Globle Affair

  Centre allows export incentives for those settling trade in rupee The Centre on Wednesday amended the foreign  trade policy  (FTP) to enable traders to claim export benefits even if payment is settled in the rupee. So far, export incentives were available only when the trade was settled in a foreign  currency . The amendments by the Directorate General of Foreign Trade (DGFT) came into force with immediate effect. The development comes against the backdrop of the mechanism to settle  international trade  transactions in the rupee which was unveiled by the  Reserve Bank of India  (RBI) in July. Given the government's push towards the internationalisation of the rupee, these policy amendments shall help ease  international trade  transactions in the domestic  currency . “The Government of India has made suitable amendments in the Foreign  Trade Policy  and Handbook of Procedures to allow for  international t...

  Dollar still being used to import Russian oil by Indian companies: Report Even though it has been months since India started importing oil at discounted rates from Russia, the payment is still being made in the dollar. Russia, however, is inclined to trade in euro or United Arab Emirates dirham. According to a report by  Economic Times (ET) , Russia is reluctant to shift to the Indian rupee for trade due to the widening trade imbalance between the two countries. According to Indian importers, the rupee trade mechanism that was devised in July by the Reserve Bank of India (RBI) has not gained much traction yet. "Neither banks nor suppliers are too keen on the rupee payment. Since our exports to Russia are too little compared to our imports, suppliers will be left with too many rupees at hand and they aren't sure what they would do with that," an expert told  ET . Rising imports from Russia have widened the trade imbalance between the two countries and Indian lenders too ...