Over the past few years, several measures have been undertaken by the RBI to enhance the role of INR as an international currency through its increased usage for both current and select capital account transactions.
In its annual report released on Friday, the RBI said the ascendence of INR as an invoicing and settlement currency is likely to offer protection against exchange rate risk, reduce the requirement for maintaining costly forex reserves in convertible currencies, and provide other benefits.
In this context, the use of the domestic currency also facilitates the development of bilateral exchange rate markets and reduces transaction costs in foreign exchange transactions.
There has been a considerable pick-up in INR-based invoicing and settlement since July 2022, RBI said.
During the period August 2022-July 2025, the compound annual growth rate (CAGR) of imports and exports invoiced in INR has been at 20.9 per cent and 12.7 per cent, respectively.
Further, the latest data on trade invoicing and settlement in Indian Rupee (INR) during 2025-26 exhibit a year-on-year growth for export invoicing (6.5 per cent), import invoicing (9.5 per cent), export settlement (2.7 per cent) and import settlement (41.2 per cent), over the corresponding period of the previous year. In absolute terms, INR invoicing in imports stood at Rs 2.85 lakh crore in 2025-26, up from Rs 2.60 lakh crore in 2024-25 and Rs 1.94 lakh crore in 2023-24.
In case of exports, the invoicing stood at Rs 3.27 lakh crore during the last fiscal, up from Rs 3.07 lakh crore in 2024-25 and Rs 2.87 lakh crore in 2023-24, the data showed.
INR settlment in imports stood at Rs 1.60 lakh crore during 2025-26, compared to Rs 1.13 lakh crore in 2024-25 and Rs 99,680 crore in the year before.
In case of exports, the settlements were valued at Rs 1.72 lakh crore during 2025-26, Rs 1.67 lakh crore in 2024-25 and Rs 1.75 lakh crore in 2023-24.
The INR internationalisation process has been mutually beneficial to all trading partners, and based on the principles of reciprocity, it has given a fillip to trade invoicing in several other emerging market currencies, RBI said.
The Indian rupee traded with a depreciating bias during the last fiscal year amidst trade-related uncertainties, geopolitical tensions, and foreign portfolio investment (FPI) outflows in the equity segment.