Mumbai: The Reserve bank on Tuesday extended the period of realisation and repatriation for exporters of goods and software from 6 months to 12 months to help them deal with the global economic slowdown.
"The issue has since been reviewed and it has been decided, in consultation with the Government of India, to extend the above relaxation with effect from October 1, 2012 till March 31, 2013," RBI said in a notification.
This has been done in the wake of global economic slowdown leading to payment delay by the buyers abroad.
It further said the provisions in regard to period of realisation and repatriation to India of the full export value of goods or software exported by a unit situated in a Special Economic Zone (SEZ) as well as exports made to warehouses established outside India remain unchanged.
Federation of Indian Export Organisations (FIEO) President Rafeeq Ahmed said extension in the repatriation period will provide relief to the exporters and will reduce the transaction time since they would no longer be required to approach the authorised dealer for extension in repatriation period if it is within 12 months from the date of exports.
Such a move can also be used by the exporters as a part of marketing strategy for promoting exports by offering longer period of credit, he said.
India's exports fell for the sixth consecutive month in October by 1.63 percent year-on-year, with trade deficit widening to a record USD 21 billion.
For the first seven months (April-October) of the 2012-13 fiscal, exports have shrunk by 6.18 percent to USD 166.92 billion.
The economic crisis in the US and Europe is hitting India's exports. Both these markets account for about one-third of country's total shipments.
First Published: Tuesday, November 20, 2012, 23:08