India Makes History Making First-Ever Rupee Payment for Purchase of Crude Oil from UAE

India, the world's third-largest energy consumer, made its inaugural rupee payment for UAE crude, signaling a strategic move to promote the local currency globally. This aligns with the Reserve Bank of India's July 2022 decision, allowing importers to pay in rupees. The initiative aims to diversify oil suppliers, cut transaction costs, and establish the rupee as a trade settlement currency. Despite success in non-oil trade settlements, oil exporters remain hesitant, citing fund repatriation concerns. In the 2022-23 fiscal year, India spent $157.5 billion on 232.7 million tones of crude, with West Asia contributing 58% of supplies.

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