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India’s USDT Premium Holds Above 6%: How a Decline Could Affect Crypto Returns

India’s USDT Premium Holds Above 6%: How a Decline Could Affect Crypto Returns

CoineditionCoinedition2026/10/27 14:45
By:Coinedition

As of October 27, 2026, the Crypto Times’ India USDT Premium Index (CTPI-USDT-SPOT-INR) holds above 6% at 6.54%, having seen a peg-adjusted premium of 6.32% at its last fix on October 26, at an index price of ₹100.8000 per USDT, based on three eligible exchanges. 

Down from 6.90% on October 22, the premium’s narrowing raises a key question for Indian crypto traders: could a decline in USDT’s local premium offset gains in their crypto holdings?

The Crypto Times India USDT Premium Index has recorded a peg-adjusted premium of 6.54% at its October 27 daily fix. The index is calculated as the median of the eligible exchange midpoints sampled between 11:30 a.m. and 12:30 p.m. IST across CoinDCX, Giottus and CoinSwitch. 

Although down from its October 22 high of 6.90%, the premium has remained above 6% since October 19, well above the recent 30-day average of approximately 4.4%.

Meanwhile, the raw premium sits at 6.36% based on the USD/INR reference price of ₹95.1854, as per European Central Bank (ECB) euro reference rates as of October 26, the most recent rate as per the index’s strictly-before rule. 

At press time, USDT was trading around $0.9987. That said, based on the October 27 fix data, ₹1,00,000 could buy approximately 987.75 USDT at the India price of ₹101.24 per USDT. 

India’s USDT premium is the gap between the local prices and the dollar-equivalent value of the stablecoin. The index is the comparison of the price in India with a benchmark calculated from the previous day’s USDT/USD price and USD/INR reference rate on the ECB. These readings cover the pricing disparities, but on their own, do not explain why premiums are still so high.

Meanwhile, exchange quotes highlight differences in acquisition costs. Giottus lists USDT at ₹100.32, CoinDCX at ₹100.69, and CoinSwitch at ₹101.77. Meanwhile, the index doesn’t include ZebPay and WazirX in the daily fixing as they quote USDT higher, within the ₹101.05 –₹101.37 range. These disparities can cause traders to pay varying prices based on the exchange, liquidity, and bid-ask spreads.

Local prices may also vary due to market conditions and transaction costs. The 1% TDS on qualifying virtual digital asset transactions, the 30% tax regime for gains and banking or payment friction can impact trading economics in India. 

But, these factors alone do not determine the reason for that premium. When the local purchasing power is higher than the selling liquidity, the USDT may appreciate above the dollar equivalent value, making it more expensive to buy it among Indian traders.

A falling USDT premium can reduce Indian traders’ INR returns even when their crypto assets appreciate against USDT. Their final returns are based on the movement of the asset as well as the value of USDT in local currency.

For instance, if a trader buys USDT at a 6.3% premium and earns a 10% crypto gain, they might end up with a lower INR return if the premium drops to 2.6% before they convert. Assuming that prices of USDT and USD/INR are stable, the return would be around 6.2% before fees, spreads, and taxes.

On the other hand, a higher premium can lead to higher rupee earnings. Traders should therefore monitor local USDT pricing alongside crypto performance and transaction costs.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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