In the midst of changing dynamics of international trade, RBI is planning to to rationalise the Guidelines for Export and Import of Goods and Services under Foreign Exchange Management Act (FEMA), 1999.
The central bank will issue draft guidelines soon for feedback from stakeholders, said Shaktikanta Das, Governor, RBI, on Friday.
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“In line with the progressive liberalisation of foreign exchange regulations, it is proposed to rationalise the extant FEMA guidelines on export and import of goods and services,” he said.
The move will further promote ease of doing business and provide greater operational flexibility to authorised dealer banks, he added.
According to the Ministry of Commerce and Industry, India’s exports touched a new high of $776.68 billion in FY24, slightly surpassing the $776.40 billion recorded in the preceding fiscal year. The country achieved the highest monthly merchandise exports of $41.68 billion in March.
Total goods imports by India in FY24 decreased by 5.66 per cent to $675.44 billion.
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India is actively working on expanding its export portfolio beyond traditional sectors sectors such as iron ore and agricultural commodities. The focus is on diversifying into electronics, pharmaceuticals, engineering products, and food items. The Ministry of Commerce’s initiative aims to strengthen export offerings by introducing goods such as alcohol beverages, prepared meals, confectioneries, and value-added products such as jackfruit and bananas.