Exporters seek six-month loan moratorium amid West Asia trade disruptions.
Reserve Bank of India urged to ease credit, extend repayment timelines.
Industry bodies demand relief from penalties under Interest Equalisation Scheme.
West Asia Conflict Hits Exports; Industry Seeks 6-Month Loan Relief From RBI
Exporters sought increased credit limits and extended loan tenures during the meeting that took place last Monday
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Indian exporters seek financial assistance from the government as West Asia conflict entered its third week. During a meeting with the Reserve Bank of India (RBI), they urged for a six-month moratorium on loan repayments, reported Times of India.
Furthermore, they also sought increased credit limits and extended loan tenures during the meeting that took place last Monday. Similar kinds of relief measures were provided last year as well, when the US imposed steep 50% tariffs on most Indian goods.
The Federation of Indian Export Organisations (FIEO) stressed that the same moratorium should be expanded to include all export sectors currently facing logistical disruptions. Exporters proposed a moratorium on both principal and interest repayments, which they hope will be extended to cover the first and second quarters of 2026.
The Bharat Chamber of Commerce (BCC) also wrote to RBI Governor Sanjay Malhotra, seeking regulatory relief to protect exporters from penal interest and loss of benefits under the Interest Equalisation Scheme (IES) where payment delays arise from shipping disruptions beyond their control.
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The BCC requested that the permissible transit period for usance export bills be extended from "normal transit period plus 25 days" to "normal transit period plus 60 days", particularly to bring uniformity for MSME exporters.
The Ministry of Commerce and Industry is likely to roll out a set of support measures to assist exporters coping with disruptions linked to the West Asia crisis, Commerce Secretary Rajesh Agrawal said on Monday.
“Hopefully within this week, we will share a detailed briefing outlining the steps the Department of Commerce is taking to support exports during this challenging period, particularly in the Middle East,” he told reporters.
India's exports to West Asia were $58.8bn in 2024-25. The exporting community from sectors such as dry fruits, and fruits and vegetables has stated that their shipments have been impacted due to the war.
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[With agency inputs]