The Indian government approved trade settlement in Indian rupees for export promotion schemes in an effort to expedite and simplify international trade in the country’s currency. With the revision to the Foreign Commerce Policy, trade can now be invoiced, paid for, and settled in Indian rupee.
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), which includes the invoicing, payment, and settlement of exports and imports.
The updated provisions for Export Realization in Indian Rupees have been notified for 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).
Therefore, in accordance with RBI regulations, benefits, incentives, and the fulfilment of export obligations under the Foreign Trade Policy will be extended for realisations in Indian Rupees.
According to the government’s announcement, “the stated Policy modifications have been done to assist and to bring ease to international trade transactions in Indian Rupees given the surge in interest in the internationalisation of the Indian Rupee.”
