Insight Online News
By Nirbhay Kumar
New Delhi, Jan 14 : Expecting delays in payment from overseas buyers, the Federation of Indian Export Organisations (FIEO) is set to request the Reserve Bank of India (RBI) to again extend the period for realisation and repatriation of proceeds of export from 9 to 15 months.
In the wake of the Covid pandemic, the RBI had increased the period of realisation and repatriation of proceeds to India to 15 months for exports made till July 31, 2020.
Ajay Sahai, Director General and CEO at FIEO, said that because of Omicron becoming widespread, sales may be affected. So, buyers who import the goods, sell them and then emit the money would take more time in sending payments.
“If the sale period gets elongated due to slow off take, many exporters feel challenges would arise. We are therefore looking into the possibility of getting another extension in time period for realisation. We would be writing to RBI on this,” Sahai told UNI.
Sahai said that exporters were flushed with orders for the next one year though it varies from industry to industry.
Referring to a discussion in the FIEO board, he said members were not expecting any let up in demand.
“The only thing some of the sectors are worried about is the high prices of inputs. But we are of the view that price increase is not something which is exclusive to India. Input prices have gone up globally and may affect the margin. So, profit may come down but not the business,” Sahai said.
Exports from India have maintained a high growth led by engineering goods, petroleum, gems and jewellery and textiles.
India’s merchandise export in December 2021 was $ 37.29 billion, the highest ever monthly achievement, which shows an increase of 37 per cent over $ 27.22 billion in December 2020 and an increase of 37.55 per cent over $ 27.11 billion in December 2019.