July 25, 2026: Even as the value of the rupee tumbled to multiple all-time lows following the onset of the war in West Asia, India used its domestic currency to pay for nearly $15 billion worth of imports in March, April and May. The payment in rupees was likely for oil bought from Russia, whose share in India’s oil imports surged after the US and Israel’s attack on Iran in late February led to the closure of the Strait of Hormuz.

According to data released by the Reserve Bank of India (RBI) this week, imports worth Rs 1380 billion were paid for in rupees during the three months in question, calculations by The Indian Express showed. 

This accounted for 7.1% of India’s merchandise imports in the three months and is approximately equivalent to $14.6 billion at the average exchange rate of 94-per-dollar that prevailed during March-May.

In the previous three months — December 2025 to February 2026 — imports worth Rs 425.06 billion were settled in rupees, equal to 2.4% of total inbound shipments.

The rupee’s depreciation will only explain a small part of this increased rupee settlement of imports,” said Madan Sabnavis, Chief Economist at Bank of Baroda, instead pointing to the sharp rise in India’s purchases of Russian oil starting March.

The imports paid for in rupees during March-May is far more than before and exceeds the total for 2023-24 (Rs 996.80 billion ) and 2024-25 (Rs 1130 billion). In 2025-26, the rupee was used to pay for imports worth Rs 1720 billion.

Supplies from Russia

First announced on March 12, the US sanctions waiver on buying sanctioned Russian crude oil led to a big jump in purchases by India in the face of soaring global energy prices, with around 40% of India’s oil needs met through flows from the Strait of Hormuz.

After the US’s first waiver expired on April 11, another was issued on April 17. Once that expired on May 16, a final waiver was announced on May 17, which ended on June 17. There has been no renewal since then.

(Source: Indian Express)