NEW DELHI, Oct. 1 (Xinhua) -- The Indian central bank, Reserve Bank of India (RBI), on Wednesday announced several measures to help exporters.
The RBI Governor Sanjay Malhotra, in his statement after the culmination of the bank's three-day Monetary Policy Committee deliberation, said the export sector remains a vital part of India's economy.
"To further strengthen the sector and enhance ease of doing business, we shall extend the time period for repatriation from foreign currency accounts of Indian exporters in Indian Financial System Code from one month to three months, increase the period for forex outlay for Merchanting Trade transactions from four months to six months and simplify the process of reconciliation of outstanding entries related to exports and imports in the respective reporting portals," he said.
Experts say the move has been undertaken to tide over challenges posed by the imposition of 50 percent tariffs by the U.S. administration on Indian exports.
Malhotra believes tariffs will moderate exports.
"The rationalization of the goods and services tax rates is likely to have a sobering impact on inflation while stimulating consumption and growth. Tariffs, on the other hand, will moderate exports," he said. ■
