Indian Economy News

Centre allows International Trade Settlements in Indian Rupees for Export Promotion Schemes under the Foreign Trade Policy

The Foreign Trade Policy and Handbook of Procedures have been appropriately amended by the Indian government to permit international trade settlement in Indian Rupees (INR), i.e., the invoicing, payment, and settlement of exports and imports in Indian Rupees.

To this effect, the Directorate General of Foreign Trade (DGFT) had earlier introduced Para 2.52(d) vide Notification No. 33/2015-20 dated September 16, 2022, to permit invoicing, payment and settlements exports and imports in INR in sync with RBI’s A.P. (DIR Series) Circular No.10 dated July 11, 2022.

In addition to the aforementioned notification, adjustments have been made to Paragraph 2.53 of the Foreign Trade Policy to allow for the grant of export advantages and the fulfilment of export obligations for export realisations in Indian Rupees in accordance with RBI guidelines dated July 11, 2022.

Imports for exports (Para 2.46 of FTP), export performance for recognition as status holders (Para 3.20 of FTP), realising export proceeds under the Advance Authorization (AA) and Duty Free Import Authorization (DFIA) schemes (Para 4.21 of FTP), and realising export proceeds under the Export Promotion Capital Goods (EPCG) Scheme (Para 5.11 of HBP) are among the updated provisions for export realisation in Indian rupees that have been announced.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.