RBI announces trade relief measures to support exporters deal with tariff headwind
NEW DELHI : To provide relief to exporters on account of trade disruptions arising due to global headwinds, more specifically tariffs, the Reserve Bank of India (RBI) on Friday (November 14, 2025) announced a host of trade relief measures that could mitigate a part of the impact.
In a notification, the central bank enhanced the maximum credit period from 270 days to 450 days for pre-shipment and post-shipment export credit disbursed till March 31, 2026.
An extension has been provided in the time period for realisation and repatriation of the full export value of goods, software and services exported from India between nine to fifteen months from the date of export from India.
It has also allowed lenders to liquidate packing credit facilities availed by exporters on or before August 31, 2025, where dispatch of goods could not take place, from any legitimate alternative sources, including domestic sale proceeds of such goods or substitution of contract with proceeds of another export order.
The RBI has said these measures were taken “with a view to mitigate the impact of trade disruptions on exports arising on account of global headwinds”.
In order to ease the burden of debt repayments on specific impacted sectors, the regulator allowed moratorium on/deferment of payment of all of term loans and recovery of interest on working capital loans, falling due between September 1 and December 31, 2025. Moreover, lenders have been permitted to recalculate “drawing power” in working capital facilities either by reducing margins or by basis reassessment during the same period.
The RBI has also allowed the increase in the time period for shipment of goods from one year to three years from the date of receipt of advance payment or as per agreement, whichever is later.
As per the Reserve Bank of India (Trade Relief Measures) Directions, 2025, the central bank has attempted to ease the burden on debt repayments on specific impacted sectors which have been worst hit by the tariff.
RBI has granted a moratorium on deferment of payment of all of term loans and recovery of interest on working capital loans, as applicable, falling due between September 1, 2025, and December 31, 2025.
Earlier this week, US President Donald Trump said that they are “pretty close” to reaching a “fair trade deal” with India, adding that America will lower the tariffs imposed on Indian goods at some point.
“The proposed regulatory measures coupled with the credit guarantee scheme for exporters announced by Government of India could provide liquidity relief to exporters and help them ride out the near-term pressure on cashflows because of deferment of orders or payments. However, we will have to monitor the extent of moratorium or deferment availed by the exporters. A large quantum of borrowers availing either of relief measures could potentially increase the uncertainty on asset quality for the lenders. A five percent provisioning on such loans, where lenders have given a relief to exporters could also result increase in increase in provisions, but unlikely to have a material impact on near-term profitability,” said Anil Gupta, Senior Vice President & Co Group Head – Financial Sector Ratings, ICRA Ltd.