Jaishankar Backs Trade in National Currencies, Pushes for Better Connectivity with Central Asia

By A Staff Reporter

New Delhi: At the India-Central Asia Business Council meeting in Delhi, External Affairs Minister Dr. S. Jaishankar emphasized the urgent need to deepen financial and physical connectivity between India and the Central Asian region, marking a strategic push for trade diversification and regional integration.

Addressing delegates from Central Asia and Indian business leaders, Dr. Jaishankar highlighted the importance of banking and currency cooperation in easing trade flows. “Closer engagements between our banks and financial sector will definitely strengthen our economic interaction,” he said, welcoming the recent initiation of Special Rupee Vostro Accounts (SRVAs) by Central Asian banks in Indian financial institutions.

He also endorsed the growing interest in adopting India’s Unified Payments Interface (UPI) for cross-border digital transactions. “There's been some discussion about the use of UPI, I would certainly support that very strongly,” he noted, adding that mutual trade settlement in national currencies would help reduce dependence on third-party currencies and enhance economic sovereignty.

On the physical connectivity front, Jaishankar acknowledged logistical challenges and stressed the need for investments in key infrastructure corridors. “How do we improve our connectivity, because that has been a big obstacle?” he asked, urging stakeholders to commit more resources to the International North–South Transport Corridor (INSTC) and to expand the use of Iran’s Chabahar Port, which offers a vital trade route to Afghanistan and Central Asia.

According to the EAM, optimizing these routes would significantly cut travel time and costs for Indian exports to Central Asian markets, and vice versa. “Greater use of Chabahar port will surely reduce travel distance and costs,” he added.