The Reserve Bank of India (RBI) has announced a set of relief measures to support Indian exporters facing global trade disruptions and rising tariffs. The new Trade Relief Measures Directions, 2025, are aimed at easing financial stress, improving liquidity, and protecting exporters’ credit histories in the face of international uncertainties.
Under these measures, exporters can defer repayment of both principal and interest on term loans from 1 September to 31 December 2025. For working capital loans such as cash credit or overdraft, interest will continue to accrue, but only on a simple-interest basis, reducing the overall burden. The interest accrued during this moratorium can be converted into a funded interest term loan, to be repaid between 1 April and 30 September 2026.
Banks have been allowed to provide more flexible working capital support by recalculating drawing power and reassessing margins. This enables exporters to access additional funds, particularly when shipments are delayed or payments from international buyers are pending. Furthermore, the maximum period for export credit, both pre-shipment and post-shipment, has been extended from 270 days to 450 days, giving exporters more time to complete shipments and receive payments.
Exporters who had taken packing credit before 31 August 2025 but could not ship the goods are now allowed to repay advances using proceeds from domestic sales or other export orders. Importantly, these relief measures will not be treated as loan restructuring, ensuring that exporters’ credit ratings remain intact. The deferment period will not be counted as overdue days, helping maintain access to future financing.
Banks and non-banking financial companies (NBFCs) are required to set aside a 5% provision for eligible accounts by 31 December 2025 and maintain detailed records for reporting to the RBI. Additionally, the measures include FEMA relaxations, extending the period to repatriate export proceeds from 9 months to 15 months, and increasing the shipment window for goods against advance payments from 1 year to 3 years or as per contract terms.
The relief applies to 20 export-oriented sectors, including chemicals, plastics, textiles, leather, footwear, iron and steel, electrical machinery, vehicles, and furniture. Eligible exporters must have had credit facilities from regulated lenders as of 31 August 2025, classified as “standard” accounts.
These measures provide crucial breathing space for exporters struggling with delayed payments and tariff-related challenges. They ensure cash-flow support to sustain operations, protect credit ratings for future borrowing, and offer extended repayment and shipment periods to ease immediate financial pressure. By proactively supporting exporters, the RBI is also contributing to overall macro-financial stability in the economy.
However, some risks remain. Banks could face stress if a large number of exporters take advantage of the moratorium, and there is a potential for moral hazard, with firms relying on lenient terms without genuine need. Repayment of funded interest-term loans in 2026 could also be challenging if global trade conditions worsen.
Overall, the RBI’s trade-relief measures send a strong signal of support to Indian exporters amid rising tariffs and trade uncertainties. By easing credit terms, providing moratoriums, and protecting credit histories, the central bank is helping exporters maintain operations and financial stability while preparing the sector to navigate global challenges.
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