Centre allows export incentives for those settling trade in rupee

The Centre amended the foreign trade policy (FTP) to enable traders to claim export benefits even if payment is settled in the rupee. So far, export incentives were available only when the trade was settled in a foreign currency.

The amendments by the Directorate General of Foreign Trade (DGFT) came into force with immediate effect.

The development comes against the backdrop of the mechanism to settle international trade transactions in the rupee which was unveiled by the Reserve Bank of India (RBI) in July. Given the government’s push towards the internationalisation of the rupee, these policy amendments shall help ease international trade transactions in the domestic currency.