EXPANDING THE NORMS FOR INCENTIVES AND EXPORT

The Centre has expanded the norms for incentives and export obligations under the Foreign Trade policy to cover foreign trade transactions settled in rupees, the Commerce Ministry said on Wednesday.
In July, the RBI and the Directorate General of Foreign Trade had carried out amendments in the Foreign Trade policy and trade settlement procedures to enable the use of the rupee for invoicing, payment and settlement of export, import dues.
The ministry said that changes have now been introduced for granting export benefits and incentives as well as for meeting Fulfilment of Export Obligation norms for importers, for export realisations made in Indian rupees.
“Given the rise in interest in internationalisation of Indian rupee, the policy amendments have been undertaken to facilitate… international trade transactions in Indian rupees,” the ministry said.
Engineering Export Promotion Council of India chairman Arun Kumar Garodia said allowing rupee trade settlement under the various export promotion schemes should help boost exports and signals the ‘internationalisation of the domestic currency’.
“These are early steps towards 100% convertibility” of the rupee, he added.
The new norms for export realisation in Indian rupees cover schemes including imports for exports, Advance Authorisation and Duty Free Import Authorisation, and Realisation of Export Proceeds under Export Promotion Capital Goods Scheme.

SOURCE: THE HINDU, THE ECONOMIC TIMES, PIB

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