RBI announces trade relief measures for exporters to mitigate the impact of trade disruptions

The Reserve Bank of India, on Friday announced the following measures with a view to mitigate the impact of trade disruptions on exports arising on account of global headwinds. RBI has permitted exporters to bring proceeds of their shipments in 15 months as against the prevailing timeframe of 9 months in view of stress being faced by them. Exporters are facing issues due to a steep tariff imposed by the US on Indian shipments since August. The US imposed a steep 50 per cent tariff on goods from India, which took effect on August 27. Currently, the value of goods or software exports made by exporters is required to be realised fully and repatriated to the country within a period of nine months from the date of export.

Further, RBI has increased in the time period for shipment of goods from one year to three years from the date of receipt of advance payment or as per agreement, whichever is later. Additionally, the RBI has introduced new directives aimed at debt relief, allowing deferment of payment of all of term loans and recovery of interest on working capital loans, as applicable, falling due between September 1, 2025, and December 31, 2025. The measures also encompass a reassessment of working capital requirements, providing flexibility in credit availability. Exporters now have up to 450 days to repay export credits disbursed by March 31, 2026, with relaxed norms for those facing dispatch challenges on packing credits obtained by August 31, 2025. These comprehensive steps signal a robust response to ongoing trade disruptions.

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