RBI's Extended Repatriation Timeline Eases Exporters' Burden Amid US Tariff Challenges

The Reserve Bank of India extends the repatriation period for exporters from 9 to 15 months, addressing challenges from US tariffs. This amendment aims to alleviate exporter stress, improve trade compliance, and boost export competitiveness. Recent government schemes support exporters with increased funding.

The Reserve Bank of India (RBI) has extended the repatriation period for exporters from nine months to 15 months, responding to stress caused by steep US tariffs on Indian goods. This decision, aimed at easing exporters' burdens, follows the Foreign Exchange Management Regulations amendment.

The Federation of Indian Export Organisations (FIEO) welcomed the RBI's decision, noting it will help strengthen trade-related compliance and offer exporters more flexibility in managing their liquidity. Additionally, relief measures related to loans and packing credit will assist in navigating financial challenges.

Complementing this development, the government has approved two major schemes worth over Rs 45,000 crore to enhance export competitiveness. Prime Minister Narendra Modi highlighted the benefits for MSMEs and labor-intensive sectors, expecting a boost in outbound trade and global market competitiveness.

(With inputs from agencies.)