With global trade volatility and the tariff shock from the Trump administration intensifying pressure on Indian exporters, the Reserve Bank of India has stepped in as a stabilising force, announcing a range of relief measures. The RBI has directed banks and NBFCs to offer moratorium benefits on term loans and extend credit support to affected exporters. This move serves as a lifeline for exporters facing severe cash-flow stress due to US tariffs and delayed orders.
Here is a look at which sectors could feel the impact of this policy shift and what it means for investors.
What’s Happening?
Recent US tariffs, coupled with broader global economic pressures, have created a payment crisis for Indian exporters. Many American buyers are either pausing orders or renegotiating prices, severely straining cash flows for Indian businesses. In response, the RBI made a crucial announcement on 14 November 2025, something market participants are informally calling the ‘Trump Relief’.
The RBI clarified that the primary objective is to ease the debt burden on exporters, ensuring they can continue operations during this difficult phase. The relief will be channelled through all regulated entities, including commercial banks, cooperative banks, and NBFCs. The only condition: the borrower’s account must be classified as ‘standard’ as of 31 August 2025.
Trigger Behind RBI’s Relief Measures for Exporters
These relief measures became necessary as global uncertainties, particularly the steep US tariffs, have intensified pressure on Indian exporters. The 50% tariff imposed from 27 August, one of the highest ever levied on any country, has directly impacted India’s export competitiveness. Additionally, the 25% penalty on Russian oil purchases has weakened bilateral trade, contributing to a 12% decline in India’s exports to the US in September.
These disruptions have resulted in delayed payments, higher operating costs, and significant liquidity stress for exporters. Many are struggling to service their loans on time, increasing the risk of defaults. Under such circumstances, the RBI introduced targeted relief measures to support exporters and ensure that viable, operationally sound businesses can continue functioning without interruption.
Key Relief Measures: Moratorium & Interest Concessions
The RBI has introduced two major relief measures:
Moratorium Period: The RBI has directed banks, NBFCs, and other financial institutions to offer a moratorium on term-loan installments and working-capital interest falling due between 1 September 2025 and 31 December 2025. During this period, interest will accrue on a simple-interest basis, and the accumulated amount will be converted into a Funded Interest Term Loan (FITL), to be repaid between 31 March 2026 and 30 September 2026. For working-capital loans, banks will be allowed to reset the borrower’s drawing power by reducing the margin to ease cash-flow pressure.
Relief in Export Credit Repayment: The RBI has extended substantial support to exporters by lengthening the pre-shipment and post-shipment credit period from 270 to 450 days for loans sanctioned up to 31 March 2026, widening the window for realising export proceeds from nine to 15 months, and allowing up to three years, rather than one, for completing shipments against advance payments.
What’s in it for Investors?
The RBI’s relief measures for exporters may create some asset-quality uncertainty for banks, especially if a large number of borrowers opt for the moratorium or repayment flexibility. In such cases, banks will have to make an additional 5% provision on these loans, increasing their provisioning burden. However, Anil Gupta from ICRA, the credit rating agency, believes this is unlikely to significantly impact near-term profitability.
Additionally, the 20 sectors that the RBI has deemed eligible for relief include fisheries, chemicals, plastics and rubber, leather and textiles, footwear, precious metals, iron and steel, aluminium, electrical and surgical equipment, vehicles, furniture, and nuclear reactors.
What’s Next?
The RBI’s relief measures are expected to ease short-term cash pressures for exporters, helping them meet their payment obligations on time. According to the regulator, these steps aim to reduce the debt-repayment burden caused by global trade disruptions and ensure that viable businesses continue operating.
ICRA’s Anil Gupta noted that the RBI’s measures, combined with the government’s credit guarantee scheme, will provide significant liquidity support to exporters and help them manage cash-flow stress arising from delayed orders or payments.
This move comes at a time when bilateral trade discussions between India and the United States have intensified. US President Donald Trump recently indicated that the US may reduce tariffs on India, adding that both countries are ‘very close’ to reaching a fair trade deal.
*The companies mentioned in the article are for information purposes only. This is not investment advice.
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