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  1. It is up to the supplier and normally the supplier would prefer to be paid in the currency of the country where manufacturing is being done. In this way, he can better judge the cost to produce the product and the price to sell the product. From his point of view, he will be able to offer a more stable price that is only based on inflation in India and not worry about currency changes. It will also make it easier for him to sign long term contracts at a specific price and not having to pay money to hedge against foreign currency movements.

    In your case if you are importing to the US and change from US dollars to Indian Rupees, you will risk having to raise your prices if the US dollar weakens. Therefore the risk is now on the importer and you may have to hedge to keep selling prices stable.


  2. Read the terms and conditions in your contract, if there isn’t clause stipulating the mood of payment, it is then a case of willing seller and willing buyer.
    However, if you are not comfortable you may negotiate with them, it is always a buyers’ market.