RBI unveils export relief as US trade tensions rise, extends credit period
Nov 14, 2025
The RBI has extended export credit timelines, eased repayment norms and allowed flexibility in realising proceeds to help exporters cope with disruptions triggered by US tariff action
Amid trade tensions with the United States that has imposed 50 per cent tariffs on Indian exports, the Reserve Bank of India announced a host of relief measures for exporters, which included easing the burden on debt repayments for some impacted sectors and relaxation in the repayment of export credit.
In a notification issued today, the central bank enhanced the maximum credit period from 270 days to 450 days for pre-shipment and post-shipment export credit disbursed till March 31, 2026.
It has also allowed lenders to liquidate packing credit facilities availed by exporters on or before August 31, 2025, where dispatch of goods could not take place, from any legitimate alternate sources, including domestic sale proceeds of such goods or substitution of contract with proceeds of another export order.
Why has the RBI introduced these relief measures?
RBI has said these measures were taken “with a view to mitigate the impact of trade disruptions on exports arising on account of global headwinds.”
What repayment relaxations have been provided to impacted sectors?
In order to ease the burden on debt repayments on specific impacted sectors, the regulator allowed moratorium on/deferment of payment of all term loans and recovery of interest on working capital loans falling due between September 1, 2025, and December 31, 2025. Moreover, lenders have been permitted to recalculate ‘drawing power’ in working capital facilities either by reducing the margins or on the basis of reassessment during the same period.
How has RBI eased norms on export realisation and shipments?
RBI has also allowed extension in the time period for realisation and repatriation of full export value of goods/software/services exported from India from nine months to fifteen months from the date of export from India. In addition, the time period for shipment of goods has been increased from one year to three years from the date of receipt of advance payment or as per agreement, whichever is later.
What is the latest on India–US trade discussions?
Earlier this week, US President Donald Trump said that they are “pretty close” to reaching a “fair trade deal” with India, adding that the US will lower the tariffs imposed on Indian goods at some point.
[The Business Standard]
