India and Myanmar have discussed ways to deepen bilateral trade between both nations through their local currencies Rupee and kyat.

According to reports, the issue was discussed on the sidelines of the 12th East Asia Summit Economic Ministers' Meeting at Vientiane, Laos.

India Eyes Boosting Local Currency Trading

During the event, India's Commerce and Industry Minister Piyush Goyal met with Kan Zaw, Myanmar's Minister of Investment and Foreign Economic Relations, and discussed ways to strengthen trade and economic ties.

"Discussed potential cooperation in areas like lentils, diesel, gasoline, electric vehicles, etc and ways to promote bilateral trade including through Rupee-Kyat currency mechanism, between our nations," posted Goyal on his official X page, formerly Twitter.

Local currency trading would reduce transaction costs by eliminating the need to convert currencies twice.

The country is already promoting trade in local currencies with various other countries including UAE, African nations and Russia.

In April, India's consumer affairs ministry said that the payment mechanism for traders importing pulses from Myanmar has been eased and simplified.

In a statement, the ministry asked traders to utilize the Rupee/ Kyat direct payment system using the Special Rupee Vostro Account through Punjab National Bank.

India-Myanmar Trade Ties

Historically, India and Myanmar enjoy strong trade ties. In 2023, India's exports to Myanmar stood at $670.4 million, while incoming shipments from Myanmar to India were worth $954.74 million.

Some of the major imports from Myanmar to include include pulses like lentils, tur, and urad from Myanmar to meet domestic demand.

Additionally, India also imports agri commodities from countries like Australia, Canada, Mozambique, Tanzania, Sudan and Malawi.