DGFT Revises Export Currency Rules Under FTP 2023
The Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, has issued Notification No. 30/2026-27 dated 20 August 2026, introducing amendments to Paragraphs 2.52 and 2.53 of the Foreign Trade Policy (FTP) 2023. The changes focus on the denomination of export contracts and the eligibility of exporters for FTP benefits when export proceeds are realised in Indian Rupees.
DGFT Revises Rules on Denomination of Export Contracts
Under the revised Paragraph 2.52, export contracts and invoices, except those involving member countries of the Asian Clearing Union (ACU), may be denominated in either a foreign currency or Indian Rupees. Export proceeds may similarly be realised in any foreign currency or in Indian Rupees.
Special Provisions for ACU Member Countries
For export contracts involving ACU member countries, other than Nepal and Bhutan, the contract must be denominated in a currency determined by the ACU. However, such transactions may also be denominated and settled according to directions issued by the Reserve Bank of India from time to time.
For exports involving Nepal and Bhutan, contracts may be denominated and settled in Indian Rupees or in accordance with applicable RBI directions. Export contracts and invoices under EXIM Bank or Government of India Lines of Credit may also be denominated in Indian Rupees.
Changes to FTP Benefit Eligibility
The amendment to Paragraph 2.53 expands clarity on the eligibility for export benefits and incentives.
Export Proceeds Realised in Indian Rupees
Exports to countries other than Nepal and Bhutan, where export proceeds are realised in Indian Rupees through banking channels by credit to Indian Rupee accounts of persons resident outside India, opened in accordance with the Foreign Exchange Management (Deposit) Regulations, may be eligible for export benefits, incentives and fulfilment of Export Obligations under the FTP.
The notification also states that exports realised in Indian Rupees as permitted under Paragraph 2.52(d)(ii) may qualify for export benefits and fulfilment of Export Obligations.
Special Provision for Exports to Iran
In the case of exports to Iran, the relevant provisions will apply subject to compliance with Paragraph 2.19 of the Foreign Trade Policy.
Conclusion
DGFT’s latest amendment provides greater clarity on the use of Indian Rupees and foreign currencies in export transactions. By revising the rules on export contract denomination and FTP benefit eligibility, the notification aims to align trade procedures with the applicable foreign exchange framework. Exporters should carefully assess the revised provisions and ensure that their transactions meet the relevant regulatory requirements.
Notification Reference:
DGFT
Notification No. 30/2026-27
20/08/2026