Despite India’s growing economic prowess and making a mark in the global space, it would not be part of the initial group of Asian countries that would develop a common Asian Currency Unit (ACU) along with a single market to facilitate trade in the region.

The grouping of countries that is currently being envisaged for the common currency unit excludes India at the initial stage and would initially involve only the ASEAN countries along with China, Japan and Korea (called ASEAN plus Three). India would become part of the common unit only at a later stage. The ACU, being developed on the lines of what was done in Europe for the euro, was mooted by the Asian Development Bank (ADB) a few months back and it is the bank which is spearheading the development of the ACU.

Though the Ministry of Finance is yet to formally make a request to become part of the ACU, official sources said that it is very important for India to be included at the initial stage when the index is being conceptualised and developed for it to reflect India-centric concerns.

ADB is undertaking the task to develop the ACU as its mandate requires it to promote economic cooperation in the region.

The ACU is also a precursor for a common currency for the region.

Speaking to The Indian Express, ADB president Haruhiko Kuroda said that though the launch of the common currency was a long way off, it was the ASEAN countries which would be the “core driver” for trade and that the ASEAN plus Three would the “engine” for growth.

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