Kamal Ghorui
NEW DELHI: Exporters on Monday sought a moratorium on loan repayment for six months, along with higher credit limits and longer tenure, amid indications that govt and RBI are working on a package to help offset the impact of the West Asia conflict, which may take a toll on exports during March.During a meeting with the Reserve Bank of India on Monday, exporters sought a package on the lines of the one given by the regulator last year after the US imposed steep 50% tariffs on all Indian exports.“…the moratorium on repayment of principal and interest announced by RBI for the period Oct-Dec 2025 for sectors affected by the US tariff measures may kindly be considered for further expansion and extension. It would be helpful if the existing moratorium on principal and interest repayments could be extended to cover the first and second quarters of 2026 and made applicable across export sectors, that are currently facing logistics-related disruptions,” Fieo said in its proposal.
The meeting with RBI follows consultations with the department of financial services and the Indian Banks’ Association last week. Exporters have also demanded a liberal regime to restructure short-term export credit, arguing it was required to offset the temporary cash flow stress caused by longer payment cycles from buyers.The commerce department is considering insurance related relief for exporters. “Hopefully within this week…we will send you the detailed briefing on what are the steps we are taking in the commerce department to support the exports during this troubled time,” commerce secretary Rajesh Agrawal told reporters.After the European Union, West Asia is the second largest market for Indian exports, accounting for over 15% of the goods shipped from the country. Last year, exports to the region were valued at nearly $66 billion.Agrawal said that there may be a “southward trend” in exports this month due to the logistical challenges posed by disruption in the Strait of Hormuz.“…there are logistical challenges. Movement of ships…even air cargo also must face certain challenges because of some disruption in flights. So, it will have some impact. Indian exports to that region will suffer and their imports from India will also suffer because they are also dependent on India for multiple product categories,” Agrawal said, adding that he was hoping to close the year with some export growth.In Feb, India’s exports stayed flat, falling 0.8% to $36.6 billion, while imports jumped 24% to $63.7 billion on account of a surge in gold and silver imports.Gold imports jumped over three times to $7.4 billion, while the value of silver shipments surged nearly four times to $1.7 billion.
