Indian exporters have urged the Reserve Bank of India (RBI) to extend the tenure of export credit to 450 days, citing rising borrowing costs and growing financial pressure on businesses engaged in international trade.
The export community has sought a longer repayment window to help exporters manage working capital requirements, particularly as higher interest rates increase the cost of financing export orders.
Exporters said longer credit availability would give businesses more flexibility amid extended production, shipment, and payment cycles. The request is particularly relevant for sectors where overseas buyers take longer to settle invoices.
The proposal comes amid concerns over the impact of elevated financing costs on India’s export competitiveness. Higher interest expenses can increase the overall cost of fulfilling international orders and put pressure on exporters’ margins.
An extension of the export credit period to 450 days could help exporters maintain liquidity and meet operational expenses while waiting for payments from overseas customers. The move could also support smaller exporters, which generally have greater dependence on bank credit for working capital.
The export body has called for RBI support as exporters navigate changing global trade conditions and financing challenges. A longer credit tenure, if approved, is expected to ease cash-flow pressures and provide exporters with additional flexibility to sustain and expand overseas business.