Sanctions, bureaucracy, and logistics are the primary obstacles to “diversifying economic ties and correcting the existing imbalance”, but these can be surmounted through SMEs playing a greater role, more localization and procedure simplifications, and optimizing their trade corridors.
Yes, granted. But would India continue to buy using rupees that are not convertible on the global market and usable only within India, while selling in hard currency
In March 2024, I talked to an Indian commodities trader who lives (lived?) in Moscow. I asked him what Russia does with all the INR from oil sales to India. He looked at me in utter disbelief and replied they don't use INR much anymore, preferring to use Emirati Dirhams (AED).
India's social and industrial development strategies and status are not the same as China's. Therefore, India's trading patterns and its ability to reduce dependence on the USD differ. Somebody who knows more about India's imports and exports, please shed some light.
In well-structured trade agreements, settling transactions in the respective national currencies (or goods for goods) is perfectly reasonable when trade is balanced. Switching to the dollar is unnecessary. Chinese or Arab (UAE, SA) currencies would also be viable alternatives.
Yes, granted. But would India continue to buy using rupees that are not convertible on the global market and usable only within India, while selling in hard currency
In March 2024, I talked to an Indian commodities trader who lives (lived?) in Moscow. I asked him what Russia does with all the INR from oil sales to India. He looked at me in utter disbelief and replied they don't use INR much anymore, preferring to use Emirati Dirhams (AED).
India's social and industrial development strategies and status are not the same as China's. Therefore, India's trading patterns and its ability to reduce dependence on the USD differ. Somebody who knows more about India's imports and exports, please shed some light.
Maybe a dumb question, but, what are SMEs?
Small and medium-sized enterprises (SMEs)
" The authors conclude that Russia and India’s $100 billion trade goal by 2030 is realistic, "
As long as international trade keeps being measured, and denominated in dollars. The problems will continue.
In well-structured trade agreements, settling transactions in the respective national currencies (or goods for goods) is perfectly reasonable when trade is balanced. Switching to the dollar is unnecessary. Chinese or Arab (UAE, SA) currencies would also be viable alternatives.
That's confusing symptoms with causes.