RBI Eases Export Rules, Rupee Faces Pressure

On November 17, 2025, the Reserve Bank of India (RBI) announced a package of relief measures to assist exporters in dealing with the pressure from U.S. tariffs. The key change is the extension of the export realization window from 9 months to 15 months, allowing exporters more time to convert their foreign earnings.

This move is expected to have a mixed impact. While the measures provide some operational relief to exporters, the longer repatriation window could also prompt firms to delay their conversions, reducing the immediate dollar supply and potentially putting pressure on the rupee. The Indian currency, which has already declined by 3.5% this year, was trading near its late-September record low of 88.80 against the U.S. dollar at the time of the announcement.

Bankers noted that the added flexibility could encourage exporters to hold on to their proceeds for longer, especially given the rupee's weakening bias. This could chip away at the near-term foreign exchange supply and leave the rupee more vulnerable. The RBI, however, believes it can manage the situation using other policy tools.

The export relief measures come as India's trade outlook remains clouded by stalled negotiations on a U.S.-India agreement that could roll back the 50% duties imposed on several Indian products since late August. These tariffs have already pushed merchandise exports to the United States, India's largest market, down nearly 12% year-on-year in September.