RBI Unveils Sweeping Relief Measures for Indian Exporters Amid Global Trade Challenges

The Reserve Bank of India has rolled out regulatory relaxations to aid Indian exporters amid global trade disruptions. These measures extend the timeline for export proceeds repatriation and advance shipment, offer debt relief, and adjust export credit norms, providing much-needed liquidity and operational support.

In a landmark move to shield Indian exporters from the turbulence of global trade, the Reserve Bank of India (RBI) has unveiled a set of regulatory relaxations, effective immediately. Designed to inject liquidity and operational support, these measures target sectors most affected by international uncertainties.

The RBI has notably extended the Foreign Exchange Management Act (FEMA) provisions, granting exporters fifteen months instead of nine to repatriate the full value of exports, including goods, software, and services. This extension aims to alleviate the pressures on exporters struggling with delayed payment cycles.

Further aiding exporters, the timeline for shipping goods against advance payments has been pushed from one year to three years, which is expected to ease the burden on those facing shipment delays. Additionally, the RBI has introduced new directives aimed at debt relief, allowing deferment of term loan repayments due by 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.

(With inputs from agencies.)