India’s landmark economic reforms of 1991 were built on the principle of trusting markets, reducing excessive controls and empowering businesses to compete globally. More than three decades later, trade and industry experts argue that the same philosophy should now guide the Reserve Bank of India’s (RBI) foreign exchange regulatory framework for exporters and importers.
According to industry stakeholders, Indian exporters and importers today operate in a vastly different global business environment, marked by complex supply chains, digital trade, cross-border payment systems and increasing competition. They believe the RBI should move further towards a trust-based regulatory approach, giving genuine businesses greater operational flexibility while focusing enforcement on high-risk transactions.
The experts said that India’s businesses have consistently demonstrated resilience and compliance despite geopolitical uncertainties, supply chain disruptions and volatile freight markets. They argued that simplifying foreign exchange procedures and reducing compliance burdens would improve ease of doing business, lower transaction costs and enhance India’s export competitiveness.
They also noted that the RBI has already introduced several reforms in recent years, including easing foreign exchange regulations and extending timelines for export realisation, signalling a shift towards a more facilitative regulatory framework. However, they believe additional measures based on trust and risk-based supervision could further strengthen India’s trade ecosystem.
Industry representatives said that a regulatory framework founded on trust, backed by technology-driven monitoring and targeted enforcement, would align with the spirit of the 1991 liberalisation reforms and support India’s ambition of becoming a leading global trading nation.
