New Delhi: The Reserve Bank of India is considering fresh relief measures for exporters after a loan repayment moratorium announced last year saw limited response, according to people familiar with the discussions.
The central bank had allowed banks to offer temporary relief on loan repayments to exporters affected by higher tariffs imposed by the United States. The move was aimed at easing financial stress in sectors such as garments, jewellery, leather and chemicals. However, only a small share of eligible exporters applied for the facility.
Bankers and export bodies say strict eligibility conditions, including the need to clearly show revenue losses linked to tariffs, discouraged many firms from opting for the moratorium. Some exporters also feared that seeking relief could affect their credit standing or future access to loans.
In response, the RBI is now examining options such as easing eligibility rules, extending the duration of relief, or introducing fresh subsidised credit lines for exporters facing prolonged pressure. Discussions are underway with the government and industry representatives, and a final decision is expected in the coming months.
The government has already announced additional support measures, including interest subsidies and credit assistance for small and medium exporters, as part of a broader export support package. These steps are intended to help businesses manage higher costs and weaker overseas demand.
India’s export sector has been under strain due to elevated tariffs, slower global demand and uncertainty over future trade arrangements. Policymakers believe more targeted support may be needed to protect jobs and sustain export growth if current challenges continue.
Officials said the central bank is closely monitoring the situation and will take further steps if required to ensure exporters have adequate access to credit during this period of uncertainty.