RBI announces trade relief measures to ease exporters’ burden amid global headwinds

MUMBAI: In a significant move aimed at cushioning Indian exporters from the impact of global trade disruptions, the Reserve Bank of India (RBI) on Friday introduced a series of regulatory relaxations and relief measures.

The steps, effective immediately, are expected to provide much-needed liquidity flexibility and operational relief to sectors facing international uncertainty.

Under the Foreign Exchange Management Act (FEMA) regulations, the RBI has extended the period allowed for the realisation and repatriation of the full value of goods, software, and services exported from India.

According to an official notification, exporters will now have fifteen months, up from the earlier nine months, to bring export proceeds back into the country.

Similarly, the timeline for shipment of goods against advance payments has been expanded substantially–from one year to three years from the date of receipt of the advance or as per contractual agreement, whichever is later. This measure is expected to support exporters grappling with delayed shipments and payment cycles.

Alongside these changes, the RBI has introduced the Reserve Bank of India (Trade Relief Measures) Directions, 2025, offering targeted support to sectors most affected by global trade volatility. As part of the easing of debt burdens, all term loan repayments and interest servicing on working capital facilities falling due between September 1 and December 31, 2025, may now be deferred.

Lenders have also been permitted to recalculate drawing power by adjusting margins or reassessing working capital requirements during this period. Further relief has been extended to exporters through relaxed norms on export credit. The maximum credit period for both pre-shipment and post-shipment export credit has been increased from 270 days to 450 days for loans disbursed until March 31, 2026.

In addition, exporters who availed packing credit on or before August 31, 2025, but were unable to dispatch goods, may now liquidate these facilities through legitimate alternative sources, including domestic sales or proceeds from substitute export contracts. (ANI)