DGFT Puts Rupee Export Earnings on Par With Foreign Currency for FTP Benefits

The Directorate General of Foreign Trade (DGFT) has amended the Foreign Trade Policy (FTP) 2023 to confirm that export proceeds realised in Indian rupees — provided they come through prescribed banking channels — are treated exactly like proceeds realised in foreign currency for the purpose of export incentives, other FTP benefits, and the discharge of export obligations. The change is made through Notification No. 30/2026-27, and it closes a gap that had left many rupee-settled exporters unsure whether their shipments would still qualify for schemes such as RoDTEP, Duty Drawback, Advance Authorisation and EPCG.

In plain terms: if you invoice and get paid in rupees for an eligible export, you no longer have to worry that the currency of settlement will disqualify you from the benefits a foreign-currency shipment would have earned.

What Happened

The notification amends the relevant FTP provisions so that eligible rupee receipts, routed through the prescribed banking mechanism, are placed at par with foreign-currency earnings. According to trade-press reporting on the notification, export invoices may be denominated in either Indian rupees or a foreign currency for exports to countries outside the Asian Clearing Union (ACU), and qualifying rupee payments will count towards FTP benefits and export-obligation fulfilment. Exports to Nepal and Bhutan continue to sit under their own settlement arrangements and are treated separately.

This builds on the RBI's earlier framework permitting invoicing, payment and settlement of international trade in rupees, and on the special Vostro account structure that lets overseas buyers pay Indian exporters in rupees. What was previously an operational possibility under FEMA is now explicitly recognised on the incentives side by DGFT.

Why It Matters

For years, exporters using the rupee route faced a practical worry: even if the RBI allowed a rupee settlement, would DGFT and the scheme systems treat that shipment as a "genuine" export earning for RoDTEP scrip issuance or for closing an Advance Authorisation? The ambiguity discouraged some exporters from accepting rupee payments, even where a buyer in a dollar-scarce market preferred them.

By putting rupee receipts on par, the amendment removes that hesitation. It supports the broader policy goal of internationalising the rupee, reduces currency-conversion costs and hedging overhead for both sides, and gives exporters a workable alternative for buyers in markets facing dollar shortages or sanctions-related banking friction.

Who Benefits

Exporters selling into markets where rupee settlement is already in use or is being negotiated stand to gain the most — this includes trade with several ACU members and with buyers holding rupee balances in special Vostro accounts. Exporters of goods eligible for RoDTEP, RoSCTL and Duty Drawback benefit because the currency of realisation will no longer be a ground to question the claim. Holders of Advance Authorisation and EPCG authorisations benefit because rupee realisations can count towards export-obligation fulfilment.

What Exporters Should Do Now

• Read the full text of Notification No. 30/2026-27 on the DGFT portal and confirm the exact conditions, banking-channel requirements and any excluded categories before restructuring contracts.
• Check whether your bank is set up to route the rupee realisation through the prescribed mechanism (including any special Vostro arrangement) so the proceeds are recognised as eligible.
• Ensure your e-BRC / IRM (Inward Remittance Message) data correctly reflects rupee realisation, so scheme systems can match the shipment to the payment.
• Revisit pricing and contracts with buyers who prefer rupees — a settlement option you may previously have declined could now be commercially attractive.
• Keep clean documentation linking the shipping bill, invoice and rupee realisation for each consignment, in case a scheme claim is later scrutinised.

What Forwarders and CHAs Should Note

Customs house agents and forwarders advising clients on incentive-linked shipments should flag the rupee option where relevant, and make sure shipping-bill declarations and realisation particulars are consistent so that RoDTEP scrips and drawback are not held up on a currency mismatch.

The Bigger Picture

This amendment is one more brick in India's rupee-internationalisation effort, alongside the RBI's rupee-trade framework and the growing network of special Vostro accounts. It will not, on its own, shift the bulk of India's trade away from the dollar — most global commodity and freight contracts remain dollar-denominated — but it removes a friction point that discouraged rupee use even where both parties wanted it. For exporters to dollar-scarce or banking-constrained markets, it widens the toolkit.

Frequently Asked Questions

Does this mean all my exports can now be settled in rupees? Rupee settlement is permitted for exports to countries outside the ACU and, under the RBI framework, more broadly through special Vostro accounts. Nepal and Bhutan remain under separate arrangements. Confirm eligibility for your specific destination and route with your bank.

Will I still get RoDTEP and Duty Drawback if I am paid in rupees? Per the amendment, eligible rupee proceeds realised through prescribed banking channels are treated on par with foreign-currency proceeds for FTP benefits, including remission schemes. Ensure your realisation is correctly recorded.

Does this change how I file my shipping bill? The filing mechanics remain the same; the key is that your invoice currency, realisation and e-BRC/IRM data are consistent and routed correctly so the shipment qualifies.

Is this the same as the RBI rupee-trade scheme? It is complementary. The RBI framework permits rupee invoicing, payment and settlement; this DGFT notification confirms the FTP-benefit and export-obligation treatment of those rupee earnings.

Conclusion

Notification No. 30/2026-27 gives exporters clarity they had long asked for: getting paid in rupees no longer risks your export incentives or your export-obligation position. Exporters who serve rupee-friendly markets should review their contracts and banking setup to take advantage, while keeping documentation tight so scheme claims flow smoothly.

This summary is for general guidance only. Always verify the exact conditions against the original notification and the Foreign Trade Policy on the official DGFT portal (dgft.gov.in) and consult your authorised dealer bank before restructuring settlement terms.