RBI Announces Major Relief for Exporters Facing Tariff Headwinds
The Reserve Bank of India has unveiled a comprehensive package of trade relief measures to help Indian exporters navigate significant challenges posed by global tariff disruptions.
Key Takeaways
- Extended export value repatriation period from 9 to 15 months
- Loan moratorium for term loans and working capital interest from Sep-Dec 2025
- Export credit period increased from 270 to 450 days
- Goods shipment timeline extended from 1 to 3 years
Extended Timelines for Export Transactions
The central bank has relaxed FEMA regulations concerning the realization and repatriation of export proceeds. Exporters now have between nine to fifteen months from the date of export to bring back their earnings, compared to previous requirements.
Additionally, the timeframe for shipping goods has been significantly extended from one year to three years from the date of receiving advance payments, providing much-needed flexibility amid trade uncertainties.
Debt Relief for Impacted Sectors
Under the RBI’s Trade Relief Measures Directions, 2025, severely affected sectors receive substantial debt repayment relief. A moratorium has been granted on term loan payments and working capital interest recovery falling due between September 1, 2025, and December 31, 2025.
Lenders have been permitted to recalculate ‘drawing power’ in working capital facilities by either reducing margins or through reassessment during this period.
Enhanced Export Credit Facilities
The maximum credit period for both pre-shipment and post-shipment export credit has been increased from 270 days to 450 days for facilities disbursed until March 31, 2026.
Furthermore, lenders can now liquidate packing credit facilities taken by exporters before August 31, 2025, where goods dispatch was hindered. This can be done using legitimate alternate sources, including domestic sale proceeds or substitution with another export contract.
All these relief measures took effect immediately upon announcement on November 14, 2025, providing urgent support to India’s export community facing global headwinds.
