The Directorate General of Foreign Trade (DGFT) has officially amended the Foreign Trade Policy (FTP) 2023, placing Indian Rupee (INR) export earnings on equal footing with major currencies like the US Dollar and Euro. Indian exporters gain the freedom to contract, invoice, and settle international trade directly in rupees across most global markets outside the Asian Clearing Union framework.
Crucially, rupee earnings processed through authorised banking channels now qualify for duty drawbacks, official FTP incentives, and Export Obligation fulfillments on par with foreign-currency receipts. Experts add that to transform rupee settlement from a useful facility into a mainstream trade option, India must back its policy changes with simplified banking, affordable hedging, and country-specific settlement frameworks.
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