DGFT moots Re export realisation from hard currency nations
Directorate General of Foreign Trade (DGFT) is in favour of export realisation in rupee from countries whose currencies are stable and widely accepted.
Kolkata: Directorate General of Foreign Trade (DGFT) is in favour of export realisation in rupee from countries whose currencies are stable and widely accepted.
"Discussions are on for granting benefits to export realisation in rupee from hard currency nations, but not those with which India has land customs stations (LCS).
Talks are also going on with RBI in this regard," DGFT Anup Pujari said here on Thursday.
He said having this facility with countries with which India has LCS was not possible as these borders were very porous and everything could not get accounted for.
"This is a regulatory concern and till we address them, this cannot take place at the moment", Pujari told reporters on the sidelines of an event here.
When asked how this could be possible since the Indian rupee is not convertible on the capital account, Pujari said that would not be a problem.
"The exporters in the hard currency countries like US, Europe and Japan will need to have access to the Indian rupee. Work is in progress in this regard and an enabling environment will have to be created," he said.
Pujari was of the view that by allowing export realisation in rupee terms, the rupee would get strengthened.
At present, India has this kind of arrangement with Iran which is facing US sanctions.
Exporters present at the event raised the issue of increasing import duty on gold which they felt would give rise to smuggling of the precious metal into the country.