The stalled US-India trade deal appears to stem from fundamental disagreements over financial sovereignty rather than simple diplomatic communication issues. The Petro-Rupee StrategyIndia has developed what analysts term the "Petro-Rupee" system, allowing oil purchases outside the traditional dollar framework. This represents a departure from the Petrodollar system established in 1974, where global oil trade has been predominantly denominated in US dollars. India and the UAE have operationalized a Local Currency Settlement system, with Indian Oil Corporation paying for crude oil in rupees. BRICS Digital Currency InitiativeIndia's leadership role in the 2026 BRICS Summit has accelerated development of alternative payment systems.

Source: Economic Times January 26, 2026 06:02 UTC