With the Rupee weakened, the Narendra Modi government is again exploring the feasibility of non-dollar trade with friendly nations. At a recent meeting, Prime Minister Modi broached the possibility of a Government-to-Government (G2G) mechanism with visiting Russian president Vladimir Putin.
The two commodities that Russia has in abundance - oil and precious stones - constitute 45 per cent of India's total import bill. This may seem to be a terrific way to reduce India's dollar dependence but the problem lies in implementation.
Trade with Russia accounts for less than 2 per cent of India's merchandise trade at the moment, though both countries have a long-standing friendly relationship.
The $7 billion India-Russia defence deal was definitely the high point of Putin's visit, but oil and diamonds can be the real game changers if New Delhi and Moscow work to enhance bilateral trade.