![]() Under the so-called gold clause in many of these agreements, the exchange value of the Rupee was fixed in terms of gold, thus effectively protecting holders of Rupee governed by such agreements from devaluation. In early 1960s, the Rupee was the unit of account in India’s payment agreements with eastern Europe. But this, as per the RBI, “makes the simultaneous pursuit of exchange rate stability and a domestically oriented monetary policy more challenging, unless supported by large and deep domestic financial markets that could effectively absorb external shocks.” Lessons from History Internationalisation of Rupee can lower transaction costs of cross-border trade and investment operations by mitigating exchange rate risk. The dollar has been the world’s principal reserve currency since the end of World War II and is the most widely used currency for international trade. Also balancing the strengthening or weakening of a currency means fixing of rates, impacting exports and imports. Current global dynamics of trade demand availability of free currency, which is acceptable to both parties before such transactions are executed. The Rupee trade has been a point of discussion for over a decade now, but it never took off largely due to various geopolitical and economic constraints. One of the best ways to counter this trade deficit is by introducing Rupee trade for major imports. The Indian diaspora in Australia has increased over the past years," he added.India operates a huge trade deficit in excess of $150 billion. "Our people-to-people contacts remain a strong pillar of our partnership. "We have progressed significantly in the areas of defence, security, investment, education, water, climate change and renewable energy, sports, science, health, culture, among others," Modi told the newspaper. He said that since his last visit the bilateral relationship has been "fundamentally transformed" by annual summits, an economic cooperation and trade agreement, and the elevation of relations to a comprehensive strategic partnership. He hoped the visit would allow both countries to identify new areas of cooperation, ranging from new technology, clean energy, critical minerals, mining, cyber space, building resilient supply chains to movement of skilled professionals, according to the interview. ![]() Australia understands India's position and it does not impact our bilateral relationship," Modi said. "An advantage of being good friends is that we can discuss freely and appreciate each other's viewpoint. He also rejected the suggestion that the bilateral relations would be harmed by India's "refusal" to criticise Russia as Australia has been high critical of the country over its war with Ukraine. Our navies are participating in joint naval exercises," he said. "The high degree of mutual trust between us has naturally translated into greater cooperation on defence and security matters. There is alignment of our strategic viewpoints," he said. "As two democracies, India and Australia have shared interests in a free, open and inclusive Indo-Pacific. He said he wants the two countries to push to realise the true potential of closer defence and security ties amid increasing defence links between the two countries recently. PM Modi arrived in Australia on Monday for the third and final leg of his three-nation tour during which he will hold talks with his Australian counterpart Anthony Albanese and attend a community event to celebrate the country's dynamic, diverse Indian diaspora. I am confident that when we are together again in Sydney, we will get the opportunity to explore how we can take our relations to the next level, identify new areas of complementariness and can expand our co-operation," he added. "I have seen that Prime Minister Albanese is the same. "I am not a person who gets satisfied easily," he was quoted by the newspaper as saying. In an interview to "The Australian" newspaper, he said he wants to take the relationship with Australia to the "next level", including closer defence and security ties to help ensure an "open and free" Indo-Pacific. ![]() Prime Minister Narendra Modi has said the Indo-Pacific region faces a number of challenges such as climate change, terrorism, security of sea lanes of communication and piracy, and asserted that India believes they can be addressed only through shared efforts. ![]()
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