India's Rupee Payment Plan for Oil Imports Faces Hurdles
• India's attempt to use rupee for oil imports faces resistance over fund repatriation and high costs • Suppliers prefer default US dollar payments due to concerns about getting funds out of India • RBI allowed importers to pay in rupees in July 2022 to internationalize currency • Success seen in non-oil trade with some countries, but oil exporters still avoid rupees • Oil ministry says no oil imports settled in rupees in 2022-23 fiscal year so far • Suppliers highlight issues with converting funds and exchange fluctuation risks