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Foreign Trade Policy Eases Rupee Payments for Exporters
21 Aug
Summary
- Foreign trade policy amendments now allow invoicing and payments in Indian rupees.
- This change aims to promote rupee internationalization and offer exporters flexibility.
- Rupee export proceeds, excluding Nepal and Bhutan, will qualify for policy benefits.
New amendments to India's Foreign Trade Policy are simplifying the process for exporters to invoice overseas sales and receive payments directly in Indian rupees. This strategic move is designed to further the internationalization of the Indian rupee in trade settlements.
The Directorate General of Foreign Trade (DGFT) has issued notifications making these changes effective. Industry bodies, such as the Confederation of Indian Industry (CII), have expressed their support for these modernizations.
Exporters can now expect greater flexibility and certainty in their financial dealings. Rupee export proceeds, with specific exclusions for Nepal and Bhutan, will now qualify for Foreign Trade Policy (FTP) benefits. These proceeds will count towards fulfilling export obligations, mirroring the treatment of foreign-currency realisations.
