Creating Trade Linkages through Indirect Currency Usage

The Indian currency, the rupee, not being convertible posed a challenge for Chinese-Indian trade. Initially, the Russians suggested that India pays in Chinese Yuan; however, India rejected the proposal. As a solution, the Russians started getting paid in rupees, which they reinvested in Indian sectors that then exported to Russia. This cycle not only facilitated Russian imports of Indian goods but also strengthened trade ties between the two countries.