Bangladesh, July 3 -- Indias economic rise has reached a stage where its financial ambitions must match its geopolitical and commercial aspirations. As Reserve Bank of India (RBI) Governor Sanjay Malhotra recently argued, the internationalization of the Indian rupee is no longer an abstract policy objective-it is becoming a strategic necessity. For a nation that has emerged as one of the worlds fastest-growing major economies, expanding the rupees global role could strengthen economic resilience, reduce vulnerability to external shocks, and reinforce Indias position in an increasingly multipolar global order.

The argument is compelling. Indias economy today is vastly different from the one that existed two decades ago. It is now among th...