Trade Relief Measures

**Executive Summary** The Reserve Bank of India (RBI) has announced trade relief measures on November 14, 2025, to mitigate the impact of trade disruptions on exports. These measures include changes to FEMA regulations regarding export proceeds and specific directions under the RBI's Trade Relief Measures. The guidelines will come into force with immediate effect. **Key Points / Main Content** * **FEMA Regulation on Realization and Repatriation of Export Proceeds:** * The time period for realization and repatriation of full export value of goods/software/services has been extended from nine months to fifteen months. * The time period for shipment of goods has been increased from one year to three years from the date of receipt of advance payment or as per agreement, whichever is later. * **RBI (Trade Relief Measures) Directions, 2025:** * **Easing the burden on debt repayments on specific impacted sectors:** * Moratorium/deferment of term loan and working capital interest payments falling due between September 1, 2025, and December 31, 2025. * Lenders are permitted to recalculate 'drawing power' in working capital facilities. * **Relaxation in the repayment of export credit:** * Maximum credit period is enhanced from one year to 450 days for pre-shipment and post-shipment export credit disbursed till March 31, 2026. * Lenders can allow exporters to liquidate packing credit facilities availed on or before August 31, 2025, from legitimate alternate sources, including domestic sale proceeds or substitution of contract with proceeds of another export order. **Impact Analysis** **Exporters** * **Impact:** Extended timelines for realization of export proceeds and shipment of goods provide increased flexibility. Deferment of loan payments helps with cash flow. * **Action Required:** Exporters need to be aware of the extended timelines for export realization and ensure compliance. They should also coordinate with lenders for availing the moratorium on loan payments and restructuring of working capital facilities. **Lenders** * **Impact:** Lenders need to implement the moratorium provisions and are authorized to recalculate drawing power. * **Action Required:** Lenders need to implement the guidelines for moratorium on loan payments, recalculate drawing power, and allow liquidation of packing credit facilities from alternate sources. They are also responsible for extending the export credit period.

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