The commerce ministry says changes have been made to provide export benefits and incentives for export receipts in Indian rupees as well as to meet export obligation norms for importers.
The commerce ministry says changes have been made to provide export benefits and incentives for export receipts in Indian rupees as well as to meet export obligation norms for importers.
The commerce ministry on Wednesday said the government has expanded the norms of incentives and export obligations under the foreign trade policy to cover foreign trade transactions settled in rupees.
In July, the Reserve Bank of India (RBI) and the Directorate General of Foreign Trade (DGFT) had amended the foreign trade policy and trade settlement procedures to enable the use of rupee for invoicing, payment and settlement of exports. import dues.
The ministry said that changes have now been introduced for export receipts in Indian Rupees to provide export benefits and incentives as well as fulfill export obligation norms for importers.
“In view of the increasing interest in internationalization of Indian Rupee, policy amendments have been made to facilitate and ease international trade transactions in Indian Rupee,” the ministry said in a statement.
Engineering Export Promotion Council India chairman Arun Kumar Garodia said allowing trade settlement in rupee under various export promotion schemes should help boost exports and signal ‘internationalization of domestic currency’. “These are initial steps towards 100% convertibility of the Indian rupee,” he said.