India, Nov 15 : The Reserve Bank of India’s latest regulatory measures—combined with the government’s newly announced credit guarantee scheme are expected to offer timely liquidity relief to exporters facing cashflow strain due to deferred orders and delayed payments, industry experts said.
Amid ongoing global headwinds, the RBI unveiled multiple steps aimed at mitigating the impact of trade disruptions on Indian exports. These include easing repayment burdens for affected sectors through moratoriums or deferments, and permitting lenders to recalculate drawing power in working capital facilities.
The central bank has also relaxed the export credit repayment period and allowed lenders to liquidate packing credit facilities sanctioned on or before August 31, 2025, using any legitimate alternative sources in cases where goods could not be dispatched.
However, experts caution that widespread use of these relaxations will need monitoring.
“A large quantum of borrowers availing either moratorium or deferment could increase uncertainty around lenders’ asset quality,” said Anil Gupta, SVP and Co-Group Head Financial Sector Ratings at ICRA. He added that while the mandated 5% provisioning on such loans may raise provisions, it is unlikely to materially impact near-term profitability.
The Federation of Indian Export Organisations (FIEO) welcomed the RBI’s decision to extend the export realisation period from nine to 15 months and to lengthen the shipment window for goods on receipt of advance payment from one year to three years.
“This extension will offer substantial relief to exporters and help them provide more competitive credit terms to foreign buyers,” said FIEO President SC Ralhan. He added that the move strengthens trade compliance and gives exporters sufficient flexibility to manage liquidity, particularly through term loan and packing credit relaxations.
Ralhan also noted that the extended timelines bring India’s export norms closer to those in other economies, ensuring a more level playing field for domestic exporters.