New Delhi, Nov 15 (NationPress) The recent regulatory actions by the RBI, along with the government's credit guarantee scheme for exporters, are set to offer significant liquidity relief for exporters, allowing them to manage the immediate pressures on cash flows caused by order deferments or payment delays, as per industry analysts.

The Central Bank has introduced various strategies to alleviate the repercussions of trade disruptions on Indian exports, which are largely due to global economic challenges.

To lessen the financial strain on certain affected sectors, the RBI has implemented a moratorium on debt repayments and has authorized financial institutions to reassess the ‘drawing power’ within working capital arrangements. Additionally, the bank has relaxed the repayment timelines for export credits and permits lenders to liquidate packing credit facilities availed prior to August 31, 2025, in cases where goods dispatch could not occur, utilizing any legitimate alternate sources.

“Nonetheless, we must keep an eye on the level of moratorium or deferment that exporters utilize. A significant number of borrowers taking advantage of these relief measures may raise concerns regarding asset quality for lenders,” noted Anil Gupta, SVP and Co Group Head - Financial Sector Ratings, ICRA.

The requirement for a five percent provision on such loans, where lenders have extended relief to exporters, could also lead to an increase in provisions, although it is unlikely to severely impact near-term profitability, he added.

The Federation of Indian Export Organisations (FIEO) expressed its support for the RBI's decision to extend the export realization period from nine months to 15 months, along with the extension of the goods shipment period against advance payments from one year to three years.

“This extension will provide substantial relief to the export sector. Exporters will be able to offer more favorable credit terms to foreign buyers. Compliance related to trade will improve due to this pro-trade initiative. Indian exporters will benefit from adequate time for shipping goods upon receiving advance payments. Relief measures concerning term loans and packing credits will empower exporters to manage their liquidity effectively,” stated SC Ralhan, FIEO President.

He further emphasized that this extension aligns with practices in several other economies, promoting a level playing field for Indian exporters.