Since 2025, India has shown a growing preference for offering INR-denominated EXIM credit lines to its South Asian neighbours, adding up to 1.27 billion USD in less than two years.
Whether this INR-denominated assistance is repayable by its neighbours will depend on several factors.
This brief explains that India's preference for INR-denominated assistance furthers its long-term strategic investment vis-à-vis financial integration, influence, and much-needed bilateral interdependence: https://www.orfonline.org/expert-speak/regionalising-the-rupee-india-s-new-lending-approach-in-south-asia
orfonline.org
Regionalising the Rupee: India’s New Lending Approach in South Asia
September 6, 2026 443 1
