From the textile sector's perspective, a senior office bearer of the textile manufacturer’s association hailed the announcements as a critical third measure by the government, following GST reductions and access to raw materials at international prices

In a significant boost for Indian exporters grappling with global trade disruptions, the Reserve Bank of India (RBI) has rolled out a series of relief measures effective immediately. The central bank has extended the timeframe for repatriating export proceeds from 9 months to 15 months, allowing exporters more flexibility to collect payments for goods and services sold abroad. Additionally, the period for shipping goods after receiving advance payments has been increased from one year to three years.

The RBI has also introduced a moratorium on loan repayments and interest payments for term loans and working capital due between September and December 2025, targeting stressed sectors. The maximum credit period for pre- and post-shipment export credit has been enhanced from 270 days to 450 days. These steps aim to ease repayment cycles and address cash flow mismatches, particularly in anticipation of a potential trade deal with the United States, which has imposed high tariffs impacting Indian exports in recent months.

A senior financial journalist explained that the measures are sector-specific, with a focus on exporters facing significant stress. He stated that over the last few months, many exporters have dealt with very high tariffs from the US government, affecting their businesses substantially. He also noted that while the exact timeline for a US trade deal remains uncertain, these interventions are designed to mitigate building pressures and prevent broader contagion to the MSME ecosystem, where a majority of exporters operate.

Industry experts have welcomed the RBI's pragmatic approach, drawing parallels to similar relief provided during the COVID-19 pandemic. A former Chairman of a public sector bank  described the steps as timely and effective. He stated that these measures give a lot of relief to the exporters' community and allow liquidation of Export Packing Credit (EPC) over a delayed period and even from remittances unrelated to the original shipment. He emphasized that the moratorium addresses cash flow mismatches and prevents accounts from slipping into default, preserving borrowing capacity for MSMEs.

From the textile sector's perspective, a senior office bearer of the textile manufacturer’s association hailed the announcements as a critical third measure by the government, following GST reductions and access to raw materials at international prices. He said that the textile industry aims to scale exports from $40 billion to $100 billion by 2030-31. He also pointed out that the US tariffs had threatened our $11 billion annual exports, but extending the repatriation period to 15 months and allowing adjustments for advance payments without penalties is a game-changer. He highlighted flexibilities such as deferring repayments until March 31, 2026, and offsetting advances against domestic sales or subsequent orders. He further noted that sub-sectors like weaving, knitting, dyeing, and garmenting—predominantly MSME-driven and labor-intensive—stand to benefit the most from the loan deferments between September and December 2025.

Bankers view the measures as non-disruptive to their operations but highly beneficial for borrowers. From lender's standpoint, they affirmed their timeliness saying that exports were largely undisrupted until August, and these announcements within the next three months ensure accounts don't go out of order. This supports the export sector and MSMEs in general without exceptional stress on cash flows, they said. The RBI's swift action underscores its role in stabilizing key economic segments during external headwinds. As negotiations for a US trade deal progress, these reliefs are expected to sustain export momentum, create jobs, and enhance profitability across affected industries.