Settling trade in rupee: FTP tweaks may allow traders export benefits

It is not clear if the changes will be part of the existing FTP or the new policy that the DGFT hopes to unveil in Sept

The Union government will soon make amendments to the foreign trade policy (FTP) to enable exporters to claim export benefits for settling trade in rupees. These benefits are, so far, available for export payments received in foreign currencies.

After the Reserve Bank of India (RBI) unveiled a mechanism to settle international trade transactions in the local currency on Monday, exporters have been demanding that the Ministry of Commerce and Industry come up with a clarification on the matter.

“Since the central bank has allowed payments for cross-border payment in rupees, minor amendments to the foreign trade policy will have to be made,”