Even as the value of the rupee tumbled to multiple all-time lows following the onset of the war in West Asia, India used its domestic currency to pay for nearly $15 billion worth of imports in March, April and May. The payment in rupees was likely for oil bought from Russia, whose share in India’s oil imports surged after the US and Israel’s attack on Iran in late February led to the closure of the Strait of Hormuz.According to data released by the Reserve Bank of India (RBI) this week, imports worth Rs 1.38 lakh crore were paid for in rupees during the three months in question, calculations by The Indian Express showed. This accounted for 7.1% of India’s merchandise imports in the three months and is approximately equivalent to $14.6 billion at the average exchange rate of 94-per-dollar that prevailed during March-May.In the previous three months — December 2025 to February 2026 — imports worth Rs 42,506 crore were settled in rupees, equal to 2.4% of total inbound shipments.“The rupee’s depreciation will only explain a small part of this increased rupee settlement of imports,” said Madan Sabnavis, Chief Economist at Bank of Baroda, instead pointing to the sharp rise in India’s purchases of Russian oil starting March.The imports paid for in rupees during March-May is far more than before and exceeds the total for 2023-24 (Rs 99,680 crore) and 2024-25 (Rs 1.13 lakh crore). In 2025-26, the rupee was used to pay for imports worth Rs 1.72 lakh crore.Supplies from RussiaFirst announced on March 12, the US sanctions waiver on buying sanctioned Russian crude oil led to a big jump in purchases by India in the face of soaring global energy prices, with around 40% of India’s oil needs met through flows from the Strait of Hormuz.Story continues below this adAfter the US’s first waiver expired on April 11, another was issued on April 17. Once that expired on May 16, a final waiver was announced on May 17, which ended on June 17. There has been no renewal since then.Also Read | Amid renewed West Asia conflict, discounts on Russian oil for Indian refiners vanishWith the waivers in place, India stepped up its purchases of Russian crude oil to record levels. According to commerce ministry data, India imported Russian crude petroleum to the tune of $17.13 billion in March-May, up 30% year-on-year.In February, India’s Russian oil imports amounted to $2.49 billion.Rupee to pay for importsTo be sure, this would not be the first time India has paid for Russian oil in rupees, with the RBI in mid-2022 announcing a framework for the settlement of international trade in rupees.Story continues below this adAs a net buyer of goods and services from abroad, India’s import bill is often at the mercy of the rupee’s performance — if it weakens, it would lead to more money being paid by importers for a fixed dollar amount. In 2025-26, India had a trade deficit of $119 billion. Also Read | US Russia sanctions bill: The proposed 100% tariff and what it could mean for IndiaAs such, paying for imports in rupees can reduce the outflow of foreign currency and help stabilise the exchange rate which has been under intense pressure over the last year due to foreign capital outflows from domestic financial markets and global geopolitical developments.Rupees are also being used to pay by other countries for Indian goods and software exports. From Rs 15,195 crore in February, Indian exports that were paid for in rupees more than doubled to Rs 41,373 crore in March, before declining to Rs 10,218 crore in April and Rs 8,289 crore in May. The jump in March may have again been on account of Russia.“With India paying for Russian oil in rupees, it makes sense for Russia to use those rupees to pay for what products it can from India,” an economist said, requesting not to be named.Story continues below this adExcept for March 2026, payment received in rupees by India for its exports constitutes a small portion of total exports: Rs 1.75 lakh crore in 2023-24 (3.56% of total exports), Rs 1.69 lakh crore in 2024-25 (3.21%), and Rs 1.87 lakh crore in 2025-26 (3.22%). In the first two months of 2026-27, it has been a mere Rs 18,507 crore (1.82%).