Rupee Currency To Be Utilized In International Trade Through Special Vostro Accounts : Piyush Goyal

Commerce and Industry Minister Piyush Goyal expressed hope that foreign trade transactions will soon be facilitated in the Indian rupee, as several banks from various countries are in the process of opening special Vostro accounts with Indian banks as reported by pti.

The Reserve Bank of India (RBI) has granted approval to 60 requests to open Special Rupee Vostro Accounts (SRVAs) for correspondent banks from 18 countries, including the UK, Singapore, and New Zealand.

He claimed that the RBI is discussing the situation with the central banks of other nations. "We will soon start seeing operationalisation of this rupee trading in international trade with several countries," Goyal told reporters here.

He also emphasized that India is actively engaged in advanced negotiations for free trade agreements (FTAs) with prominent developed regions such as the European Union, the United Kingdom, and Canada. In addition to these, India has also received keen interest from groups like the European Free Trade Association (EFTA), Gulf Cooperation Council (GCC), and Eurasian Economic Union (EAEU) to commence talks for similar trade pacts.

"The whole world wants to have a comprehensive economic partnership agreement with India," the minister said. On the second phase of the production-linked incentive scheme for the textiles sector, he said that extensive stakeholder conversations have taken place regarding this.

"I am quite confident that very soon we will be able to finalise the contours of the scheme and take it up for approval at the highest level," he added. Goyal claimed that while the government is signing trade agreements with nations like the UAE and Australia, domestic exporters will be able to push exports. Previously, Indian textile exporters faced customs tariff disadvantages in developed markets compared to nations like Bangladesh.

Goyal stated that the textiles ministry has agreed to form an ESG (environmental, social, and governance commitments) task force to promote sustainability in the textiles industry. The task group will provide ideas to improve the sector's sustainability and environmental friendliness.

The Ministry of Textiles has recently introduced a portal aimed at boosting the sales of handicrafts and handloom products. In addition, discussions have been held with the Finance Ministry regarding the viability and other concerns related to the units of the National Textiles Corporation, though a final decision has not yet been reached. The ministry is also actively collaborating with the Ministry of Agriculture and scientists to develop varieties of cotton crops that are resistant to pink worms, which have been affecting certain areas.

Goyal expressed optimism that the textiles sector would successfully reach its target of USD 100 billion in exports. He also highlighted the importance of collaborating with the industry to elevate the overall economic value of the sector, both domestically and internationally, to a staggering USD 250 billion. "It is possible. We will definitely achieve that," he added. Goyal was in Rajkot as a participant in the Saurashtra Tamil Sangamam, which is being held as part of the 'Ek Bharat Shreshtha Bharat' Initiative in Gujarat.