India and Japan are exploring a direct yen–rupee settlement mechanism for their bilateral trade, aiming to reduce reliance on the US dollar and lower transaction costs. NDTV reports that the proposal could be raised in a joint statement during Japanese Prime Minister Sanae Takaichi’s visit to India, with the framework intended to support and expand bilateral trade.
Mint (citing a report from Nikkei Asia) says the idea may be included in the joint statement that follows meetings between Prime Minister Narendra Modi and Takaichi. The discussion is reported to take place around the 16th India–Japan Annual Summit, which is scheduled as part of Takaichi’s official trip.
Both sources describe the proposal as a potential policy framework rather than a finalized agreement. They also link the initiative to the timing of the leaders’ meetings and any subsequent joint statement, indicating it is under consideration as part of broader economic and trade coordination between the two countries.
