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.
Published - November 09, 2022 08:06 pm IST
