Pros:
1. Dependency on US dollar will reduce, which in turn, appreciates the INR.
2. The Indian Economy when trading in local currency, the fluctuations in the deficit be it of current account or capital account, will reduce.
3. India’s position as a strong market leader will emerge, not dependent upon the mercy of dollar’s exchange rate.
4. Now given that the world order is multi-polar, International Relations should not be dominated by single currency or even a country and trading in local currencies ensures that no one country gets a hegemony over the global market.

Cons :
It is not practically possible given the current scenario where 90% of world trade happens in US Dollar. And changing it overnight is not feasible at all.