India Must Strive To Carry Out Bilateral Trade in Rupee And Local Currency With Neighboring Countries
With Chandrayan 2 heading for its destination, it is time that India starts concentrating on improving the bilateral trade mechanism with immediate neighbours and other friendly countries.
To start with India can study the financial structure of SAARC and have talks to establish a procedure to carry out all bilateral trades only in Indian Rupees and the Currency of that particular country. Though if every one agrees then we may trade with a new Standard called SAARC CURRENCY.
Next, India together with SAARC and BIMSTEC countries together must negotiate for cross border transaction with ASEAN, Central Asian Countries and the Middle East to also trade in either the SAARC Currency or the Indian Rupee and their respective local currency. Also all trade and monetary transactions should be fully digitized.
India and ASEAN, Central Asian and Middle East countries have large-scale cross-border transactions in trade and tourism sectors. The Indian diaspora in fact is sustaining the human resources requirement in many countries. There is a huge demand for real-time settlement in electronic transactions. Therefore India must suggest and persuade these countries to have an exclusive and closed transaction chains.
Now the Indian economy has expanded and expanding at a fast rate and trading with neighboring economies much more. Therefore we need not burden ourselves with Financial crisis happening or being created in so called developed countries or the First World. With constant threat of American CAATSA, India too must impose similar reciprocal laws. We must also strive to change the traditional reserve and settlement system based on the US dollar. India and Russia have already have an established procedure for this. It needs to reciprocated even with China and for buying our much needed oil from Iran.
Countries of the World need to see the size of Indian economy and view the existing International monetary system objectively. They should adopt the cross-border settlement system as suggested by India.
As the Indian and Chinese economy gets bigger and more competitive, these two countries will play a greater role in the international financial system. The Americans and the Europeans must face this reality and desist from pursuing protectionism and unilateralism, on the contrary, they must enhance trade facilitation and boosts development of the new financial industry.
