help accelerate India’s trade with Russia and Iran.
The RBI had announced the decision regarding allowing trade settlements in Indian rupee in July this year. While this move is expected to arrest the rupee’s free fall against the dollar and tackle the trade deficit, tea, being a niche industry, may not help restore the trade balance.
However, Indian tea exports may see an 18% hike this year. 230 million kilograms are estimated to be exported this year, in contrast to 195.5 million kilograms in 2021.
Countries such as Iraq, Syria, Turkey, and Poland, which used to import tea from Sri Lanka, are going to be new markets for India, due to the economic crisis in the island nation.