India considering Turkish proposal for trade in National Currencies

India considering Turkish proposal for trade in National Currencies

NEW DELHI: India is considering a Turkish proposal to conduct bilateral trade in national currencies and has promised to address the banking issues hampering better economic relations.

Turkey's Trade Minister Ruhsar Pekcan held talks with Indian Commerce Minister Suresh Prabhu in New Delhi on Tuesday to enhance trade and investment.

Prabhu told Pekcan that "the proposal received from Turkey to deal in local currency is under consideration" by India's Finance Ministry, according to a Ministry of Commerce statement.

Turkey is keen to reduce its dependence on the US dollar, with Turkish President Recep Tayyip Erdogan pointing out recently, that Ankara was working with 12 countries to use local currencies in international trade .

Turkey has raised concerns about the trade imbalance with India and has sought easier procedures for exporting its agriculture products.

During the 2017-18 financial year, India exported US$5 billion worth of goods to Turkey and imported Turkish products valued at US$2.2 billion.

India is looking to have a free trade agreement with Turkey as early as possible, Prabhu told the Turkish minister. The Indian minister also invited Turkish construction companies to participate in airport projects, which would require US$65 billion worth of investments over the next decade.


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