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India and Japan plan direct yen-rupee trade settlement framework
Livemint··1 Jul
India and Japan are advancing a local-currency settlement framework allowing direct yen-rupee transactions, reducing reliance on the US dollar, according to reports July 1. The proposal may feature in a joint statement after Prime Minister Narendra Modi meets Japanese counterpart Sanae Takaichi at the sixteenth India-Japan Annual Summit in New Delhi from July 1 to 3.
Prism
What It Means For You
- Bilateral trade costs may fall if dollar conversion is bypassed.
- Businesses trading with Japan could see faster payment settlement.
- Rupee internationalisation gains a major economy as partner.
What's Happening
- Modi and Takaichi meet at the sixteenth annual summit July 1-3.
- A yen-rupee framework may appear in the joint statement.
- Japanese non-residents could open accounts with Indian banks.
Trade Partnership
- Takaichi took office in late 2025 and is on her first India visit.
- India and Japan held their fifteenth summit in Tokyo in August 2025.
- Both leaders met on G7 sidelines in France earlier in June.
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