RBI Report Shows Growing Use of Rupee for Import and Export Invoicing

INR-Based Trade Invoicing and Settlement Continue to Expand Across International Transactions

The use of the Indian Rupee (INR) for import and export invoicing has increased steadily over recent years, according to data compiled by the Reserve Bank of India (RBI). The central bank said ongoing efforts to internationalise the rupee have contributed to greater adoption of INR in trade transactions and settlements.

The Indian Rupee is being used increasingly for import and export invoicing, according to data released by the Reserve Bank of India. The RBI stated that the process of INR internationalisation has been mutually beneficial for trading partners and has supported wider use of the domestic currency in international transactions.

Over the past few years, the RBI has introduced several measures aimed at strengthening the role of the INR as an international currency through its expanded use in both current and selected capital account transactions.

In its annual report released on Friday, the RBI said that the growing use of the INR as an invoicing and settlement currency is expected to provide protection against exchange rate risk, lower the need for maintaining costly foreign exchange reserves in convertible currencies, and deliver additional benefits.

The report noted that the use of the domestic currency also supports the development of bilateral exchange rate markets and helps reduce transaction costs associated with foreign exchange dealings.

According to the RBI, there has been a considerable increase in INR-based invoicing and settlement since July 2022.

During the period from August 2022 to July 2025, the compound annual growth rate (CAGR) of imports and exports invoiced in INR stood at 20.9 per cent and 12.7 per cent, respectively.

The latest data on trade invoicing and settlement in Indian Rupee during 2025-26 showed year-on-year growth in 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) compared with the corresponding period of the previous year.

In absolute terms, INR invoicing in imports reached Rs 2.85 lakh crore in 2025-26, compared with Rs 2.60 lakh crore in 2024-25 and Rs 1.94 lakh crore in 2023-24.

For exports, INR 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.

Import settlements in INR were valued at Rs 1.60 lakh crore during 2025-26, compared with Rs 1.13 lakh crore in 2024-25 and Rs 99,680 crore in the previous year.

Export settlements amounted to Rs 1.72 lakh crore in 2025-26, compared with Rs 1.67 lakh crore in 2024-25 and Rs 1.75 lakh crore in 2023-24.

The RBI said that the INR internationalisation process has been mutually beneficial for all trading partners and, based on the principles of reciprocity, has provided momentum to trade invoicing in several other emerging market currencies.

The report also noted that the Indian rupee traded with a depreciating bias during the last fiscal year amid trade-related uncertainties, geopolitical tensions, and foreign portfolio investment (FPI) outflows in the equity segment.