Rupee-denominated trade made eligible for export promotion, obligation schemes

Commerce Ministry says changes introduced for granting export benefits and incentives, as well as Fulfilment of Export Obligation norms for importers, for export realisations made in Indian rupees

Updated - November 09, 2022 10:57 pm IST

Published - November 09, 2022 08:06 pm IST - NEW DELHI 

The government has expanded the norms for incentives and export obligations under the Foreign Trade policy to cover foreign trade transactions settled in rupees, the Commerce Ministry said on Wednesday. 

In July, the Reserve Bank of India (RBI) and the Directorate General of Foreign Trade (DGFT) had carried out amendments in the Foreign Trade Policy and trade settlement procedures to enable the use of the rupee for invoicing, payment and settlement of export, import dues. 

The ministry said that changes have now been introduced for granting export benefits and incentives as well as Fulfilment of Export Obligation norms for importers, for export realisations made in Indian rupees. 

“Given the rise in interest in internationalisation of Indian rupee, the policy amendments have been undertaken to facilitate and to bring ease in international trade transactions in Indian rupees,” the ministry said in a statement. 

Engineering Export Promotion Council India chairman Arun Kumar Garodia said allowing trade settlements in the rupee under the various export promotion schemes should help boost exports and signals ‘internationalisation of the domestic currency’. “These are early steps towards 100% convertibility of the Indian rupee,” he noted.   

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.