India's USDT Premium: A Market Quirk Fuelled by Local Demand and Government Rules

The price of Tether (USDT) often deviates from its supposed value in India due to a phenomenon known as the 'India Premium'. This premium is the difference between the local market price and the global dollar value, which can range from 3-5% under normal conditions. However, it has been known to spike up to 8.5-10% after major market shocks.

In late June 2026, after the Enforcement Directorate raided several offices in Bengaluru, USDT sold for approximately 102.88 rupees while the actual bank dollar rate was around 94.65 rupees, resulting in an 8.5% gap.

Experts at CoinDCX explained that the rupee price of USDT is influenced by the balance between local buyers and sellers compared to the global dollar price. When there are not enough sellers at the global price, the market price naturally increases.