The Reserve Bank of India’s recently announced trade relief steps offer a much-needed boost to exporters, especially the gems and jewellery industry, which relies heavily on capital and international markets. In the past months, the GJEPC had strongly advocated for an interest moratorium and extended timelines for pre- and post-shipment credit, urging the RBI to ease financial stress on the sector.
These measures come at a critical time, as a significant share of India’s exports—particularly diamonds and diamond jewellery—are bound for the US, where prolonged payment cycles and liquidity constraints have posed persistent challenges. The RBI’s actions are therefore timely, helping safeguard export momentum and financial resilience within the industry.
GJEPC Chairman Kirit Bhansali stated, “The RBI’s Trade Relief Measures offer much-needed support to exporters during a difficult phase for global trade. For months, GJEPC has underscored the mounting pressure on our members due to stretched payment cycles, rising borrowing costs, and tightening liquidity.
“The extension of export credit duration to 450 days, the increase in export realisation timelines from 9 to 15 months, and the allowance to execute export shipments against advance payments for up to 3 years will significantly improve operational flexibility. Along with the moratorium on term-loan instalments and working-capital interest, these initiatives will ease cash-flow constraints for our capital-intensive sector. They will help ensure business continuity, uphold credit discipline, and equip exporters to weather global challenges with improved confidence and stability.”