The Reserve Bank of India on Friday announced relief measures to cushion exporters in stressed sectors from the ripple effects of global trade disruptions, offering more time for shipments, easier loan terms and extended credit windows. The measures come amid weak external demand and a steep 50 per cent tariff imposed by the US on Indian shipments since August.
Among the measures RBI has taken are relaxation under the Foreign Exchange Management Act (FEMA) by extending the time available to exporters to realise and repatriate export proceeds from the existing nine months to 15 months. The RBI has also stretched the time period for shipment of goods backed by advance payments from one year to three years, giving exporters greater flexibility to manage delayed orders and supply-chain uncertainties.
Critical debt relief measures have also been announced for sectors hit hardest by the slowdown. A total of 20 sectors, including marine products, plastics, rubber, carpets, apparel and clothing, footwear, furniture, jewellery, iron and steel, nuclear reactors, electrical machinery, vehicles, have been identified.
The RBI said term-loan repayments and interest servicing on working capital loans falling due between September 1 and December 31, 2025, can be deferred, easing immediate cash-flow pressures. Lenders have been allowed to revise drawing power in working capital limits by adjusting margins during the above period.
Exporters will further benefit from an extended credit period — increased from 270 days to 450 days — for both pre-shipment and post-shipment export credit disbursed till March 31, 2026. In cases where dispatches couldn’t take place on or before August 31, banks have been allowed liquidation of packing credit (a pre-shipment loan) through alternative legitimate sources, including domestic sales. The guidelines take immediate effect.
Quality control orders
The ministry of chemicals and fertilisers have rescinded 14 Quality Control Orders covering chemicals and polymers used across industries, including seven crucial fibre intermediates in the man-made fibre (MMF) textile chain.
Industry observers said the withdrawal would significantly reduce raw material prices and improve India’s export competitiveness, especially in segments where China and Vietnam enjoy cost advantages.
“This will provide a level playing field to the Indian textile industry,” said Sanjay K Jain, former CITI chairman. India has a 2030 target of building a $350-billion textile and apparel sector with $100 billion in exports.
The remaining seven rescinded QCOs are expected to benefit MSMEs across the automotive, packaging and consumer goods sectors by lowering compliance burdens and widening sourcing options.