Kolkata, Nov 11 (PTI) Engineering export promotion body EEPC India on Friday pitched for a rupee-based trade facility with Myanmar, considering the need for an alternative payment settlement mechanism with the southeast Asian country.

The time has now come for India and Myanmar to examine the possibility of trading in their own currencies, EEPC India chairman Arun Kumar Garodia said at an interactive session with Myanmar's Union Minister of Commerce Aung Naing Oo, and a high-profile ministerial delegation. When asked about the alternative payment mechanism on the sidelines of the annual general meeting of Indian Chamber of Commerce here, the Myanmar minister said "they are also interested in bilateral trade in local currencies".

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"The Reserve Bank of India has already allowed payments to be received in Indian rupees and the competitiveness of both India and Myanmar would be enhanced if Myanmar also accepts payment for all its exports to India in Indian rupees and the same export earnings can be used to make payments for goods and services imported from India," Garodia said.

On Wednesday, India notified that exporters will receive all stipulated benefits under the foreign trade policy for export realisations in domestic currency after the Commerce ministry desired to promote international trade settlement in rupee.

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"The Myanmar minister responded positively and said they are also looking actively towards trading in local currencies," EEPC India executive director Suranjan Gupta said.

The total merchandise trade between India and Myanmar reached USD 1.9 billion in 2021-22, according to the EEPC official.

The Myanmar government had reportedly intended to initiate the currency convertibility for the Indian rupee for trade along the border it shares with India, following the Southeast Asian country's agreement to deal in Thai baht with neighbours and the kyat-baht initiative for border trade with China.

"The Myanmar government intends to initiate similar currency convertibility for the Indian rupee for trade along the border it shares with India," the Ministry of Information, Myanmar had said in a statement back in March.

Myanmar has an Indian investment of over USD 1.2 billion, which is higher than those of any South Asian nation, the EEPC said.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)