CII Welcomes Rupee-Based Export Settlement Reforms

The Confederation of Indian Industry (CII) has welcomed the DGFT’s amendment to the Foreign Trade Policy, making it easier for Indian exporters to invoice overseas transactions and receive payments in Indian rupees. Under the revised framework, rupee export proceeds—except those involving Nepal and Bhutan—routed through approved banking channels will qualify for Foreign Trade Policy benefits and count toward fulfilment of export obligations, similar to realisations in foreign currencies. CII National Committee on EXIM Chairman Sanjay Budhia said the move provides exporters with greater flexibility and certainty while supporting the government’s efforts to modernise and streamline India’s foreign trade ecosystem. Impact on Indian Economy & Stock Market The move could be positive for India’s exporters and the rupee, as greater acceptance of the Indian currency in international trade can reduce dependence on major foreign currencies and potentially lower currency-conversion and settlement risks. Export-oriented sectors such as engineering goods, pharmaceuticals, textiles, chemicals, IT services and other merchandise exporters could benefit from increased flexibility in receiving payments. For the Indian stock market, the development is structurally positive, particularly for companies with large export businesses. Wider rupee-based settlement could also support India’s long-term objective of rupee internationalisation and strengthen the country’s position in global trade. However, the impact on individual companies will depend on the scale of their exports and their ability to adopt rupee-based settlement with overseas customers.