Jagjit Singh

DGFT notifies export incentives on rupee receipts

The commerce ministry on Wednesday notified guidelines that will promote international trade settlement in rupees. It will enable exporters to get stipulated benefits under the foreign trade policy even if the export realisation is in the domestic currency, and not dollar, in select cases, trade analysts said.

The Directorate General of Foreign Trade (DGFT) had already notified its decision to allow invoicing, payment and settlement of external trade in the rupee. The move was required to align the foreign trade policy of the government with the July announcement of the Reserve Bank of India (RBI) and facilitate rupee trade.

The RBI had in July notified the new mechanism to settle international trade in rupees to reduce the depreciation of the rupee against the dollar. Earlier, finance minister Nirmala Sitharaman had said many countries had expressed interest for settling bilateral trade with India in the rupee.

The latest notification said that changes have been introduced in the Foreign Trade Policy (FTP) for grant of export benefits, fulfilment of export obligation, and for export realisations in Indian rupees as per the RBI guidelines released in July.

“Accordingly benefits/fulfilment of export obligation under the Foreign Trade Policy has been extended for realisations in Indian rupees as per the RBI guidelines dated July 11, 2022,” it said

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